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Baroda BNP Paribas Mutual Fund has launched a solution oriented fund Baroda BNP Paribas Children’s Fund. Pratish Krishnan will manage this fund.
Suresh Soni, CEO of Baroda BNP Paribas AMC said, “This scheme is a growth-oriented investment option that aims to grow with the child and helps fulfil the parents’ dreams for their children. Parents can leverage systematic investment plans (SIPs) with step-up options to potentially accumulate Rs. 1 crore in 20 years just by investing Rs. 9,000.”
The fund house said in a press release that it is essential to plan the children’s future in advance because the inflation rate in education is 11% per annum, almost double the average inflation rate. The cost of an MBA program has become a staggering 8 times costlier in the last 20 years.
The fund will invest at least 80% of the amount in equity-related securities and it has a 5-year lock-in period or until the child reaches the age of majority, i.e. 18 years (whichever is earlier).
