Baroda BNP Paribas MF launches its Multi Asset Active Fund of Funds NFO closes on May 26

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Chandigarh: Baroda BNP Paribas AMC has launched Baroda BNP Paribas Multi Asset Active Fund of Funds (FOF). The fund proposes to invest across debt, equity and gold schemes. The NFO opens on May 15 and closes on May 26.

The fund will invest majority of corpus in debt funds by investing minimum of 55% of the total corpus in Baroda BNP Paribas Short Duration Fund.

The fund will also invest a minimum of 15% each in Baroda BNP Paribas Large Cap Fund and Baroda BNP Paribas Gold ETF.

Prashant Pimple and Pratish Krishnan, who each bring more than 25 and 24 years of experience respectively, in managing fixed income and equity fund strategies will co-manage this scheme.

“The mix of different asset classes in this single-stop solution provides diversification of low correlated asset classes, leading to potentially better risk-adjusted returns — especially valuable for conservative investors. Investors in this scheme will benefit from an active asset allocation with a diversified exposure that aims to deliver stability and growth.” said Prashant Pimple, CIO Fixed Income, Baroda BNP Paribas AMC.

Despite having high exposure to debt instruments, the fund will offer a concessional long-term capital gains (LTCG) tax rate of 12.5% on investments held for more than two years, while short-term gains are taxed at slab rates, providing better post-tax returns for long-term savers.