Business News Desk – Baroda Balanced Advantage Fund (BAF) of BNP Paribas Mutual Fund has achieved an important milestone. The fund, which will complete 6 years in November 2024, now has assets under management (AUM) of over Rs 4,000 crore. Meanwhile, investors who have invested in the fund under a SIP of Rs 10,000 since its launch in 2018 have seen their Rs 7.20 lakh grow to Rs 11.73 lakh by October 2024. This is a compound annual growth rate of 16.12 per cent ( CAGR), which outperforms the benchmark Nifty 50 Hybrid Composite Debt 50:50 Index. Which gave a CAGR of 12.62% in the same period.
The fund is ahead of its benchmark even in the short term
1 Year: SIP CAGR is 15.79% compared to 12.37% for the benchmark.
3 years: SIP CAGR is 17.10% against benchmark’s 12.55%.
5 Years: SIP CAGR is 16.41% against benchmark’s 12.75%.
One year return is 26.45%
Meanwhile, for lump sum investors, the fund’s annual return since inception has been 15.15%, much higher than the benchmark’s 12.58%. Moreover, in the short term the one-year return is 26.45%, which is about 8% higher than the benchmark.
The mutual fund house said the fund uses a proprietary model to allocate assets between equity and fixed income, so as to take advantage of market volatility. It also uses derivatives to capitalize on price differences in the cash and futures markets. The equity portfolio includes large-cap, mid-cap and small-cap stocks to provide diversification to the portfolio. Loan investments, on the other hand, focus on high-credit-quality instruments to ensure security and stability.