Baroda BNP Paribas Mutual Fund has introduced a new equity index fund, the Baroda BNP Paribas Nifty Midcap 150 Index Fund.
The New Fund Offer (NFO) opens for subscription on October 14 and will be available until October 28, 2024.
This fund is passively managed and comes with low costs, offering investors a chance to invest in midcap stocks that have high growth potential.
Start Investing with Just ₹1,000
Investors can start investing in the Baroda BNP Paribas Nifty Midcap 150 Index Fund with a minimum of ₹1,000.
According to the asset management company, this fund offers a more diversified portfolio across various sectors compared to the NSE Nifty 50 index, reducing the risk of investing in a single sector.
The fund tracks the performance of the Nifty Midcap 150 Total Return Index, which includes midcap companies that may grow into large-cap firms in the future.
Who Should Invest?
This fund is ideal for investors seeking long-term capital growth.
By investing, you can gain exposure to sectors such as capital goods, chemicals, real estate, and textiles, which are either not present or under-represented in the Nifty 50 index.
Suresh Soni, CIO of Baroda BNP Paribas Asset Management India Pvt Ltd, mentioned that, based on the S&P Index vs Active report, 75% of mid-cap
and small-cap funds have underperformed their benchmarks in the past 10 years.
He highlights that the NFO provides a low-cost, passive investment strategy aimed at delivering returns similar to the Nifty Midcap 150 Index while reducing the risk of underperformance and offering better growth opportunities.
