The scheme will be benchmarked against Nifty Energy TRI and managed by Sanjay Chawla and Sandeep Jain. The minimum investment amount is Rs 1,000 per application and in multiples of Re 1.
The minimum amount for daily, weekly, and monthly SIP is Rs 500 and in multiples of Re 1 thereafter. For quarterly SIP, the minimum amount is Rs 1,500 and in multiples of Re 1 thereafter.
This scheme enables investors to benefit from the expanding energy sector, as India transitions from a developing to a developed economy, according to a release by the fund house.
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The Baroda BNP Paribas Energy Opportunities Fund will allocate at least 80% of its assets to equity instruments of companies involved in exploration, production, distribution, transportation, and processing of traditional and new energy across market capitalizations. Around 0-20% in equity and equity related instruments of companies other than those in the energy and allied sectors, 0-20% in debt and money market instruments, 0-10% in units of mutual funds (domestic schemes), and 0-10% in units issued by REITs & InvITs.
“Our Baroda BNP Paribas Energy Opportunities Fund may be considered ideal for equity investors with a holding period of three years or more,” added Soni.
The scheme will focus on investment opportunities across the traditional energy chain as well as new energy transitions. The scheme is designed to capitalize on the growing energy sector, providing investors with a strategic avenue for growth. With energy being a long-term theme, the scheme is best suited for those looking to hold their investments for over three years to fully benefit from the sector’s growth potential, said the release.
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“Indian energy demand is a secular story that will be powered by the doubling of the size of India’s middle class, lifestyle changes driven by higher incomes, and energy transition. In addition, government’s focus on improving India’s energy security by more than doubling the share of natural gas to 15% of the energy mix by 2030 and boosting our coal security coupled with, the government’s plan to invite bids for 50 Gigawatt of renewable energy capacity annually between FY24-28 will see India’s solar power capacity grow 4X and wind power by 2.5X by 2031-32. These structural changes aim to open a whole vista of profitable investment opportunities for investors,” added Chawla.
The Baroda BNP Paribas Energy Opportunities Fund is yet another offering in keeping with the fund houses’ brand promise of ‘Together for more’ designed to bring together the power of markets to create wealth, with cost effective, professional investment management services that help savers progress on the path of prosperity, the release mentioned.
