NFO: Baroda BNP Paribas Gold ETF Fund of Fund to open on August 4

Mumbai, July 30, 2025 – Baroda BNP Paribas Mutual Fund has announced the launch of its new scheme, the Baroda BNP Paribas Gold ETF Fund of Fund, with the New Fund Offer (NFO) set to open on August 4, 2025, and close on August 14, 2025, according to the Scheme Information Document dated July 25, 2025.

The scheme is an open-ended fund of fund, aiming to invest primarily in the Baroda BNP Paribas Gold Exchange Traded Fund (ETF), which in turn holds physical gold. The fund will offer units at ₹10 each during the NFO period.

Key Offer Terms

• Baroda BNP Paribas Gold ETF Fund of Fund is the name of the new scheme being launched.
• The New Fund Offer (NFO) will be open for subscription from August 4 to August 14, 2025.
• This is an open-ended fund of fund, meaning it will primarily invest in the Baroda BNP Paribas Gold ETF.
• The scheme’s performance will be benchmarked against the domestic price of gold, as determined by the AM fixing from the London Bullion Market Association (LBMA).
• Investors can start with a minimum application of ₹1,000 during the NFO period, and add in multiples of ₹1 thereafter.
• Systematic Investment Plans (SIPs) are available with flexible options:
  • Monthly SIP starts at ₹250
  • Daily or weekly SIPs begin at ₹500
  • Quarterly SIPs start from ₹1,500
• If investors redeem their units within 15 days, a 1% exit load will be charged. There’s no exit load after that period.
• Both the scheme and its benchmark carry a high-risk rating, as indicated by the fund’s riskometer.

Investment Objective and Strategy

The investment objective is to provide returns in line with those generated by the Baroda BNP Paribas Gold ETF, which invests in physical gold valued at the LBMA AM fixing price. There is no guarantee that the objective will be achieved.

Under normal conditions, 95% to 100% of net assets will be invested in the Gold ETF, with 0% to 5% exposure in money market instruments, including treasury bills and government securities with residual maturity up to one year. The scheme does not invest in derivatives, securitized debt, credit-enhanced instruments, structured obligations, or engage in stock lending or short selling.

Fund Management and Expense Details

The fund will be managed by Mr. Gurvinder Singh Wasan, Mr. Madhav Vyas, and Ms. Swapna Shelar. The Total Expense Ratio (TER) is capped at 1.00% of daily average net assets, in compliance with Regulation 52 of SEBI (Mutual Fund) Regulations. There is no upfront commission; the fund follows a complete trail commission model. Additional expense of up to 0.05% may apply only if the exit load is levied.

NAV and Valuation

The Net Asset Value (NAV) will be calculated and disclosed on all business days, with the first NAV to be published within 5 business days from allotment. Ongoing NAVs will be based on the closing traded price of the underlying Gold ETF. Since the ETF declares NAV on the next business day, the Fund of Fund NAV will be disclosed by 10 a.m. on the following business day.

Redemption and Dividend Timeline

• Redemption proceeds will be credited to investors within 3 working days.
• For those opting for IDCW (dividend), the payout will be processed and credited within 7 working days.
• In case of any delay beyond the stipulated timeline, the fund will pay a penalty interest of 15% per annum on the delayed amount.

Investor Suitability

The scheme is suitable for investors seeking long-term capital growth through investments in gold ETFs, with a high risk tolerance. Units can be purchased directly or via SIPs, STPs, SWPs, and other systematic options. Investors can also opt for a demat account-based holding.

About Baroda BNP Paribas Mutual Fund

Baroda BNP Paribas Mutual Fund is a joint venture between Bank of Baroda and BNP Paribas Asset Management. The fund house offers a diversified portfolio of equity, debt, hybrid, and gold-oriented schemes and is headquartered in Mumbai, with operations spanning across India.

REF: https://portal.amfiindia.com/spages/14284.pdf

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