Baroda BNP Paribas AMC Unveils India's First Gift City US Small Cap Fund

Baroda BNP Paribas Asset Management has launched India’s 1st fund from GIFT City, Baroda BNP Paribas GIFT US Small Cap Fund, which offers direct access to the US small-cap market, allowing Indian investors to diversify globally without breaching the SEBI overseas investment cap. 

India’s 1st GIFT City Fund for US Small-Cap Exposure 

Baroda BNP Paribas GIFT US Small Cap Fund is structured under IFSCA's Restricted Scheme framework and denominated in $, this fund enables Indian residents to invest abroad using the RBI’s Liberalised Remittance Scheme. The fund aims to overcome SEBI's $7 billion overseas investment ceiling by leveraging GIFT City's regulatory environment. 

Underlying Investment in BNP Paribas US Small Cap Fund 

The new scheme directly invests in the BNP Paribas US Small Cap Fund, a $1.4 billion fund managed by a seasoned US-based team led by Geoff Dailey. This underlying fund has outperformed the Russell 2000 Index in 10 out of the past 12 years and has delivered a 3-year USD CAGR of 14.27% as of September 30, 2025. The portfolio includes diversified small-cap stocks across various US sectors. 

As per the news reports, Geoff Dailey, Lead Portfolio Manager of the BNP Paribas US Small Cap Fund stated, “The U.S. equity markets continue to show resilience and leadership in a volatile global landscape, and we see a compelling case for broadening exposure beyond the mega-cap names that have driven recent gains. U.S. small caps offer an attractive opportunity at this stage of the cycle – benefitting from a potential Fed pivot, relative valuation discounts to large caps, and increased domestic orientation as geopolitical risks persist.”  

Read More: MUFG and HSBC Expand Presence in India's GIFT City, Shifting Focus from Established Asian Financial Centres! 

Conclusion 

The Baroda BNP Paribas GIFT US Small Cap Fund offers a regulated and strategic alternative for Indian investors seeking international diversification. By leveraging GIFT City, the fund bypasses SEBI’s overseas limits and brings a fresh avenue for accessing US small-cap equity potential. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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