Everything You Need to Know About Baroda BNP Paribas Retirement Fund - NFO

Everything You Need to Know About Baroda BNP Paribas Retirement Fund - NFO

Planning your retirement early in life is one of the best things you can do for your future self. Investing your money in a retirement fund helps you save and provides a source of income during your retirement years. The Baroda BNP Paribas Retirement Fund – NFO meets these needs perfectly. Keep reading to learn all about this Retirement Fund.

Baroda BNP Paribas Retirement Fund - NFO Overview

The Baroda BNP Paribas Retirement Fund is designed for individuals aiming to generate income after retirement. The fund has a lock-in period of five years or until the investor reaches retirement age, whichever comes first.

Starting on May 8, 2024, and concluding on May 22, 2024, the fund invests in a diversified portfolio, including equity and equity-related instruments as well as fixed income instruments, to offer comprehensive retirement solutions to investors. This scheme carries a moderate risk level.

Fund Overview

The Baroda BNP Paribas Retirement Fund-NFO holds an AUM totalling Rs. 36,768.76 crores. This fund has a stamp duty of 0.005% (From July 1st 2020). For investors looking to invest, the minimum investment required is an SIP of Rs 500.

Start Date	8 May 2024
End Date	22 May 2024
VRO rating	-
Expense ratio	NA
Exit load	Nil
AUM (Fund size)	Rs. 36,768.76 Cr.
Lock-in	5 Years
Stamp Duty	0.005% (From July 1st 2020)
Benchmark (Tier 1)	CRISIL Hybrid 35+65 - Aggressive Index
Min. investment	SIP ₹500
Risk	Moderate

 

The Objective of the fund

The primary investment objective of the scheme is to generate income and capital appreciation by investing in a diversified portfolio of equity-related instruments and fixed-income securities, aiming to provide a retirement solution for investors.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows-

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)	Risk Profile
Equity & Equity related instruments	65	80	Very High
Debt & Money Market  instruments	20	35	Low to Medium
Units issued by REITs & InVITs	0	10	Medium to High

 

 

Peers of Baroda BNP Paribas Retirement Fund - NFO

Hybrid, Aggressive Hybrid Funds	1Y Return	3Y Return	Fund Size (Cr)
Quant Absolute Fund Direct-Growth	38.6%	21.8%	2,024.53
ICICI Prudential Equity and Debt Fund Direct-Growth	38.7%	25.1%	34,733.09
Edelweiss Aggressive Hybrid Fund Direct-Growth	34.3%	21.8%	1,564.25
Franklin India Equity Hybrid Fund Direct-Growth	32.0%	17.3%	1,781.57
Canara Robeco  Equity Hybrid Fund Direct-Growth	25.5%	15.8%	10,077.44

Risk Factors in Such Funds

• Investments in equity and equity-related instruments are volatile and subject to daily price fluctuations.

• The performance of the scheme may be negatively impacted if one or more companies experience declines or stagnation.

• Settlement periods may be significantly extended in certain cases.

• The value of fixed-income securities fluctuates based on changes in perceived credit and counterparty risk.

• Lower levels of liquidity can affect individual securities or the entire market.

• Interest rates may be influenced by various factors, including monetary policy, discount rates, inflation, and other economic events.

Past Performance of Aggressive Hybrid Funds Direct-Growth 

Hybrid, Aggressive Hybrid Funds	NAV (Rs)	Returns since inception	Return/Risk
Quant Absolute Fund Direct-Growth	440.01	18.57%	Generated the highest return amongst Aggressive Hybrid funds in the last 10 years.
ICICI Prudential Equity and Debt Fund Direct-Growth	379.01	18.19%	Generated the highest return amongst Aggressive Hybrid funds in the last 10 years.
Edelweiss Aggressive Hybrid Fund Direct-Growth	62.6	14.88%	Generated the highest return amongst Aggressive Hybrid funds in the last 10 years.
Franklin India Equity Hybrid Fund Direct-Growth	272.72	15.07%	Performing poorly
Canara Robeco  Equity Hybrid Fund Direct-Growth	354.34	15.02%	Every unit of risk this fund takes produces 20% more returns.

 

Baroda BNP Paribas Retirement Fund NFO - Who can invest 

This fund is ideal for individuals seeking to generate regular income after retirement. It allocates investments to both equity and equity-related instruments as well as fixed income instruments, allowing investors to benefit from a diversified portfolio with moderate risk.

Baroda BNP Paribas Retirement Fund NFO - Growth Fund Managers:

• Mr Pratish Krishnan

• Mr Mayank Prakash

• Mr Miten Vora

 

 

Conclusion

The Baroda BNP Paribas Retirement Fund helps investors save for retirement by offering a mix of growth potential, income, and professional management. However, it's essential to understand that every investment is subject to market risk. Investors should carefully assess their risk tolerance and investment objectives before deciding to invest in NFO.