Baroda Mutual Fund has launched a new fund offer (NFO) for a large and mid-cap fund. Baroda Large & Mid Cap Fund is an open-ended equity fund that will be investing in large and mid-cap stocks. The NFO for the fund opens on August 17 and closes on August 31.
Investment Strategy
The scheme will be investing in a mix of large-cap and mid-cap stocks. According to substitute with “the Securities & Exchange Board of India (SEBI) (Mutual Funds) Regulations, 1996 as amended from time to time, large and mid-cap funds should have a minimum of 35% in large and mid-cap stocks each. The scheme being an equity-oriented scheme will allocate 65% or more in equity or equity-related instruments.
Baroda MF has laid out a broad investment plan and allocation strategy:
Source: Scheme Information Document
Benchmark Index
The benchmark index for this scheme is S&P BSE 250 Large MidCap 65:35 TRI. The S&P BSE 250 Large MidCap index is a stock index registered with the Bombay Stock Exchange. The index is designed to replicate a portfolio of stocks which has 65% weight in the S&P BSE 100 and a 35% weight in the S&P BSE 150 MidCap.
Did You Know
From February 2018, all mutual funds were mandated by SEBI to use Total Return Index (TRI) to benchmark the performance of their schemes. TRI indices record the price movements and dividend payouts of all the stocks listed in the index. Some believe that TRI gives the true picture of an index and the companies listed because it provides us with an idea of the ‘true’ value by taking into account dividend payouts as well.
Fund Details
The Baroda Large and Mid-Cap Fund will have regular and direct plans. Direct plans are those plans when you buy units of a mutual fund from the AMC or a direct mutual fund platform like Groww.
In terms of options, the plan will have both growth and dividend options. The fund has a dividend reinvestment option where the dividend you receive gets reinvested in the plan Automatically and a dividend payout option where the dividend is paid out to the investor.
Here are other details from the fund:
| Name of the Fund | Baroda Large & Mid Cap Fund |
| Type of Scheme | An open-ended equity scheme investing in both large-cap and mid-cap stocks. |
| Equity category | Large and Mid Cap Fund |
| Benchmark | S&P BSE 250 Large MidCap 65:35 TRI** |
| NFO Dates | Opens on August 17, 2020, and closes on August 31, 2020 |
| Fund Manager | Sanjay Chawla, Ashwani Kumar Agarwalla |
| Minimum Application Amount/Minimum Purchase Amount | Rs. 5000 and in multiples of Re. 1 after that |
| Minimum Additional Investment | Rs 1,000 and in multiples of Re 1 after that |
| Minimum Redemption Amount | No minimum number of units or units for redemption |
| Entry Load | Nil |
| Exit Load | If up to 10% units are redeemed on or before 365 days from the date of allotment of units
1% of applicable NAV : If more than 10% of units is redeemed on or before 365 days from the date of allotment of Unit NIL: If Units are redeemed after 365 days from the date of allotment of units The above Exit Load will be applicable on a FIFO (First-In-First-Out) basis, to all subscription transactions, excluding switch-ins. |
| Plans | Regular Plan and Direct Plan |
| Options | Growth and Dividend Option, Dividend Reinvestment Option |
Other Details
| SIP | |
| Type | Minimum Amount |
| Monthly SIP | Rs. 500 /- and in multiples of Re. 1/- after that per instalment |
| Quarterly SIP | Rs. 1,500/- and in multiples of Re. 1/- after that per instalment |
| SWP | |
| Type | Amount |
| Monthly SWP | Rs. 1,000/- and in multiples of Re. 1/- after that per instalment |
| Quarterly SWP | Rs. 1,500/- and in multiples of Re. 1/- after that per instalment |
| STP | |
| Type | Amount |
| Monthly STP | Rs. 1,000/- and in multiples of Re. 1/- after that per instalment |
| Quarterly STP | Rs. 1,500/- and in multiples of Re. 1/- after that per instalment |
| (The STP will be terminated if the amount to be transferred is less than the minimum application amount of the transferee scheme) | |
Fund Managers
Mr Sanjay Chawla: Also, the Chief Investment Officer of the AMC, Mr Chawla, has 30 years of experience in equity research and fund management. Before Baroda MF, Mr Chawla worked as a senior fund manager of equity with Birla Sun Life AMC. He has worked in the equity research space in various capacities as well.
Apart from this fund, Mr Chawla has the following funds in his kitty:
- Baroda Multi-Cap Fund: (Earlier known as Baroda Pioneer Growth Fund): Along with Mr Dipak Acharya
- Baroda ELSS 96: Along with Mr Dipak Acharya
- Baroda Hybrid Equity Fund: Along with Mr Dipak Acharya
- Baroda Large Cap Fund: Along with Mr Dipak Acharya
- Baroda Mid-cap Fund: Along with Mr Dipak Acharya
- Baroda Dynamic Equity Fund: Along with Mr Dipak Acharya
- Baroda Equity Savings Fund: Along with Mr Dipak Acharya and Mr Alok Sahoo
Mr Ashwani Kumar Agarwalla: Mr Agarwalla is a senior analyst and dedicated fund manager for overseas investments. Before Baroda MF, Mr Agarwalla has worked with JM Financial Mutual Fund as an equity analyst reporting to the Fund Manager. He has also worked as an analyst in various capacities with Pioneer Investcorp Ltd (as a sell-side equity analyst), Adventity India and CARE Ratings.
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