Baroda BNP Paribas Mutual Fund launches Baroda BNP Paribas Nifty Bank ETF

Baroda BNP Paribas Mutual Fund launches Baroda BNP Paribas Nifty Bank ETF, an open-ended scheme replicating/tracking the Nifty Bank Total Returns Index.

The scheme's new fund offer (NFO) is open for subscription and will close on June 14. The scheme will reopen for sale and repurchase within five days from the date of allotment.

The investment objective of the scheme is to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty Bank Total Returns Index before expenses, subject to tracking errors, fees and expenses.


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The proposed creation unit size for Baroda BNP Paribas Nifty Bank ETF is 50,000 units. The Exchange Traded Fund’s (ETF) units will be issued in dematerialized form and will be available for trading on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

The passive scheme is benchmarked against the Nifty Bank Total Returns Index. The scheme will be managed by Neeraj Saxena.

The minimum investment amount is Rs 5,000 and in multiples of Re 1 thereafter. The maximum total expense ratio (TER) permissible under Regulation 52 (6) (c) is upto 1%.

The will allocate 95-100% of its assets in equity and equity-related securities of companies constituting the Nifty Bank Index, and 0-5% in money market instruments and units of liquid scheme and cash and cash equivalents.

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"We are excited to offer the Baroda BNP Paribas NIFTY BANK ETF as a new investment opportunity that provides investors with a simple, cost-effective way to gain exposure to the Indian banking sector, which plays a pivotal role in shaping the India growth story. The pivotal Indian banking sector has shown robust growth and is well placed to continue its upward trajectory as a leading sector for our economy," said Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund.

The scheme is suitable for investors seeking long-term capital appreciation and want an exchange-traded fund that aims to provide returns that closely correspond to the returns provided by the Nifty Bank Index, subject to tracking error.