New fund launch: Baroda BNP Paribas mutual fund launches dividend yield fund
All you need to know about Baroda BNP Paribas Dividend Yield Fund NFO.
The Baroda BNP Paribas dividend Yield Fund, an open-ended equity scheme under Baroda BNP Paribas Mutual Fund was launched on August 22, 2024. This scheme focuses on investing primarily in dividend-yielding equities and related instruments to achieve capital growth over a medium to long-term horizon. But do remember that there is no guarantee that the desired returns will be realised. Investors can start with a minimum investment of Rs 1,000. The new fund offer will close on September 5, 2024.
Baroda BNP Paribas Dividend Yield Fund Facts and Features
- Focus on Cash Flow and Shareholder Alignment
The fund emphasizes investing in companies with robust free cash flow, which often correlates with positive share price trends. Additionally, it prioritizes companies where management's interests align with those of minority shareholders, demonstrated by a consistent history of dividend payouts.
- NFO Period
The new fund offer (NFO) is open for subscription from August 22 to September 5, 2024.
- Investment Objective
The scheme seeks to invest in companies with stable and predictable cash flows, led by management teams committed to rewarding shareholders through regular dividends and buybacks. The fund's strategy involves selecting growth-oriented companies that also focus on providing consistent returns to investors.
- Minimum Investment Requirements
The minimum initial investment is set at Rs 1,000, with additional investments in multiples of Rs 1. For daily, weekly, or monthly SIPs, the minimum investment starts at ₹500, also in multiples of ₹1.
- Fund Manager
Shiv Chanani will manage this new fund, bringing his extensive experience to guide the investment strategy.
- Exit Load Structure
The scheme offers flexibility with its exit load structure. No exit load applies if up to 10 per cent of the units are redeemed or switched out within one year from the allotment date. For redemptions or switches exceeding this limit within the first year, an exit load of 1 per cent applies. After one year from the date of allotment, no exit load is charged.
Benchmark
The fund’s performance will be measured against the Nifty 500 TRI benchmark.
Funds Allocation
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Types of Instruments
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Minimum Allocation (% of Net Assets)
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Maximum Allocation (% of Net Assets)
|
|
Equity and Equity-related Instruments of Dividend Yielding companies
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65
|
100
|
|
Equity and Equity related instruments of any other company other than above
|
0
|
35
|
|
Units issued by REITs & INVITs
|
0
|
10
|
|
Debt & Money Market instruments and Fixed Income Derivatives
|
0
|
35
|
|
Units of Mutual Funds (Domestic Schemes)
|
0
|
10
|
Source: Scheme Information Document
Should you invest in this fund?
This NFO is ideal for investors seeking long-term capital appreciation and looking to invest mainly in equity and equity-related instruments of dividend-yielding companies.
Disclaimer: The article is for informational purposes only and not investment advice.