Baroda BNP Paribas AMC has launched a new equity mutual fund Baroda BNP Paribas Children’s Fund, a scheme designed to help parents secure their child’s future.

Baroda BNP Paribas Asset Management India’s New Fund Offer (NFO) will be available for subscription from December 6-20, 2024.

Baroda BNP Paribas Children’s Fund key highlights:

The solution-oriented fund is benchmarked to the Nifty 500 Total Return Index and will be managed by Pratish Krishnan.

The investment in the scheme can be made both, by way of lump-sum and Systematic Investment Plan (SIP).

This scheme comes with a 5-year lock-in period or until the child reaches the age of majority, i.e. 18 years (whichever is earlier).

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“As a goal-oriented solution scheme, this fund addresses the crucial question on many parents’ minds: ‘Have we saved enough for our child’s future?’ It’s our endeavour to offer a credible, growth-oriented investment option that aims to grow with the child and helps fulfil the parents’ dreams for their children,” said Suresh Soni, CEO of Baroda BNP Paribas AMC.

“As a parent, we want the best for our children. But rising costs of education and extracurricular activities can be expensive. With education costs rising rapidly, it’s essential to plan ahead.”

The rising cost of education is a pressing concern for parents today, Soni said adding that “at projected inflation rates, say even an engineering degree costing Rs 6 lakh today could reach Rs 28 lakh in 20 years. Parents can leverage Systematic Investment Plans (SIPs) with step-up options to potentially accumulate Rs 1 crore in 20 years just by investing Rs 9,000 seeking to achieve their goals for a secure future for their child.”

Baroda BNP Paribas Children’s Fund will allocate at least 80% of net assets in the portfolio to equities and equity-related securities, using a comprehensive investment strategy that combines a top-down sectoral focus with a bottom-up stock-picking approach. This approach allows the fund to stay market cap and sector agnostic, aiming to maximize returns while managing risk.

The clear goal orientation and lock-in period helps investors to stay invested for long-term. This allows investors to harness the power of compounding, ultimately aiming to create wealth to fund their child’s dreams.