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

Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Value Fund. The scheme opened for public subscription on May 17, 2023, and will close on May 31, 2023.

Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Value Fund. (MINT_PRINT)Premium
Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Value Fund. (MINT_PRINT)

Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Value Fund, an open-ended equity value fund scheme that seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related instruments by following a value investment strategy. 

However, there can be no assurance that the investment objectives of the scheme will be realized. The scheme does not guarantee/indicate any returns.

The scheme opened for public subscription on May 17, 2023, and will close on May 31, 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 that seeks capital appreciation on investments over the long term. Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund said, “At Baroda BNP Paribas AMC, we have a strong investment culture backed by a disciplined framework, seasoned team, and robust processes. In our new fund, Baroda BNP Paribas Value Fund, we aim to identify investment opportunities where stocks are available at a discount to their intrinsic value. These opportunities can be across stocks, sectors, and market caps. To manage risk, we have a robust margin of safety framework: The margin of safety in the balance sheet, in earnings, and in valuation represents our ‘3 S Framework’".

What is the main objective of investing in this fund?

The scheme seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related instruments by following a value investment strategy. However, there can be no assurance that the investment objectives of the scheme will be realized. 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 Maximum
Equity and Equity Related Instruments 65%100%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 equity value 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 

Name of the Value Fund 

HDFC Mutual Fund 

HDFC Capital Builder Value Fund 

Canara Robeco Mutual Fund  

Canara Robeco Value Fund 

IDBI Mutual Fund 

IDBI Long Term Value Fund 

Axis Mutual Fund 

Axis Value Fund 

DSP Mutual Fund 

DSP Value Fund 

Aditya Birla Sun Life Mutual Fund

Aditya Birla Sun Life Pure Value Fund 

Indiabulls Mutual Fund

Indiabulls Value Fund 

Nippon India Mutual Fund 

Nippon India Value Fund 

Quantum Mutual Fund 

Quantum Long Term Equity Value Fund 

UTI Mutual Fund 

UTI Value Opportunities Fund 

Source: Groww.in 

How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked to the performance of the Nifty 500 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 1 year from the date of allotment - Nil.

- If units of the scheme are redeemed or switched out in excess of the limit within 1 year from the date of allotment - 1% of the applicable NAV.

- If units of the scheme are redeemed or switched out after 1 year from the date of allotment - Nil.

The above load shall also be applicable for switches between the schemes of the Fund and all Systematic Investment Plans (SIPs), Systematic Transfer Plans, and Systematic Withdrawal Plans. No load will be charged on units issued upon re-investment of the amount of distribution under the same IDCW option and bonus units.

Who will manage this scheme?

Shiv Chanani is the designated fund manager 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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Mutual fund inflows rise in FY23
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Mutual fund inflows rise in FY23

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Published: 17 May 2023, 03:33 PM IST
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