Baroda BNP Paribas Mutual Fund has launched the Baroda BNP Paribas Energy Opportunities Fund, an open-ended equity scheme aimed at exploring investment opportunities within India’s energy sector.
NFO Details
The Baroda BNP Paribas Energy Opportunities Fund NFO opened for subscriptions on January 21, 2025, and closes on February 4, 2025. This open-ended equity scheme, managed by Sanjay Chawla and Sandeep Jain, carries a high-risk profile and is benchmarked against the Nifty Energy TRI. The minimum investment amount for lump-sum subscriptions is Rs 1,000, in multiples of Re 1. SIPs need a minimum commitment of Rs 500 for daily, weekly, and monthly plans and Rs 1,500 for quarterly. Subsequent installments are expressed in multiples of Re 1.
According to the Baroda BNP Paribas Mutual Fund will allocate at least 80 per cent of its assets to equity and equity-related instruments of companies in the energy and allied sectors. Additionally, the fund may invest in equity and equity-related instruments of companies outside the energy and allied sectors, in debt and money market instruments, in units of domestic mutual fund schemes, and in units of REITs and InvITs. The objective of the Baroda BNP Paribas Energy Opportunities Fund is to provide investors with the opportunity to benefit from the growth of the energy sector as India progresses towards a developed economy.
Suresh Soni, CEO, Baroda BNP Paribas Asset Management India Pvt Ltd (AMC) said on the launch, “As India’s GDP is projected to grow by 1.9x times in the next 5 years, India’s demand for energy is also poised to grow 1.7x times. This Energy Opportunities Fund is positioned to unlock profitable investment opportunities for investors from the developments in India’s Energy sector."
Sanjay Chawla, Chief Investment Officer – Equity and Fund Manager for the scheme, said, "Energy is a broad investment theme, making up almost a third of the Nifty 500 index across various sectors. Our research shows that the Nifty Energy Total Return Index (Nifty Energy TRI) has a lower price-to-equity and price-to-book ratio than the Nifty 500, along with higher dividend yield and faster earnings growth."
Who Should Invest?
Baroda BNB Mutual Fund recommends this product for investors seeking long-term capital growth and primarily looking to invest in equity and equity-related instruments of companies in the energy sector. It is suitable for those who want to capitalize on growth opportunities in both conventional and renewable energy sectors and have a higher risk tolerance. Suresh also mentioned that this fund may be ideal for equity investors with a holding period of three years or more.
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