Investing in India's Booming Manufacturing Sector with Baroda BNP Paribas Manufacturing Fund
Baroda BNP Paribas Manufacturing Fund aims for long-term capital growth by investing in India's manufacturing sector. Invest now for growth.
The Baroda BNP Paribas Manufacturing Fund, launched on June 10, 2024, by Baroda BNP Paribas Mutual Fund, targets long-term capital growth by investing in the manufacturing sector of India. This open-ended mutual fund offers investors an opportunity to capitalize on the growth potential of sectors such as railways, roads, defence, and green energy.
Fund Details
The Baroda BNP Paribas Manufacturing Fund primarily invests in equity and equity-related securities of companies engaged in manufacturing, with a minimum investment requirement of Rs 1000. The fund is open-ended, allowing investors to enter and exit at their convenience. The offer to invest in this new fund closes on June 24, 2024.
Why Invest in the Manufacturing Theme of India?
India's manufacturing sector is witnessing significant capital expenditure (capex) across various critical areas. The country is boosting its infrastructure with projects like high-speed trains, road network expansions, and the development of renewable energy sources. Additionally, urban infrastructure, including metro networks and airports, is expanding rapidly. These initiatives present substantial investment opportunities.
Central & State Capex Trends
India's focus on strengthening core sectors like railways, ports, and highways is evident. The government plans to modernize rail infrastructure, including the introduction of advanced trains like Bullet and Vande Bharat. Moreover, significant investments are being made in road expansion and digitization to enhance efficiency and safety.
Urban Infrastructure Development
India's aviation market is ranked third globally, with plans to develop 100 airports by 2024 under the Regional Connectivity Scheme (RCS). The government is committed to investing in new terminals, modernizing existing facilities, and strengthening runways to support this growth.
Green Energy Initiatives
India aims to achieve a target of 500GW of green energy by 2030, driving substantial investments in transmission and distribution. This transition is also influencing the automobile sector, which is shifting towards electric and fuel cell technologies.
Defence Capex and Self-Reliance
The Indian defence sector is poised for growth with a significant domestic procurement opportunity valued at USD100-120 billion over the next few years. The government's emphasis on self-reliance is creating opportunities for domestic manufacturers.
Peer Schemes
|
Scheme Name
|
AUM (Crore)
|
Expense Ratio (%)
|
Since Launch Ret (%)
|
|
ICICI Prudential Manufacturing Fund
|
3882.89
|
1.9
|
24.03
|
|
Kotak Manufacture in India Fund
|
1933.15
|
2.02
|
29.11
|
|
ABSL Manufacturing Equity
|
950.24
|
2.33
|
12.67
|
|
quant Manufacturing Fund
|
651.73
|
2.32
|
58.93
|
|
Axis India Manufacturing
|
4683.25
|
1.83
|
31
|
|
Canara Robeco Manufacturing
|
1241.89
|
2.1
|
18.46
|
Data As of June 7, 2024
Fund Management and Strategy
The Baroda BNP Paribas Manufacturing Fund is managed by experienced professionals like Jitendra Sriram and Miten Vora, who have extensive expertise in equity markets. The fund aims to achieve long-term capital appreciation by focusing on Large-Cap, Mid-Cap, and Small-Cap companies in the manufacturing theme.
Conclusion The Baroda BNP Paribas Manufacturing Fund is well-positioned to benefit from India's expanding manufacturing sector and infrastructure development initiatives. With competitive expense ratios and an experienced management team, the fund offers investors an opportunity to participate in the country's growth story.
Disclaimer: The article is for informational purposes only and not investment advice.
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