Baroda BNP Paribas Mutual Fund launches retirement fund

Baroda BNP Paribas Mutual Fund launches Baroda BNP Paribas Retirement Fund, an open-ended retirement solution-oriented scheme having a lock-in of five years or till retirement age (whichever is earlier).

The new fund offer or NFO of the scheme is open for subscription and will close on May 22. The scheme will open for continuous sale and repurchase within five business days from the date of allotment.

The primary investment objective of the scheme is to generate income and capital appreciation by investing in a diversified portfolio of equity and equity-related instruments and fixed-income instruments with a view to provide a retirement solution to investors.


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The scheme will be benchmarked against CRISIL Hybrid 35+65 - Aggressive Index. The scheme will be managed by Pratish Krishnan (equity investments), Mayank Prakash (debt investments), and Miten Vora (overseas investments).

The scheme will offer regular and direct plans with growth and IDCW options. The units purchased cannot be assigned/transferred/pledged/ redeemed/switched out until the completion of five years from the date of allotment of units under the scheme or till the retirement age of the unit holder (i.e. completion of 58 years), whichever is earlier.

The scheme offers the auto SWP facility on retirement (58 years of age). This facility aims to provide a regular inflow of money to investors (monthly or quarterly) by automatic redemption of units in a staggered manner after attainment of retirement age.

The auto SWP shall be either on a monthly or a quarterly frequency as mandated by the investors in the application form. In the case of monthly auto SWP, the systematic withdrawal amount shall be equal to 0.8% of the market value of the investment as on the date of completion of 58 years of age in the respective plan. In the case of Quarterly auto SWP, the systematic withdrawal amount shall be equal to 2.5% of the market value of the investment as on the date of completion of 58 years of age in the respective plan.

Investors will also be given an option to withdraw a flat amount with a minimum amount being Rs 1,000 and in multiples of Re 1 on a monthly basis and Rs 1,500 and in multiples of Re 1 thereafter on a quarterly basis.

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The minimum application amount for lumpsum investment is Rs 1,000 and in multiples of Re 1 thereafter. The minimum application amount for daily, weekly, and monthly SIP is Rs 500 and in multiples of Re 1 thereafter. For quarterly SIP, the minimum investment amount is Rs 1,500 and in multiples of Re 1 thereafter.

The scheme will invest 65-80% in equity and equity-related instruments, 20-35% in debt and money market instruments, and 0-10% in units issued by REITs and InvITs.