BNP Paribas Aqua Fund of Fund NFO
BNP Paribas Mutual Fund has announced the launch of the BNP Paribas Aqua Fund of Fund. BNP Paribas Aqua Fund of Fund scheme would be predominantly investing its assets in the units of its underlying fund i.e. BNP Paribas Aqua (Lux).
The New Fund Offer (NFO) will open on 16th April 2021.
Investment Objective
The investment objective of the scheme is to generate long-term capital growth by investing its assets in units of its underlying fund i.e. BNP Paribas Aqua (Lux).
Features
- The fund will be investing a minimum of 95% of its assets in the underlying fund.
- The underlying fund is BNP Paribas Aqua (Lux).
- The investment objective of the BNP Paribas Aqua (Lux) is to achieve sustainable and market-beating returns over the long term through investments in the companies active in the rapidly growing water value chain.
- The fund will also take small exposures to money market instruments to ensure liquidity.
- The underlying fund has 54 stocks in the portfolio as of 31st December 2020.
Why Invest in BNP Paribas Aqua Fund of Fund (Lux)?
- The fund will be investing in the underlying fund i.e. BNP Paribas AQUA.
- The fund will offer a high active share vs global equities while maintaining similar risk characteristics to a broader equity portfolio.
- The fund investable universe will have high exposure to global fast-growing mid-cap companies.
- Positive Environmental Impact: The fund will invest in water efficiency, recycling, and treatment through its exposures to companies associated with these operations. Also, the fund demonstrates exposure of the portfolio to the UN Sustainable Development Goals.
BNP Paribas Aqua - Top Holdings
| Company | Sub-sectors | Weightage |
| Fischer (Georg)-Reg | Water Infrastructure | 2.97% |
| Alfa Laval Ab | Diversified Environmental | 2.90% |
| Agilent Technologies Inc | Environmental Testing & Gas Sensing | 2.84% |
| Rexnord Corp | Water Infrastructure | 2.80% |
| Pennon Group Plc | Water Utilities | 2.77% |
| Pentair Plc | Water Treatment Equipment | 2.75% |
| Idex Corp | Diversified Water Infrastructure & Technology | 2.72% |
| Essential Utilities Inc | Water Utilities | 2.59% |
| Trimble Inc | Sustainable & Efficient Agriculture | 2.49% |
| American Water Works Co Inc | Water Utilities | 2.46% |
*As of 31st December 2020
BNP Paribas Aqua - Sector Exposure
| Sector | Weightage |
| Industrials | 48.18% |
| Utilities | 21.45% |
| Materials | 10.19% |
| Health Care | 7.04% |
| Information Technology | 6.77% |
| Consumer Discretionary | 4.75% |
| Cash | 1.61% |
*As of 31st December 2020
Who Should Invest?
This scheme is suitable for investors who are -
- Interested in long-term capital growth.
- Interested in investments in units of the BNP Paribas Aqua (Lux).
- Recommended for investors with an investment horizon of 5 years & above.
Asset Allocation Pattern
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Units of Underlying fund i.e. BNP Paribas Aqua (Lux)) | 95% | 100% | High |
| Money Market instruments or units of other mutual funds | 0% | 5% | Low |
About the Scheme
| Name of the fund | BNP Paribas Aqua Fund of Fund |
| Fund launched by | BNP Paribas Mutual Fund |
| Asset Management Company | BNP Paribas Trustee India Private Limited |
| Type of scheme | An open-ended fund of fund scheme primarily investing its assets in BNP Paribas Aqua (Lux) |
| Investment Objective | The investment objective of the scheme is to generate long-term capital appreciation by investing its assets in the units of the underlying fund i.e. BNP Paribas Aqua (Lux). |
| Benchmark | MSCI World Index TRI |
| Entry Load | Not Applicable |
| Exit Load | -If units redeemed or switched out within 1 year- 1% of applicable NAV -If units are redeemed or switched out after 1 year- NIL |
| Taxation | Taxed as Non-Equity -If units are sold within 3 years, gains will be added to income and taxed as per the investor's tax slab -If units are sold after 3 years, gains are taxed with long-term capital gain tax @20% after indexation benefits |
| Minimum Application Amount | ₹ 5,000 & in multiples of ₹ 1 thereafter |
| Minimum Additional Amount | ₹ 1,000 & in multiples of ₹ 1 thereafter |
| STP, DTP, & SWP | Available |
| Plans Available |
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| Options |
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| Fund Managers | Mr. Abhijeet Dey and Mr. Karthikraj Lakshmanan |
SIP Details
| Type | Minimum Amount | Minimum Installments |
Daily SIP, Weekly SIP & Monthly SIP | ₹300-₹499 | 20 |
| ₹500-₹999 | 12 | |
| ₹1,000 & above | 6 | |
| Quarterly SIP | ₹1,000 & in multiples of ₹1 thereafter | 6 |