All You Need to Know About Baroda BNP Paribas Dividend Yield Fund

Baroda BNP Paribas Mutual Fund has launched a new open-ended equity scheme: Baroda BNP Paribas Dividend Yield Fund. The New Fund Offer (NFO) opened on August 22, 2024, and will close on September 05, 2024. The minimum subscription amount has been set at ₹1,000 as per the scheme information deed (SID).

Investment Objective

The investment objective of Baroda BNP Paribas Dividend Yield Fund is to provide medium—to long-term appreciation by predominantly investing in a well-diversified portfolio of equity and equity-related instruments of dividend-yielding companies. However, Baroda BNP Paribas Mutual Fund believes that the scheme’s investment objective cannot be guaranteed.

Investment Strategies

The fund manager of Baroda BNP Paribas Dividend Yield Fund will mainly invest in the equities and equity-related securities of dividend-paying companies. The companies may also decide to perform buybacks instead of or in addition to dividends. This is a yield to stockholders as well. The scheme will consider dividend-paying companies that have made a dividend payment or a buyback in at least one of the last three fiscal years.

The objective is to construct a portfolio that encompasses a range of dividend-paying companies within the current market. The Scheme will diversify as much as feasible among key businesses and economic sectors to lower the risk of instability.

The trailing dividend yield will be a crucial consideration when choosing a stock, but the following general parameters/factors will also be taken into account while constructing the portfolio:

• Long-term growth possibilities;
• Management reputation and track record;
• Business and economic fundamentals driven by in-depth study;
• the companies’ financial strength as demonstrated by widely accepted financial parameters using robust stock selection and valuation parameters

A maximum of 35% of the portfolio may be allocated to non-dividend-yielding companies.

Scheme Suitable for Which Investors

Baroda BNP Paribas Dividend Yield Fund is suitable for investors seeking long-term capital appreciation and investment, mainly in equity and equity-related instruments of dividend-yielding companies.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.