BNP Paribas Asset Management India Pvt Ltd, the Indian arm of BNP Paribas Asset Management, has announced the New Fund Offer (NFO) of BNP Paribas Dynamic Equity Fund. This is an open-ended Dynamic Asset Allocation fund that aims to provide capital appreciation by dynamically managing the portfolio of equity and equity related instruments (including arbitrage exposure), and fixed income instruments. The NFO is available for subscription from 14th to 28th February 2019.
The scheme intends to take a call on the equity allocation based on the trailing monthly median Price-Earnings (PE) ratio of the Nifty 50 Index^. The endeavour of the Scheme will be to increase exposure of equities at lower PE level (when the market appears cheaper). Conversely when the market becomes expensive (higher PE) the Scheme will reduce its allocation to equities and move assets into cash future arbitrage/equity derivatives, debt and/or money market instruments.
Commenting on the BNP Paribas Dynamic Equity Fund, Sharad Sharma, Managing Director and CEO said, "Markets can be volatile and the risks associated with that volatility can impact an investor's decision to invest. With this new scheme, we intend to provide our investors an option to invest even when the markets are volatile."
"While markets have been resilient over the past 4 years, we believe that some events in the first half of CY2019 will play a role in increasing market volatility. An asset allocation strategy can help reduce volatility in such a market environment as it aims to manage the fund's exposure to equities in response to the changing market conditions." explained Anand Shah, Deputy Chief Executive Officer and Head of Investments, BNP Paribas Asset Management India Pvt Ltd.
This is the sixteenth fund by BNP Paribas Asset Management India Pvt Ltd since its foray into the Indian market, further strengthening the company's asset management offerings, which also include Offshore Advisory & Discretionary Portfolio Management services.
BNP Paribas Dynamic Equity Fund will re-open for ongoing subscriptions within five business days from the date of allotment.