The new fund offering of BNP Paribas Balanced Fund, which closed on March 31, 2017 has raised Rs 2.45 billion. The scheme opened for re-investing based on daily net asset value (NAV).
This is the first balanced fund of BNP Paribas Mutual Fund and completes the product basket and while offering all key types of schemes for investors with different risk profiles. This is the fourteenth fund by BNP Paribas Mutual Fund since its foray into Indian market. The total average assets under management (AUM) of BNP Paribas Mutual Fund currently stand at Rs 59.77 billion. This is in addition to the USD 1.04 billion (as of Feb. 28, 2017) managed and advised by the company through its Offshore Advisory for international investors.
BNP Paribas Balanced Fund offers long-term wealth creation opportunity through a combination of equity, arbitrage and debt asset classes to investors. It would have exposure ranging from 30-60% in equity and equity-related instruments, 5-10% in equity arbitrage and 30-60% in debt, money market instruments and liquid funds. The objective set for BNP Paribas Balanced Fund is to improve risk adjusted returns through diversification across these asset classes. The Scheme offers two plans: BNP Paribas Balanced Fund - Regular Plan and BNP Paribas Balanced Fund - Direct Plan. Each plan has two options: Growth Option and Dividend Option. BNP Paribas Balanced Fund is positioned between MIP and Equity fund from a risk-reward perspective.
Commented Sharad Sharma, MD & CEO, BNP Paribas Asset Management India, ''We thank all the investors and distributors for having placed their trust in us by giving overwhelming response to this new fund offering.''
Anand Shah, Deputy CEO and Chief Investment Officer, BNP Paribas Mutual Fund further explained that, ''BNP Paribas Balanced Fund for equity uses in house B.M.V model which helps us in identifying companies that has better earnings growth. As a strategy for equity, the Scheme will follow a bottom-up approach for stock-picking and choose companies across sectors and the Scheme will primarily focus on companies that have demonstrated characteristics such as market leadership, strong financials and quality management. For fixed income, the team actively manages the debt portion of the portfolio with a view to generate reasonable income over time. Given prevailing market conditions, we intend to target the shorter end of the yield curve.''