Baroda BNP Paribas Energy Fund NFO: Why Invest in India’s Energy Sector?
Do you want to invest in the energy businesses developing in India? If yes, the Baroda BNP Paribas Energy Opportunities Fund NFO opens great doors to explore the fast-moving energy sector. This newly launched NFO by Baroda BNP Paribas Mutual Fund has started its subscription from 21st January 2025 and will close on 4th February 2025.
The new fund offer conducts a deep analysis of both energy sector fundamentals while spotting emerging renewable investments.
Let’s find out if this new NFO could be the best NFO for 2025 for you or not.
Also Read: Why it’s a good strategy to invest in NFOs?
Baroda BNP Paribas Energy Opportunities Fund NFO Details
Here are the basic NFO details that cover this newly launched NFO in the energy sector:
| Scheme Name | Baroda BNP Paribas Energy Opportunities Fund |
|---|---|
| Issue Open Date | 21.01.25 |
| Issue Close Date | 04.02.25 |
| Category | Equity- Sectoral/ Thematic Fund |
| Benchmark | Nifty Energy TRI |
| Minimum Application Amount | Rs.1000 |
| Fund Managers | Mr Sanjay Chawla & Mr Sandeep Jain |
| Plans & Options | Regular and Direct Plans with Growth and Dividend Options |
Key Features of Baroda BNP Paribas Energy Opportunities Fund NFO
The following points give you an overview of this newly launched scheme in the equity thematic fund category:
- About the Scheme:The Baroda BNP Paribas Energy Opportunities Fund focuses on equity and equity-related securities of companies involved in activities such as exploration, production, distribution, transportation and processing of traditional and new energy, including but not limited to industries or sectors such as oil and gas, utilities and power.
- Investment Focus:This New Fund Offer will invest at least 80% of its money stocks of companies involved in energy and allied sectors, which can include production, distribution and related services.
- Good Investment Opportunity:The Baroda BNP Paribas Energy Opportunities Fund NFO will provide investors with targeted exposure to a dynamic industry that strives for growth, driven by both traditional energy needs and the transition towards renewable sources.
- Ideal Investment Horizon:The Energy Sector is a long-term investment that covers the growing green energy theme and is suited for an investment duration of 3+ years to generate higher returns for your portfolio.
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Investment Strategy of Baroda BNP Paribas Energy Opportunities Fund NFO
The new fund offer that is Baroda BNP Paribas Energy Opportunities Fund uses a unique investment framework known as the B.M.V model. It is a broad investment approach that focuses on three types of features when investing in top-tier companies, these are:
Sustainable businesses: It gives a competitive advantage using a business model analysis to filter the best companies from top to bottom in order to get maximum profits for you.
Quality of management: It refers to the consistency of matching words and actions by the managing team. This newly launched NFO has put a lot of focus on investing in quality companies with strong governance for better outcomes.
Buying at Reasonable Valuations: This latest NFO by Baroda BNP Paribas Mutual Fund believes in buying good companies at reasonable or lower prices than their actual value to get high ROI (Return on Investment) and also having good PE ratios.
You can refer to the below picture for a clear understanding:
Moreover, this new NFO has kept 80-100% of its money in companies belonging to the energy and other related energy sectors. Likewise, 0-20% is allocated to other equity, debt, and money market instruments, whereas 0-10% is distributed amongst REITs & InVITs.
What Themes are Covered Under Newly Launched Baroda BNP Paribas Energy Opportunities Fund NFO?
The following are the key themes that the Baroda BNP Paribas Energy Opportunities Fund NFO covers:
- Extraction:It involves investing in companies that are involved in mining & oil exploration companies.
- Production/ Generation:Invests in oil refining companies and energy generating companies.
- Transmission:Invests in power transmission companies, power InVITs and gas pipeline companies.
- Distribution:Oil marketing, power distribution and gas distribution.
- Energy Transition:Transition to renewable energy.
Who Should Invest in Baroda BNP Paribas Energy Opportunities Fund NFO?
This newly launched Baroda BNP Paribas Energy Opportunity Fund NFO is suitable for:
- Investors who want focused exposure to energy companies.
- Investors who want to participate in India's growth journey.
- Investors looking for new sectors or themes to diversify their portfolios.
Expert Fund Management by Latest NFO Baroda BNP Paribas Mutual Fund
It is time to meet the fund manager, Mr Sanjay Chawla, bringing with him 33+ years of expertise to this newly launched NFO. You can refer to the below picture for a list of fund managers that will be contributing their years of knowledge and skillset to this NFO:
Final Thoughts
To sum up, the Baroda BNP Paribas Energy Opportunities Fund NFO opens a special window into the transforming energy market today. You can start with a small amount via SIP and then gradually increase as you get a better understanding of how this new fund offer performs. Under expert management and focused strategy, this investment fund lets you enter the lucrative energy market. Take advantage of this unique investment experience right now.
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