BNP Paribas Equity Fund

BNP Paribas Equity Fund is being managed by Shreyas Devalker since Oct 2011.  It was an average performing fund compared to its peers in the same category but now its performance is good currently. 

Where does BNP Paribas Equity Fund invest your money?

BNP Paribas Equity Fund is a large cap fund which means your money is mostly invested in stocks of large cap companies. BNP Paribas Equity Fund has 76.45% exposure to giant and large size companies, 10.77% exposure to medium size companies and 12.78% exposure in small size companies. Large cap companies tend to be stable compared to mid cap and small cap companies. Small and mid size companies have the potential to become large companies and when that happens you are expected to get bumper returns.

Suitable for what?
  • Child's education
  • Child's marriage
  • Buying house
  • Planning for retirement
Not suitable for what?
  • Creation of wealth
  • Short term needs
How much to invest?

Minimum one time investment is Rs 10,000 and minimum SIP is Rs 2000. You can make BNP Paribas Equity Fund as part of your core portfolio. Core portfolio includes investments that are made for your basic goals and makes up about 70% of your investment portfolio. BNP Paribas Equity Fund can be part of your satellite portfolio. Do not make the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

Our recommendation for fresh investment
Recommended
Our recommendation for existing investment.
Recommended
How has BNP Paribas Equity fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Sep 2004 the value of your investments would be around Rs 4 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.19 lakhs. The performance has been not better than or similar to other mutual funds in this category. The fund has been giving at around 3.7% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in BNP Paribas Equity Fund through SIP for the past 5 years today you would have just around Rs 8.01 lakhs.

How will BNP Paribas Equity fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 9% then you can expect top performing mutual funds to give you returns in excess of 15%. 

We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of BNP Paribas Equity Fund is 2.82%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

When to enter?

Now! There is no good time to invest rather than now. Do not try to time the market and especially so if it is an SIP. Do not follow news channel and other experts to know the right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where you are looking at the right price. This job will be done by the mutual fund scheme manager. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead.

When to exit?

Withdraw when your goals are closer to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. BNP Paribas Equity Fund does not qualify for sec 80C ELSS benefits.

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