NFO alert: Empower your child’s dream with Baroda BNP Paribas Children’s Fund
Baroda BNP Paribas Children’s Fund is a goal-oriented mutual fund to help parents secure their child's future.
As parents, securing a bright future for your child often tops the list of priorities. However, skyrocketing education costs and inflation can pose significant financial challenges. Baroda BNP Paribas Asset Management India Pvt Ltd (Baroda BNP Paribas AMC) aims to address this with the launch of Baroda BNP Paribas Children’s Fund, a solution-oriented equity mutual fund designed specifically to help parents save for their children’s future.
The New Fund Offer (NFO) opens for subscription on December 6, 2024, and closes on December 20, 2024.
Key Features of Baroda BNP Paribas Children’s Fund
- Goal-Oriented Approach: A solution-oriented scheme designed to accumulate wealth for children’s education and other future needs.
- Lock-In Period: A 5-year lock-in or until the child reaches 18 years of age (whichever is earlier), encouraging disciplined and long-term investing.
- Investment Strategy: Allocates at least 80 per cent of assets to equities, combining sectoral and stock-specific strategies for growth potential.
- Flexibility: Offers both lump-sum and SIP options to suit varied investor needs.
- Benchmark: The scheme is benchmarked against the Nifty 500 Total Return Index to provide a diversified and growth-focused portfolio.
Fund Details of Baroda BNP Paribas Children’s Fund
- NFO Dates: December 6, 2024 to December 20, 2024
- Equity Allocation: At least 80 per cent in equity and related securities
- Fund Manager: Pratish Krishnan
- Benchmark Index: Nifty 500 Total Return Index
- Lock-In Period: 5 years or until the child turns 18 (whichever is earlier)
Management Comments
Suresh Soni, CEO of Baroda BNP Paribas AMC, highlighted the significance of this fund: "As a goal-oriented solution scheme, this fund addresses the crucial question on many parents’ minds: ‘Have we saved enough for our child’s future?’ It’s our endeavour to offer a credible, growth-oriented investment option that grows with the child and helps fulfil the parents’ dreams for their children.”
He further emphasized the impact of rising education costs: "At projected inflation rates, an engineering degree costing Rs 6 lakh today could reach Rs 28 lakh in 20 years. With SIPs starting at Rs 9,000, parents can aim to accumulate Rs 1 crore over 20 years, helping to achieve a secure future for their child."
Should You Invest?
This fund is a compelling option for parents seeking to plan ahead for their child’s education or other financial goals. The following factors make it an attractive choice:
- Inflation-Proof Strategy: With education inflation at 11 per cent annually, this fund can help bridge the financial gap.
- Long-Term Discipline: The lock-in period ensures disciplined investing, leveraging the power of compounding.
- Growth Potential: A significant equity allocation provides the opportunity for wealth creation over time.
However, investors should evaluate their risk tolerance as the fund is equity-focused, making it subject to market volatility. Those with a long-term investment horizon and clear financial goals for their children may find this scheme a perfect fit.
Investing in your child’s future is one of the best gifts you can give them. With Baroda BNP Paribas Children’s Fund, parents now have a structured and goal-oriented way to save, ensuring they are well-prepared for the rising costs of education and other milestones. Start planning today to empower your child’s dreams tomorrow.
Disclaimer: The article is for informational purposes only and not investment advice.