Baroda BNP Gilt Fund turns 23; AUM tops Rs 1,500 crore with 4X growth for investors

Baroda BNP Paribas Gilt Fund, a flagship fixed income offering by Baroda BNP Paribas Mutual Fund, has completed 23 years of launch in the market, along with a dual milestone of surpassing the Rs 1,500 crore in Assets Under Management (AUM) mark.

Since its inception, the Baroda BNP Paribas Gilt Fund has delivered consistent long-term returns, transforming an initial investment of Rs 10,000 into Rs 41,919.60 as of March 31, 2025 — an over four-fold increase.

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Over the past 12 months alone, the scheme’s regular plan has provided an impressive 9.61% return, making it a preferred choice for investors seeking low-risk, long-duration debt investments with capital appreciation potential.

Managed by Gurvinder Singh Wasan and Prashant Pimple, the scheme primarily invests in high-quality, risk-free government securities and State Development Loans (SDLs). The fund takes strategic duration calls to capture potential gains from expected RBI interest rate cuts, making it an ideal option for investors looking to benefit from a falling interest rate environment, according to a press release by the fund house.

With the latest RBI monetary policy changing its stance to accommodative from neutral, schemes such as these are well-positioned to benefit from the capital appreciation that will result from the RBI cutting repo rates.

“We expect to run a portfolio duration close to the duration of the benchmark 10-year G-Sec security. This is based on our view that rates can come down lower given inflation-adjusted real rates are still in the positive zone,” said Prashant Pimple, Chief Investment Officer Fixed Income, Baroda BNP Paribas Asset Management (India)

“The portfolio of the Baroda BNP Paribas Gilt Fund is positioned to actively benefit from the spreads between G-Secs and SDLs as well as from our expectations of softening of the yield curve led by positive fundamentals for India’s bond markets,” he added.

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The fund maintains zero default risk, ensuring stable and secure returns. Its growing AUM and consistent performance reaffirm its position as one of the best gilt mutual funds in India.