New mutual fund scheme
Baroda BNP Pariba Mutual Fund has launched its New Fund Offer (NFO), Baroda BNP Pariba Energy Office Fund. This NFO has opened from 21 January. This NFO will be open for subscription till 4 February 2025. That is, investors can invest in it by 4 February. This scheme will provide investors a chance to earn from the energy sector constantly growing, as India is turning from a developing to a developed economy. India’s GDP (GDP) is estimated to grow 1.9 times in the next 5 years, so India’s energy demand is also likely to increase by 1.7 times. Due to this, the energy of energy in the country will increase rapidly in the coming days.
Energy is increasing in India
Between 2003 and 2023 in China, per capita consumption increased from 1.5 MW (MWH) to 6.6 MW (MWH), which reflects strong growth related to GDP expansion. Similarly, energy consumption in South Korea has also been according to per capita growth in GDP. India is now on the path of similar growth, which has widespread demand for energy in homes, farming, industry, commercial installations and infrastructure.
Where will the funds of the fund take?
Energy sources include coal, crude oil, gas, nuclear, solar, wind, hydro, geotheral and hydrogen to meet the economy demand. The Baroda BNP Pariba Energy Offections Fund will allocate at least 80 percent of its assets and allocated in the equity options of companies with every market capitalization companies involved in traditional and new energy discovery, production, distribution, transportation and processing. The scheme will focus on investment opportunities in traditional energy chains as well as investment in New Energy Transition. Indian energy demand is a secular story that will be inspired by India’s double class size, hire income -inspired lifestyle changes and energy transition.
Historically strong performance
Research conducted by Baroda BNP Pariba AMC highlights that Nifty Energy TRI has performed better than Nifty 500 TRI over 3, 5, 7 and 10 years period ending on 31 December 2024. This shows better performance energy theme capacity for the long term, which can give better returns to investors over time. Suresh Soni said that our Baroda BNP Pariba Energy Office Fund can be considered ideal for equity investors with a holding period of 3 years or more. Keeping in mind the government’s focus on this major sector, many central government schemes promoting the energy sector are currently running, including incentives related to production on high efficiency solar modules (PLI), National Solar Mission Rooftop Scheme , Judicial Gap Funding and National Green Hydrogen Mission for Battery Energy Store Systems are included.
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