The Baroda BNP Paribas Innovation Fund aims to leverage the growth of companies that are leading a disruptive change and invest across sectors and market caps.
Baroda BNP Paribas Mutual Fund on February 14, 2024, launched the Baroda BNP Paribas Innovation Fund, focusing on companies that are innovative in their business models, processes, and products. The New Fund Offer (NFO) opens today and will run until February 28, 2024. With a focus on innovative company diversification and alignment with investor interests, the fund aims to deliver a balanced portfolio devoid of sector or market cap biases, the mutual fund house said.
The minimum application amount is Rs. 5,000 and in multiples of Rs. 1 thereafter. For SIP the minimum amount is Rs 500 in multiples of Rs. 1If more than 10 per cent units of the scheme are redeemed or switched out, within 1 year from the date of allotment, an exit load of 1 per cent will apply.
The fund's objective is to provide investors with exposure to the dynamic realm of innovation India's innovation landscape is thriving, fueled by rising per capita GDP, changing consumer habits, a burgeoning youth population, evolving consumer preferences, and a strong government push. The fund seeks opportunities across various sectors such as manufacturing and space exploration, that have seen a boost with projects like Chandrayaan and Vande Bharat. Additionally, the transition towards cleaner technology and increased digital and internet contribute to this momentum, the fund house claims.
Baroda BNP Paribas Innovation Fund primarily targets three categories of innovative companies: digital natives leading innovation, transformers providing technical support, and legacy companies that are early adopters of technology.
The fund targets investments in companies exhibiting sustainable competitive advantages, robust management quality, and growth potential at reasonable valuations. The fund aims to provide a diversified portfolio devoid of sector or market cap bias, ensuring prudent investment strategies aligned with investor interests.
Suresh Soni CEO, of Baroda BNP Paribas AMC, said, “The Baroda BNP Paribas fund will pick companies that are poised to transform industries and capitalise on shifting market trends. By supporting a diverse mix of legacy enterprises, digital natives, and transformers, the fund will strategically invest in firms that thrive on innovation across several sectors and market caps."