Baroda BNP Paribas Mutual Fund has announced the launch of its new Business Conglomerates Fund, an open-ended equity scheme designed to invest in listed companies from India's prominent multi-generational business groups. This innovative fund aims to capitalize on the strengths and diversification of large conglomerates in the Indian market.

Key Features of the Fund

• Investment Focus: The fund will target listed companies from India's large multi-generational business groups.
• Benchmark: The scheme will be benchmarked against the BSE Select Business Groups Index.
• Diversification Strategy: Investments will be spread across at least four conglomerate groups.
• Exposure Limit: Single group exposure is capped at 25% of net assets, ensuring risk mitigation.
• Fund Managers: The scheme will be managed by experienced professionals Jitendra Sriram and Kushant Arora.

New Fund Offer Details

Investment Rationale

Baroda BNP Paribas Mutual Fund highlights several advantages of investing in conglomerates:

1. Diversified Revenue Streams: Conglomerates operate across multiple sectors, potentially reducing overall business risk.
2. Easier Capital Access: Large business groups often have better access to capital markets and financing options.
3. Strong Brand Equity: Multi-generational businesses typically benefit from established brand recognition and loyalty.
4. Value Unlocking Potential: Opportunities for value creation through corporate actions like demergers.

Expert Insight

The fund house believes that investing in established business conglomerates can offer a unique blend of stability and growth potential. By focusing on multi-generational business groups, the fund aims to tap into the experience, diverse business portfolios, and strategic advantages that these conglomerates possess in the Indian market landscape.

Investors interested in exposure to India's leading business houses now have an opportunity to participate in their growth story through this specialized fund offering. As with all investment decisions, potential investors are advised to carefully consider their financial goals and risk tolerance before investing in this new fund.

Baroda BNP Paribas Mutual Fund has introduced a new investment opportunity for retail investors looking to add gold to their portfolios. The asset management company has launched the Baroda BNP Paribas Gold ETF Fund of Fund, offering a convenient way to invest in gold without the hassles of physical ownership.

Key Features of the New Fund

• New Fund Offer (NFO) Period: The NFO is set to close on August 14, 2025.
• Minimum Investment: Investors can start with a lump sum of ₹1,000 or opt for Systematic Investment Plans (SIPs) from as low as ₹500 per month.
• Investment Strategy: The fund will invest in units of the Baroda BNP Paribas Gold ETF, which holds physical gold.
• Exit Load: A 1% exit load applies for redemptions within 15 days of allotment. No exit load thereafter.
• Fund Management: The fund will be managed by Gurvinder Singh Wasan, Madhav Vyas, and Swapna Shelar.

Addressing Market Needs

The launch of this Gold ETF Fund of Fund comes as gold prices approach ₹1 lakh per 10 grams. This new offering aims to provide cost-effective access to gold investments for retail investors who may find direct investment in physical gold challenging due to rising prices.

Expert Insights

Prashant Pimple, Chief Investment Officer at Baroda BNP Paribas Mutual Fund, highlighted the significance of gold in Indian households. He noted that Indian households collectively hold around 25,000 tonnes of gold, surpassing the combined reserves of the top 10 central banks globally. This statistic underscores the cultural and financial importance of gold in India.

Investment Accessibility

The Baroda BNP Paribas Gold ETF Fund of Fund is designed to make gold investment more accessible to a broader range of investors. By allowing investments through mutual fund units, it eliminates the need for demat accounts and the complexities associated with storing physical gold.

This new fund offering provides an opportunity for investors to diversify their portfolios with gold, potentially serving as a hedge against market volatility and inflation.