Is the Baroda BNP Paribas Children's Fund NFO a Good Investment?

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Did you promise your child to give them the world once you had their small fingers wrapped around your hand? If yes, the Baroda BNP Paribas Children's Fund NFO presents an amazing opportunity to make good on your promise.

Yes, the subscription for this newly launched NFO by the Baroda BNP Mutual Fund started on 6th December 2024 and will close on 20th December 2024.

But wait, do you know how much money you need to invest today to meet your child's future expenses? Or how prepared are you for your child's future?

This analysis unravels all your queries regarding how to plan your child's future investments. Let's see if this could be the best NFO 2024 for you or not.

Baroda BNP Paribas Children's Fund NFO Basic Details

Here are the basic information on the new fund offer:

Investing Strategy Adopted by Baroda BNP Paribas Children's Fund NFO

This New Fund Offer has applied a strategic investment approach to investing in your child's future, aiming to invest at least 80% of its net assets in equity and equity-related instruments. The investment process of Baroda BNP Paribas Children's Fund has 2 parameters such as:

1. Sector Selection:This uses a top-down approach to look at the macroeconomic analysis, sector performance, sector trends and sector risk assessment.
2. Stock Selection:In order to pick quality stocks, this new NFO will use a bottom-up approach, giving a diversified portfolio with no sector or market cap bias. You can refer to the below picture to know how Baroda BNP Paribas Children's Fund filters on company selection:

Let's move along to cracking the mastermind behind this new fund offer.

Mastermind Behind the Baroda BNP Paribas Children's Fund NFO

It's time to meet the fund manager, Mr Pratish Krishnan, having 20+ years of experience in handling equity investments. You can be assured that the management of this newly launched NFO by Baroda BNP Paribas Mutual Fund is in great hands and will help you in wealth creation in the long term. Moreover, by combining his expertise and targeting significant milestones such as education or other future needs of children, you get the chance to make high returns for your portfolio.

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Curious to find a step-by-step guide to plan your child's future? The next heading answers you just that.

How to Use Baroda BNP Paribas Children's Fund NFO for Education Planning?

You can plan a secure and balanced future for your child in the 3 simple steps:

1.Have a Focused Goal-Based Approach:

This goal-based investing is a systematic investment technique that matches your investment decisions with specific life goals, promoting financial discipline and clarity. Refer to the below picture for a better understanding:

2.Small Investments via SIP:

These small and regular investments could help make your kid a crorepati in the long term. See the below graph to know the value of your investment in Mutual Funds over the years:

3.Use Step up SIP for Compounded Returns:

With small periodic and disciplined investments in the Baroda BNP Paribas Children's Fund. It is possible to build a large corpus with a 10% step up SIP each year for your child's education. Check out the below table for a better understanding:

Pro Tip: Find Out How Your SIP Can Grow Using the Step Up SIP Calculator.

4.Start Your Investments Early :

Starting an early systematic investment plan helps you benefit from the power of compounding. This means, the earlier you start the more you have time to grow. Here is an example of how much your investments can grow if you invest now:

Key Takeaways on Baroda BNP Paribas Children's Fund NFO

Here are the important key takeaways on Barida BNP Paribas Children's Fund for you:

1. Focus on Better Education:As a parent, you can aim for your child to achieve greater success than themselves. It provides you with superior educational opportunities as your primary focus.
2. Rising Education Costs:The cost of education is always rising and education inflation is double the CPI (Consumer Price Indexes) inflation.
3. Education Inflation Exceeds CPI Inflation:Investing in your child's future is essential. Equity Funds are a preferred asset type as it has historically beaten the high education inflation.
4. Investing for the Future:Baroda BNP Paribas Children's Fund NFO is specifically designed for children under the age of 18. This new fund offer understands the need to prioritise your child's future planning.

Summary of Baroda BNP Paribas Children's Fund NFO

In short, this expert analysis of the Baroda BNP Paribas Children's Fund review makes a compelling case to add to your portfolio. This new fund offers benefits the children who fall under the age group of less than 18 years. Moreover, investing via SIP will be the best strategy as it comes with a lock-in period of 5 years or until the child reaches adulthood, whichever comes first.

Moreover, this longer investment period will help families take advantage of the power of compounding, thereby enhancing the overall growth potential of their investment.

Also Read : 

1. SIP vs SWP vs STP Comparison: Best Investment Plans for 2025
2. What is the Best Date for SIP? Tip for Smart Investors