NFO Alert: Baroda BNP Paribas Mutual Fund launches Baroda BNP Paribas Manufacturing Fund; all you need to know

Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Manufacturing Fund. The scheme opened for public subscription on June 10, 2024, and will close on June 24, 2024.

Abeer Ray
First Published12 Jun 2024, 09:43 AM IST
BNP Paribas Mutual Fund launches Baroda BNP Paribas Manufacturing Fund as a part of its new fund offers.
BNP Paribas Mutual Fund launches Baroda BNP Paribas Manufacturing Fund as a part of its new fund offers.

Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Manufacturing Fund, an open-ended equity scheme following a manufacturing theme.

The scheme opened for public subscription on June 10, 2024, and will close on June 24, 2024. 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 sectoral/thematic equity scheme following a manufacturing theme.

Commenting on the NFO launch, Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund, said, “We are thrilled to launch the Baroda BNP Paribas Manufacturing Fund. The scheme offers a compelling investment opportunity as the manufacturing sector is poised for multi-decade growth fuelled by growing consumption, investments, exports, changing geopolitical dynamics, and favourable government policy.”

Also Read: Mutual Funds: Should you invest in NFO? Here is a framework that will help you decide

What is the main objective of investing in this fund?

The scheme shall seek to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of companies engaged in the manufacturing theme.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of 1000 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)

Minimum

Maximum

Equity and Equity-related securities of companies engaged in manufacturing theme

80%

100%

Other Equity and equity-related instruments of companies other than having the manufacturing theme

0%

20%

Debt and Money Market Instruments 

0%

20%

Units of Mutual Funds (Domestic Schemes)

0%

10%

Units issued by REITs & InvITs

0%

10%

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such manufacturing mutual funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

Mutual Fund House

Name of the Fund

5-year returns 

(in %)

Navi Mutual Fund

Navi Nifty India Manufacturing Index Fund

-

Kotak Mahindra Mutual Fund

Kotak Manufacture in India Fund

-

Bank of India Mutual Fund

Bank of India Manufacturing & Infrastructure Fund

29.38

ICICI Prudential Mutual Fund

ICICI Prudential Manufacturing Fund

27.83

Quant Mutual Fund

Quant Manufacturing Fund

-

Axis Mutual Fund

Axis India Manufacturing Fund

-

Aditya Birla Mutual Fund

Aditya Birla Sun Life Manufacturing Equity Fund

19.83

Mahindra Manulife Mutual Fund

Mahindra Manulife Manufacturing Fund

-

HDFC Mutual Fund

HDFC Manufacturing Fund

-

Canara Robeco Mutual Fund

Canara Robeco Manufacturing Fund

-

Source: AMFI (As of June 11, 2024)

How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked to the performance of Nifty India Manufacturing TRI.

Nifty India Manufacturing TRI refers to the Nifty India Manufacturing Total Returns Index, which monitors the progress of stocks reflecting India's manufacturing sectors, incorporating reinvested dividends for a comprehensive evaluation of performance.

The Nifty India Manufacturing TRI shares similarities with the Nifty India Manufacturing Index, yet it additionally considers dividends disbursed by the constituent companies. Consequently, the TRI typically yields higher returns compared to the standard index.

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 also be calculated as under:

  • If units of the scheme are redeemed or switched out up to 10% of the units within 1 year from the date of allotment - Nil.
  • If units of the scheme are redeemed or switched out over and above 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.

Who will manage this scheme?

Jitendra Sriram shall be the designated fund manager for the 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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First Published:12 Jun 2024, 09:43 AM IST
HomeMutual FundsNFO Alert: Baroda BNP Paribas Mutual Fund launches Baroda BNP Paribas Manufacturing Fund; all you need to know

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