NFO Alert: Baroda BNP Paribas to Launch Baroda BNP Paribas Energy Opportunities Fund

Baroda BNP Paribas is introducing its Energy Opportunities Fund, a sectoral and thematic equity scheme, focusing on India’s energy sector. The New Fund Offer (NFO) opens on January 21, 2025, and closes on February 4, 2025, with a minimum investment requirement of ₹1,000. The fund is for investors seeking exposure to energy-related industries.

Structure and Strategy

At least 80% of the fund’s assets will be allocated to energy-related companies, with diversification across equity-linked instruments, global securities, and REITs/InVITs, to cover different sectoral exposure. Additionally, investments may include money market instruments and corporate bonds.

Key Details

• Fund Managers: Sanjay Chawla and Sandeep Jain.
• Benchmark: NIFTY Energy TRI.
• Exit Load: 1% for redemptions exceeding 10% of the investment within one year.
• SIP Options: ₹500 for daily, weekly, or monthly SIPs, and ₹1,500 for quarterly SIPs.

The fund is intended for investors looking to diversify their portfolios by participating in India’s energy sector. It will be interesting to watch the sector’s long-term potential.

Investment Objective

The fund aims to generate capital appreciation by investing in equity and equity-related instruments of companies involved in activities such as exploration, production, distribution, transportation, and processing within the energy sector. The portfolio will include companies from both traditional energy sectors like oil and gas and emerging renewable energy segments.

Sectoral Coverage

The fund’s investments focus on different energy themes, including extraction (mining and oil exploration), production (oil refining and energy generation), transmission (power transmission, gas pipelines, and Power InVITs), distribution(power and gas distribution, oil marketing), and energy transition, targeting renewable energy companies, equipment manufacturers, and consultancy services.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.