BNP Paribas Mutual Fund has announced the launch of BNP Paribas Focused 25 Equity Fund. The NFO of the scheme is currently open for subscription and will close for subscription on 29 September, 2017.
The BNP Paribas Focused 25 Equity Fund is an open-ended equity fund and seeks long term capital growth by investing in a concentrated portfolio of equity and equity related instruments. This will be a multi-cap portfolio, of which a minimum 65% will be large capitalization companies and up to 35% in high conviction, fast growing small and mid-sized companies.
Commenting on the BNP Paribas Focused 25 Equity Fund, Sharad Sharma, Managing Director and Chief Executive Officer said, “Going forward, we think that financialisation of savings, formalisation of Indian economy, rise in farm income and fiscal spending are a few structural opportunities which could drive earnings recovery albeit in selected sectors and sub-sectors. We think sectors and companies which are positioned towards the domestic side of the economy could potentially stand to benefit from these opportunities.”
“Market earnings growth has been lacklustre for the last three years and valuations have become richer. Select sector leaders and companies that are at the cusp of a turnaround are likely to outperform and help alpha creation. This alpha generation opportunity is likely to be higher in a concentrated portfolio as the conviction and size of bets remain high,” said Anand Shah, Deputy Chief Executive Officer and Head of Investments, BNP Paribas MF.
BNP Paribas MF manages assets of Rs.6,500 crore as on June 2017.
