Baroda BNP Paribas Mutual Fund on June 10, 2024, launched Baroda BNP Paribas Manufacturing Fund a thematic equity fund that seeks to invest in companies that directly engage in manufacturing activity. The fund also invests in a diversified portfolio of manufacturing-related sectors like the auto and auto ancillaries, capital goods, healthcare, chemicals, oil and gas and consumable fuel.
NFO Details
The NFO runs from June 10, 2024, to June 24, 2024. The minimum lump sum investment is Rs 1,000, the minimum SIP investment is Rs 500 and in multiples of Rs 1 there after. As much as one per cent exit load is applicable if over 10 per cent of units are redeemed or switched out within one year from the date of allotment.
The fund will also invest in new manufacturing plants and facilities, support the development of new-age technology solutions, offer allied services related to the entire manufacturing lifecycle, and be listed in India while having manufacturing facilities outside the country or vice versa.
Also read: Top 10 Mutual Funds For SIP In 2024
Investment Considerations
Government initiatives are significantly boosting the manufacturing sector, with a target to expand the manufacturing base from 17 per cent to 25 per cent of GDP. Several government schemes like Skill India, Atmanirbhar Bharat, and PLI schemes are providing technical and financial assistance to build in India.
Manufacturing in India is poised for more growth as major economies diversify away from China to avoid supply chain shocks.
Several other factors position India to become a leading manufacturing hub such as positive Foreign Direct Investment (FDI) flows and India's low manufacturing costs, combined with a large pool of educated young talent, make India a competitive option for global companies.
Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund said, "The scheme offers a compelling investment opportunity as the manufacturing sector is poised for multi-decade growth fuelled by growing consumption, investments, exports, changing geopolitical dynamics and favourable government policy.” The scheme is benchmarked against Nifty India Manufacturing TRI which has provided 26 per cent and 23 per cent returns in 3 and 5 years respectively, as per the fund house.
