Baroda BNP Paribas Mutual Fund has launched a new scheme, the Baroda BNP Paribas Energy Opportunities Fund, which will be available for subscription from 21 January 2025 to 4 February 2025.
This fund focuses on the growing energy sector in India and aims to provide investors with the opportunity to benefit from the country’s increasing energy demand. The scheme is benchmarked to the Nifty Energy TRI.
Investment Details and Options
The minimum investment in the fund is ₹1,000, with additional investments allowed in multiples of ₹1.
Investors can choose from daily, weekly, or monthly Systematic Investment Plans (SIPs) with a minimum of ₹500, or opt for quarterly SIPs starting at ₹1,500.
The fund will be managed by Sanjay Chawla and Sandeep Jain. An exit load of 1% will be charged if the investment is redeemed or switched out within a year; otherwise, there is no exit load.
Focus on Energy-Related Companies
The Baroda BNP Paribas Energy Opportunities Fund plans to invest at least 80% of its assets in energy-related companies.
These include businesses in mining, oil exploration, oil refining, energy generation, power transmission, gas distribution, and energy services.
The focus is on capturing opportunities in India’s expanding energy sector as the country’s economy grows.
Who Should Invest?
This fund is ideal for investors who:
1) Want to invest in energy companies.
2) Are interested in participating in India’s growth story.
3) Seek to diversify their portfolios with investments in emerging sectors.
The fund is designed for long-term equity investors, and it is recommended to hold investments for at least 3 years.
India’s Growing Energy Demand
Suresh Soni, CEO of Baroda BNP Paribas Asset Management India Pvt. Ltd, highlighted that energy is crucial for national prosperity.
As India’s economy grows, so does its energy demand, which is expected to rise 1.7 times in the next 5 years. The fund aims to capitalize on these opportunities within the energy sector.
Strong Growth in Energy Consumption
India’s energy consumption is expected to increase significantly, following patterns seen in other fast-growing economies like China and South Korea.
The demand spans various sectors, including households, agriculture, industry, and infrastructure, driven by a growing middle class and changing lifestyles.
Sanjay Chawla, the fund manager, noted that energy is a broad investment theme, with the Nifty Energy TRI outperforming the Nifty 500 TRI over time.
The fund will focus on both traditional energy sources and emerging energy transitions to meet India’s long-term needs.
