Baroda Mutual Fund : Baroda BNP Paribas Mutual Fund recently unveiled its latest financial offering, the Baroda BNP Paribas Small Cap Fund. This open-ended equity value fund is meticulously designed to cultivate long-term capital appreciation by channeling investments primarily into equity and equity-related securities of small-cap companies.
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It’s important to note, however, that while the fund aims to achieve this investment objective, there is no absolute guarantee of success.
The Baroda BNP Paribas Small Cap Fund, launched on October 6, invites public subscriptions until October 20, offering enthusiasts the opportunity to participate in this innovative venture. Following the initial subscription period, the scheme will reopen for continuous sale and repurchase after five working days from the date of allotment.
Investors looking to embark on their financial journey through this scheme can initiate their involvement with a minimum investment of Rs 5000 per plan or option, allowing subsequent investments in multiples of Rs. Notably, there is no upper limit for investment, providing flexibility for those with varying financial capacities. Besides its focus on equity, the fund diversifies its portfolio by investing in debt money market segments, real estate trusts, and mutual fund units.
Aligned with the objective of tracking the performance of Nifty Small Cap 250 TRI Index, the Baroda BNP Paribas Small Cap Fund does not impose any entry load. However, investors should be aware of the exit load structure:
- No exit load if up to 10% of the scheme units are redeemed or exited within one year from the date of allotment.
- An exit load of 1% of the applicable NAV on redemption of more than 10% units or exit within one year from the date of allotment.
- No exit load on redemption or exit after one year from the date of allotment.
Shiv Chanani and Mitten Vora, esteemed fund managers, steer the course of this small-cap equity fund. Acknowledging the inherent risks associated with this venture, it falls under the ‘very high risk’ category, emphasizing its suitability for investors well-acquainted with and willing to navigate the intricacies of high-risk investments.
the Baroda BNP Paribas Small Cap Fund stands as a beacon for those seeking substantial long-term capital appreciation, combining innovative strategies with a diversified investment approach. As with any financial endeavor, investors are encouraged to carefully review the scheme information document and assess their risk tolerance before considering participation in this fund.