Baroda BNP Paribas Large Cap Fund: Delivering Over 17% Returns Since Inception

As Baroda BNP Paribas Large Cap Fund completes its 20-year journey on September 23, 2024, it’s a perfect time to look back and analyze how this large-cap fund has performed over the past two decades. Known for its focus on blue-chip companies and market leaders, the fund has proven to be a reliable investment vehicle, providing stability and impressive returns to its investors.

Investing in Market Leaders: The Core Strategy

Baroda BNP Paribas Large Cap Fund primarily invests in large-cap companies, which are often industry leaders with established business models and strong track records. These companies, commonly referred to as blue-chip stocks, are renowned for their ability to generate steady revenue and earnings over time. Unlike mid or small-cap companies, large-cap firms have the stability and resilience to weather market cycles, making them a safer choice for conservative investors.

The fund’s strategy revolves around investing in companies with proven growth potential, sound management, and strong fundamentals. By maintaining a well-diversified portfolio across various sectors, the fund aims to minimize risk while maximizing returns. This approach has allowed the Baroda BNP Paribas Large Cap Fund to stand out in the crowded field of large-cap mutual funds.

Impressive Returns Over the Years

Since its inception on September 23, 2004, Baroda BNP Paribas Large Cap Fund has delivered remarkable returns, significantly rewarding its investors. The fund boasts an impressive annualized return of 17.01% since inception, underscoring its ability to generate consistent long-term gains.

• 5-Year Performance: Over the last five years, the fund has delivered a return of 21%, highlighting its consistent performance even during volatile market conditions.
• 1-Year Performance: In the past year, the fund achieved a staggering return of 40.36%, showcasing its ability to capitalize on market opportunities and deliver strong short-term gains.

SIP Growth: A Testament to Long-Term Investing

A Systematic Investment Plan (SIP) in the Baroda BNP Paribas Large Cap Fund has proven to be a wealth generator for disciplined investors. A SIP of Rs 10,000 per month since the fund’s inception in 2004 would have grown to an impressive Rs 1.33 crore, with an internal rate of return (XIRR) of 15.14%.

For those who started a SIP a decade ago, investing Rs 10,000 per month would have yielded Rs 29.52 lakh, achieving an XIRR of 17.29%. These figures highlight the power of compounding and the benefits of sticking to a long-term investment strategy.

Lump Sum Investment: From Rs 1 Lakh to Rs 23 Lakh

Investors who opted for a lump sum investment of Rs 1,00,000 at the fund’s inception have seen their investment grow to Rs 23.09 lakh. This translates to a compound annual growth rate (CAGR) of 17.01%, reflecting the fund’s consistent performance and its ability to enhance investor wealth over the long haul.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.