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Business News/ Money / Personal Finance/  NFO Alert: Baroda BNP Paribas Mutual Fund launches Small Cap Fund; all you need to know
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NFO Alert: Baroda BNP Paribas Mutual Fund launches Small Cap Fund; all you need to know

Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Small Cap Fund. The scheme opened for public subscription on October 06, 2023, and will close on October 20, 2023.

Baroda BNP Paribas Mutual Fund launched the Baroda Baroda BNP Paribas Small Cap Fund as part of its new fund offers.Premium
Baroda BNP Paribas Mutual Fund launched the Baroda Baroda BNP Paribas Small Cap Fund as part of its new fund offers.

Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Small Cap Fund, an open-ended equity value fund scheme that seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of small-cap companies. However, there can be no assurance that the investment objective of the scheme will be realised. The scheme does not guarantee/indicate any returns.

The scheme opened for public subscription on October 06, 2023, and will close on October 20, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.

What kind of mutual fund scheme is this?

This is an open-ended equity value fund scheme predominantly investing in small-cap stocks.

What is the main objective of investing in this fund?

The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of small-cap companies. However, there can be no assurance that the investment objectives of the scheme will be realised. The scheme does not guarantee/indicate any returns.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of Rs 5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Instruments

Indicative allocations (% of total assets)

Risk Profile

Minimum

Minimum

Equity & equity-related instruments of small-cap companies

65%

100%

High

Equity and equity-related instruments of other than small-cap companies

0%

35%

High

Debt & Money Market instruments

0%

35%

Low to Medium

Units issued by REITs & INvITs

0%

10%

Medium to High

Units of Mutual Fund Scheme

0%

10%

Medium to High

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such small-cap equity funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the stocks invested in these kinds of funds. Some of them include:

Mutual Fund House

Small cap fund

HDFC Mutual Fund

HDFC Small Cap Fund

ICICI Prudential Mutual Fund

ICICI Prudential Smallcap Fund

Tata Mutual Fund

Tata Small Cap Fund

Canara Robeco Mutual Fund 

Canara Robeco Small Cap Fund

Sundaram Mutual Fund

Sundaram Small Cap Fund

Axis Mutual Fund

Axis Small Cap Fund

Invesco Mutual Fund

Invesco India Smallcap Fund

DSP Mutual Fund

DSP Small Cap Fund

Edelweiss Mutual Fund

Edelweiss Small Cap Fund

Kotak Mahindra Mutual Fund

Kotak Small Cap Fund

Nippon India Mutual Fund

Nippon India Small Cap Fund

Quant Mutual Fund

Quant Small Cap Fund

UTI Mutual Fund

UTI Small Cap Fund

SBI Mutual Fund

SBI Small Cap Fund

Source: AMFI

How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked to the performance of Nifty Small Cap 250 TRI.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load", which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load" would be charged in the order

  • If units of the scheme are redeemed or switched out up to 10% of the units (the limit) within one year from the date of allotment - Nil.
  • If units of the scheme are redeemed or switched out in excess of the limit within one year from the date of allotment - 1% of the applicable NAV.
  • If units of the scheme are redeemed or switched out after one year from the date of allotment - Nil.

For any change in load structure, the AMC will issue an addendum and display it on the website/ISCs.

Who will manage this scheme?

Shiv Chanani and Miten Vora are the designated fund managers of this scheme.

Does the fund contain any inherent risk?

The scheme involves “Very High Risk" as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

 

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Published: 06 Oct 2023, 11:46 AM IST
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