Baroda BNP Paribas MF launches Momentum 30 index fund: Who should invest

Scheme will follow passive strategy to leverage the top 30 momentum stocks from the Nifty 200 Total Return Index

Baroda BNP Paribas Mutual Fund has launched a new fund offer to capitalise on the "power of momentum investing", it said on Wednesday. The Baroda BNP Paribas Nifty200 Momentum 30 Index Fund, which opened for subscription on Wednesday, will track the NIFTY 200 Momentum 30 Total Returns Index.

Key features of new fund

- The fund will invest in a portfolio of 30 companies selected from the NIFTY 200 Index based on normalised momentum scores.

- It will combine the cost-efficiency of passive investing with the potential for outperformance through factor-based investing.

“Our Baroda BNP Paribas Nifty200 Momentum 30 Index Fund seeks to offer the best of both worlds – cost-efficiency of passive investing and the potential for outperformance by taking advantage of factor-based investing,” said Suresh Soni, chief executive officer of Baroda BNP Paribas AMC.

 

Here are details about the Baroda BNP Paribas Nifty200 Momentum 30 Index Fund

Nature of scheme: Open-ended scheme replicating/tracking the Nifty200 Momentum 30 Total Returns Index

Objective: The objective of the scheme is to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty200 Momentum 30 Total Returns Index before expenses, subject to tracking errors, fees, and expenses.

Benchmark: Nifty 200 Momentum 30 Total Return Index.

Fund manager: Neeraj Saxena.

NFO period: September 25, 2024 to October 9, 2024.

Asset Allocation: The scheme will allocate 95-100 per cent in equity and equity-related securities of companies constituting Nifty200 Momentum 30 Total Returns Index and 0-5 per cent in money market instruments & units of liquid scheme and cash and cash equivalents.

Exit Load: 0.2 per cent - if redeemed on or before 7 days from the date of allotment

Nil – If redeemed after 7 days from the date of allotment

Minimum application amount

During NFO:

Lump sum investment: Rs 1,000 and in multiples of Re 1 thereafter. There is no upper limit.

Ongoing basis: Lump-sum investment: Rs 1,000 and in multiples of Re. 1 thereafter.

SIP: (i) Daily, Weekly, Monthly SIP: Rs 500 and in multiples of Re. 1 thereafter,

(ii) Quarterly SIP: Rs 1500 and in multiples of Re. 1 thereafter.

Note: Allotment of units will be done after deduction of applicable stamp duty and transaction, if any.

Company suggestion on who should invest

Long-term investors who are looking for capital appreciation.

Investors seeking investments in equity and equity related securities replicating the composition of the Nifty 200 Momentum 30 Total Return Index with an aim to achieve returns of the underlying index, subject to tracking error.