Baroda BNP Paribas AMC Launches India’s First GIFT City-Based US Small-Cap Fund

Baroda BNP Paribas Asset Management (Baroda BNP Paribas AMC) has introduced the Baroda BNP Paribas GIFT US Small Cap Fund through its GIFT City branch, positioning it as India’s first investment vehicle offering direct access to US small-cap equities through an IFSCA-regulated structure.

Structure and Investment Approach

The newly launched fund operates as a Restricted Scheme under GIFT City guidelines and invests in the BNP Paribas US Small Cap Fund, a US-domiciled fund with $1.4 billion in assets under management. The underlying fund has delivered a 3-year USD CAGR of 14.27%, according to data from BNP Paribas Asset Management.

Sanjay Grover, Managing Director & CEO of Baroda BNP Paribas AMC, noted that this product offers a new pathway for Indian investors to allocate funds to US small-cap companies under the Liberalised Remittance Scheme (LRS). He pointed out that many investors earlier faced barriers in accessing overseas equities due to SEBI’s $7 billion cap on mutual fund investments abroad. The new GIFT City structure helps ease this constraint.

Managed by Experienced US-Based Investment Team

The underlying fund is managed by a US-based team led by Geoff Dailey, who highlighted that current market valuations create attractive opportunities within the small-cap universe. Dailey also emphasised that US small-cap stocks offer broader economic exposure, unlike large-cap indices that are heavily skewed toward technology giants.

GIFT City Expansion and Regulatory Framework

Baroda BNP Paribas AMC established its GIFT City presence in 2024 and is registered with the International Financial Services Centre Authority (IFSCA) as a Retail Fund Management Entity. With this launch, the fund house aims to expand access to global markets for resident investors, family offices, HNIs, and UHNIs through a regulated, dollar-denominated investment route.

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Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.