BNP Paribas Asset Management India Pvt Ltd has launched the BNP Paribas Balanced Fund for Indian investors, including private banking and high-net-worth individuals clients.
BNP Paribas Asset Management India Pvt Ltd is the Indian arm of BNP Paribas Investment Partners.
The open-ended fund, aimed at investors seeking long-term wealth creation through a combination of equity, arbitrage and debt asset classes, is available for subscription from today.
It would have exposure ranging from 30-60% in equity and equity-related instruments, 5-10% in equity arbitrage and 30-60% in debt, money market instruments and liquid funds.
Ultimately, the objective is to improve risk-adjusted returns through diversification across these asset classes.
Commenting on the launch, Karthikraj Lakshmanan, senior equities fund manager, BNP Paribas Mutual Fund, said, 'We are focussed on long-term wealth creation through a diversified portfolio of equity, arbitrage and debt.
'Our equity portfolio consists fundamentally of robust companies across market cap and sectors; and we aim to have a portfolio construct with a large cap bias and targeted small and mid-caps exposure.
'The strategy for this fund could be considered by conservative investors seeking limited exposure to equities.'
Explaining the fixed income strategy, Lakshmanan added that the team actively manages the debt portion of the portfolio with a view to generate reasonable income over time.
Given prevailing market conditions, the team intends to target the shorter end of the yield curve.
This will be the fourteenth fund by BNP Paribas Mutual Fund since its foray into Indian market.
The total assets under management currently stand at Rs.5977 crores ($6.4 billion) for this fund; which is in addition to the $1.04 billion (as of 28 Feb) managed and advised by the company through its offshore advisory and discretionary portfolio management for international investors.