Baroda BNP Paribas Floater Fund NFO: Key details you need to know

11 Apr 2023 , 09:35 AM

Baroda BNP Mutual Fund is launching NFO under its “debt category”, named as Baroda BNP Paribas Floater Fund. This open-ended aims to generate regular income through investment in a portfolio comprising predominantly of floating rate instruments and fixed rate instruments swapped for floating rate returns.

Investment strategy: The scheme would invest predominantly in floating rate securities as well as fixed interest rate securities swapped for floating rate returns. The scheme may also invest a part of the portfolio in fixed rate debt and money market instruments. The scheme would aim to allocate assets across floating rate instruments, fixed rate instruments and derivatives to generate returns.

Asset allocation: The Scheme would invest in floating Rate and fixed rate securities created and issued/ guaranteed by the Central and State Governments, Debt obligations of domestic Government agencies and statutory bodies, f corporate entities (of both public and private sector undertakings) including Non-convertible debentures (including bonds) and non-convertible part of convertible securities, Debentures (of both public and private sector undertakings), etc.

Who should invest?

Investors with moderate risk appetite and want to take the benefit of floating interest rates looking for regular income by investing in debt instruments should invest in Baroda BNP Paribas Floater Fund. 

Risk associated: Moderate level of risk.

Benchmark: CRISIL Low Duration Debt Index.

Fund Managers: Mr Mayank Prakash and Mr Prashant Pimple.

The NFO is available for subscription from April 10 to April 24. The schemes will reopen for continuous sale and repurchase within five Business Days from the date of allotment. The fund offers systematic investment solutions like SIP and SWP to create a flexible investment plan. The minimum subscription amount is Rs 5000/- and in multiples of any amount thereafter. 

It offers Regular Plan and Direct Plan. Each plan offers Growth and Income options. Click here to invest in Baroda BNP Paribas Floater Fund.