NFO Alert: Baroda BNP Paribas Mutual Fund launches Baroda BNP Paribas Business Conglomerates Fund

Baroda BNP Paribas Mutual Fund has launched Baroda BNP Paribas Business Conglomerates Fund, a fund that is designed to help investors tap into India's iconic business groups by offering a diversified portfolio focusing on investments in listed companies that are a part of business conglomerates.

The new fund offer or NFO of the fund will open for subscription on September 2 and closes on September 15. The scheme will re-open for continuous sale and repurchase within five business days from the date of allotment of units under NFO.

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The minimum amount for lumpsum investment is Rs 1,000 and in multiples of Re 1 thereafter. Investors can own a part of India’s most iconic business groups while relying on professional fund managers and analysts to pick the gems in their portfolios with a minimum SIP amount of Rs 500 and in multiples of Re 1 thereafter. Conglomerates form the backbone of India’s economy, accounting for some of the largest and most valuable enterprises.

The investment objective of the Scheme is to achieve long term capital appreciation by investing in equity and equity related securities of companies that are part of business conglomerates in India.

“The NFO of our Baroda BNP Paribas Business Conglomerates Fund will allow our investors to own a piece of multi-generational conglomerates with listed businesses in India. In general conglomerates benefit from diversified revenue streams and easier access to capital and a strong brand reputation and customer trust that provides any new business they start, a competitive advantage at the outset itself” said Sanjay Chawla, Chief Investment Officer – Equity, Baroda BNP Paribas Asset Management.

The scheme will benchmark against the BSE Select Business Groups Index and invest in at least four conglomerate groups, with single group exposure capped at 25% of net assets. The fund will be managed by Jitendra Sriram - Senior Fund Manager and Kushant Arora - Fund Manager & Research Analyst.

“Conglomerates are also benefiting from corporate actions such as demergers to drive value unlocking due to global refocussing, family splits or inter-generational transitions. All of these further improve the investment case for such businesses,” said Jitendra Sriram, Fund Manager of the scheme.

With this launch, Baroda BNP Paribas MF enables investors to own a slice of India’s legendary conglomerates—making wealth creation accessible, structured, and professionally managed.

The fund will allocate 80-100% in equity and equity related instruments of companies that are part of business conglomerates in India, 0-20% in equity and equity related instruments of companies other than that are part of business conglomerates in India, 0-20% in debt and money market instruments, 0-10% in units of mutual funds (domestic schemes), and 0-10% in units issued by REITs and InviTS.

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The scheme is an open-ended active thematic equity scheme that shall invest primarily in equity and equity related instruments constituting Conglomerate theme. The scheme will have a diversified portfolio focusing on investments in companies from leading diversified conglomerates. Conglomerates will be identified as groups based in India, led or controlled by promoters, and comprising at least two listed companies in different sectors or industries.

The fund is suitable for investors who are seeking long-term wealth creation and want investment predominantly in equity and equity related securities of companies that are part of business conglomerates in India.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)