The New Fund Offer (NFO) will open for subscription on September 2 and close on September 15. Investors can participate with a minimum investment of ₹500 per month through a Systematic Investment Plan (SIP).
According to the fund house, conglomerates account for some of India’s most valuable enterprises and benefit from diversified revenue streams, easier access to capital, and strong brand equity.
Sanjay Chawla, Chief Investment Officer – Equity at Baroda BNP Paribas Asset Management India, said, “The NFO of our Business Conglomerates Fund will allow investors to own a piece of multi-generational conglomerates with listed businesses in India. Conglomerates benefit from diversified revenue streams and brand strength, which provides competitive advantage to any new business they start.”
The scheme will benchmark against the BSE Select Business Groups Index and will invest in at least four conglomerate groups, with single group exposure capped at 25% of net assets.
The fund will be jointly managed by Jitendra Sriram, Senior Fund Manager, and Kushant Arora, Fund Manager and Research Analyst.
Commenting on the investment case, Sriram noted, “Conglomerates are also benefiting from corporate actions such as demergers to drive value unlocking due to global refocussing, family splits or inter-generational transitions. These trends further strengthen the case for investing in such businesses.”
The new scheme adds to Baroda BNP Paribas Mutual Fund’s existing portfolio of equity, hybrid, debt, and overseas fund of fund categories.
