Baroda BNP Paribas Large and Mid Cap Fund has completed its four-year successful journey in the market, giving investors over 29% return on an annualised basis and 182% absolute returns since inception on September 4, 2020.
Baroda BNP Paribas Large and Mid Cap Fund, which seeks long-term capital growth through investments in both large cap and mid cap stocks, has comfortably beaten its benchmark BSE 250 Large Midcap total return index on returns across different time horizons.
Baroda BNP Paribas Large and Mid Cap Fund’s returns over 1, 3 and 4 years
The scheme has grown by 49.78% in the last one year against 40.31% delivered by BSE 250 Large Midcap total return index. Its three-year return was 22.04% against the benchmark’s 18.16%. The fund has earned annualised return of 29.84% since its inception four years back in September 2020. In these 4 years, the benchmark has grown by 26.27%.
Baroda BNP Paribas Large and Mid Cap Fund SIP
A monthly SIP of Rs 10,000 since inception of the scheme would have grown to be worth Rs 8.51 lakh on August 31, 2024.
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The 4-year-old scheme has delivered returns that exceed the category average of its peer group while maintaining a beta lower than the benchmark. This means, the scheme has offered better downside protection during market slumps while beating the benchmark during bullish periods. Systematic investment plan (SIP) investors have seen returns of 53% over the past year and 32.04% since the fund’s inception.
Baroda BNP Paribas Large and Mid Cap Fund investment strategy
The scheme strategically invests a minimum of 35% each in large-cap and mid-cap stocks, while opportunistically deploying the balance in small-cap stocks and cash, ensuring a balanced exposure to established and emerging companies.
The Baroda BNP Paribas Large & Mid Cap Fund gives investors exposure to established and emerging companies that may be leaders in niche markets or may become the potential large caps of tomorrow. Since 2006, has seen the market move in phases; some where large caps do well and others where it’s the turn of mid-caps to shine. The fund outperformance vs the benchmark over both 1 and 3-year periods vindicates the premise that stock selection is the key to Alpha.
The benchmark index’s 250 companies are well diversified across sectors, allowing the fund manager to construct an optimized, risk-adjusted portfolio. This diversity helps balance the fund’s exposure to various economic and sectoral cycles, offering investors a robust investment solution.
The fund house employs a combination of a top-down approach for sectoral calls and a bottom-up approach for stock selection, aiming to build a diversified portfolio of 40-60 stocks. “In large caps, the investment team focuses on high-quality stocks at reasonable prices, while in mid-caps, they target high-growth and high-potential return opportunities,” the AMC said in its statement.