Mutual fund investment: In the midst of the stock market correction, investors are pondering their next steps. The Nifty has dropped 10% from its peak on September 27, reaching 26,277, and analysts are now predicting targets as low as 21,300. A 10% decrease is typically seen as a correction, while a 20% drop would officially signify a bear market on Dalal Street. The Sensex has decreased by 8,553 points from its peak on September 29 of 85,978.25, with the Nifty also falling by 2,744 points since September 27.
Investors are deliberating whether it would be prudent to buy during the downtrend. While mutual fund investments are generally considered safer than individual stock investments, they are not entirely risk-free. Despite the risks, mutual funds have a reputation for growing investors’ capital over time. Some schemes have particularly proven to be profitable for investors.
Multi-cap equity funds have the flexibility to invest in companies of various sizes and across different sectors, giving them the freedom to allocate funds between big, mid-sized, and small companies as they see fit. This flexibility enables them to adjust their portfolio according to market conditions.
One such fund is Baroda BNP Paribas Multi Cap Fund, which was launched in September 2003. It is an open-ended scheme benchmarked against Nifty 500 Multicap 50:25:25 TRI.
The multi-cap mutual fund scheme has achieved a return of 40.29% in the past year and 15.95% gains since its inception approximately 21 years ago. Baroda BNP Paribas Multi Cap Fund currently holds assets worth Rs 2,739 crore as of October 31, 2024. If an individual had consistently invested Rs 7000 through monthly SIP in the scheme over the past 21 years, their investment would have grown to over Rs 1 crore.
A regular monthly SIP of just Rs 7000 in the scheme would have grown to Rs 1,04,43,953 in 21 years, with an annualised return of 14.76%. The total amount invested over the 21 years would have been Rs 17.64 lakh.
The most recent Net Asset Value (NAV) of Baroda BNP Paribas Multi Cap Fund Direct-Growth as on November 14, 2024, stands at Rs 312.47. With an expense ratio of 0.93%, this fund has a higher cost compared to most other Multi Cap funds in the market. The majority of the fund’s assets are allocated to the Financial, Capital Goods, Services, Healthcare, and Consumer Staples sectors. It has a lower exposure to the Financial and Capital Goods sectors compared to its peers in the same category.
The Baroda BNP Paribas Multi Cap Fund has primarily invested in the following sectors:
Sector Percentage of Portfolio
Financial 18.3%
Capital Goods 14.05%
Services 13.73%
Healthcare 9.46%
Consumer Staples 7.52%
Energy 7.1%
Metals & Mining 5.4%
Technology 5.25%
Automobile 3.52%
Chemicals 2.97%
The top 5 holdings of the fund include ICICI Bank, HDFC Bank, Mrs. Bectors Food Specialities Ltd, Reliance Industries Ltd, and PB Fintech Ltd.
