The new fund offer of the scheme is open for subscription and will close on May 31.
The scheme will be managed by Shiv Chanani. The scheme will be benchmarked against the Nifty 500 Index.
The investment objective of the scheme is to achieve long-term capital growth by investing in a diversified portfolio of companies selected using principles of value investing. The scheme would identify mispriced opportunities between the intrinsic value and the prevailing market price. To identify these opportunities the fund would look for stocks that trade at a discount to the overall market, their own historical average valuations, or relative to their fundamental valuations.
The scheme will invest 65-100% in equity & equity-related instruments, 0-35% in debt & money market instruments, 0-10% in units issued by REITs & INvITs, and units of mutual fund schemes.
“At Baroda BNP Paribas AMC, we have a strong investment culture backed by a disciplined framework, seasoned team, and robust processes. In our new fund, Baroda BNP Paribas Value Fund we aim to identify investment opportunities where stocks are available at a discount to their intrinsic value. These opportunities can be across stocks, sectors, and market caps. To manage risk, we have a robust margin of safety framework:- Margin of safety in balance sheet, in earnings, and in valuation represent our ‘3 S Framework,” says Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund.
The scheme is suitable for long-term investors who are looking to create long-term wealth by investing in value stocks with an adequate margin of safety and looking for diversification from growth-oriented portfolios. The scheme aims to benefit from the potential earnings growth as well as the valuation re-rating. The scheme will follow a unique investment approach that focuses on picking value opportunities available at the market, sector, and stock level.
