Baroda BNP Paribas MF launches new value fund

Hyderabad: Baroda BNP Paribas Mutual Fund announced the launch of Baroda BNP Paribas Value Fund,an open-ended equity scheme that follows a value investment strategy. The fund, which aims at creating wealth for the long-terminvestors, will be managed by Shiv Chanani,a senior fund manager, who comes with over 21 years of experience. Its performance will be benchmarked against Nifty 500Index.The NFO which opened on May 17, 2023, will close on May 31, 2023.

The fund aims to achieve long term capital growth by investing in a diversified portfolio of companies selected using principles of value investing. The fund would identify mispriced opportunities between the intrinsic value and the prevailing market price. To identify these opportunities, the fund would look for stocks which trade at a discount to the overall market, their own historical average valuations or relative to their fundamental valuations. The fund believes that value opportunities are available in the equity markets at multiple levels: a) broad market often over-reacts to crises as seen in GFC in 2008 or Covid meltdown in 2020.This can provide attractive opportunities across the market; b) Sector specific challenges like short term supply chain disruptions, regulatory changes, etc. provide value opportunities at the sector level; and c) finally, company specific opportunities unearthed through our bottom up research. The scheme will invest in equity andequity related instruments (65 per cent– 100 per cent), debt &money market instruments (0 per cent– 35 per cent), units issued by REITs &INvITs (0 per cent– 10 per cent) and units of mutual fund schemes (0- 10 per cent)