Baroda BNP Paribas Asset Management India Private Limited (Baroda BNP Paribas AMC) has launched its new fund offering (NFO), Baroda BNP Paribas Children’s Fund. It is a solution oriented goal based, equity mutual fund scheme, designed to help parents secure their children’s future or plan financially for their children. The New Fund Offer is opening for public subscription on 6 December 2024 and will close on 20 December 2024. The benchmark of the scheme is Nifty 500 Total Return Index and it will be managed by Pratish Krishnan.
Suresh Soni, CEO, Baroda BNP Paribas AMC, said that a big question faced by many parents is whether we have saved enough for our child’s future.
NFO Date: Open for public subscription from 6th to 20th December 2024
Investment Strategy: At least 80% in equities and equity related securities
Benchmark: Nifty 500 Total Return Index Goal-oriented: To help parents save for children’s education and other future needs
As a goal based solution plan, Baroda BNP Paribas Children’s Fund can easily solve this problem for such parents. Our endeavor is to provide a reliable, growth-oriented investment option, aimed at helping parents achieve growth as their children grow and at the same time fulfill their children’s dreams. As parents, everyone wants the best for their children. But the cost of education and activities beyond regular classes is increasing.
With the cost of education rising rapidly, it has become necessary to do financial planning for children. The inflation rate in education costs is close to 11% annually. Which is almost double the average inflation rate. For example, over the past 20 years, MBA programs have become 8 times more expensive, which is staggering.
The rising cost of education is a serious concern for parents today. Suresh Soni says that as per the estimated inflation rate, an engineering degree today costs Rs 6 lakh.
Invest for Rs 1 Crore –
It can reach Rs 28 lakh in 20 years. He says parents can invest ₹9000 monthly for their child’s secure future and aim to accumulate ₹1 crore in 20 years by opting for a Systematic Investment Plan (SIP) with a step-up option. Can keep.
Baroda BNP Paribas Children’s Fund will invest at least 80 per cent of the total net assets in the portfolio in equities and equity-related securities using a broad investment strategy.
Top-down combines a regional focus with a bottom-up stock picking approach. With this investment strategy, the fund will invest across all market caps and sectors with the aim of maximizing returns while managing risk.
This open-ended, solution-oriented child plan comes with a lock-in period of 5 years or till the child attains the age of majority (18 years) (whichever is earlier). Being locked-in and clearly goal oriented, this scheme helps investors maintain their investments for the long term.
It allows investors to leverage the power of compounding with the aim of building a larger corpus to fulfill their child’s dreams. Investment in the scheme can be made in both lump sum and systematic investment plan (SIP) modes.
