Baroda BNP Paribas launches small cap fund
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Baroda BNP Paribas Mutual Fund announced the launch of Baroda BNP Paribas Small Cap Fund, an open-ended equity scheme predominantly investing in small-cap stocks. The fund will be managed by Shiv Chanani (Senior Fund Manager). Shiv has over 24 years of experience and has deep experience in mid and small cap space. The fund will be benchmarked against Nifty Small Cap 250 TR Index.
The NFO opened on Friday and will close on October 20, 2023. It has two plans: Baroda BNP Paribas Small Cap Fund - Regular Plan and Baroda BNP Paribas Small Cap Fund - Direct Plan. The fund will invest more than 65 per cent of the net assets into small-cap companies. It will follow a bottom-up stock-picking approach.
“Baroda BNP Paribas Small Cap Fund is an ideal option for long-term investors looking to benefit from large structural growth opportunity in the Indian economy. Small cap segment offers investment options across a wide range of sectors and is characterised by relatively high growth rates,” said Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund.
Over the last 10 years, Nifty Small Cap TRI index has delivered an impressive 21 per cent CAGR. We believe our disciplined investment process that focussed on BMV (Business, Management and Valuation), strong risk management framework and an experienced investment team positions us well to serve our investors, he added.
The scheme is suitable for investors looking for long-term wealth creation through Indian equity market. Small cap stocks typically have higher growth potential but tend to display more volatility in short-term and therefore investors should consider investment horizon of more than three years, the company said.
