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BNP Paribas Aqua Fund of Fund NFO - Investment Objective, Returns, Taxation, SIP

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Gaurav Seth
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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

CompanySub-sectorsWeightage
Fischer (Georg)-Reg Water Infrastructure 2.97%
Alfa Laval Ab Diversified Environmental 2.90%
Agilent Technologies Inc Environmental Testing & Gas Sensing2.84%
Rexnord Corp Water Infrastructure2.80%
Pennon Group Plc Water Utilities2.77%
Pentair PlcWater Treatment Equipment 2.75%
Idex CorpDiversified Water Infrastructure & Technology2.72%
Essential Utilities IncWater Utilities2.59%
Trimble IncSustainable & Efficient Agriculture 2.49%
American Water Works Co Inc Water Utilities 2.46%

*As of 31st December 2020

BNP Paribas Aqua - Sector Exposure

SectorWeightage
Industrials48.18%
Utilities21.45%
Materials10.19%
Health Care7.04%
Information Technology6.77%
Consumer Discretionary4.75%
Cash1.61%

*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

InstrumentsMinimum % 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 funds0%5%Low 

About the Scheme

Name of the fundBNP Paribas Aqua Fund of Fund
Fund launched byBNP Paribas Mutual Fund 
Asset Management CompanyBNP Paribas Trustee India Private Limited
Type of schemeAn open-ended fund of fund scheme primarily investing its assets in BNP Paribas Aqua (Lux)
Investment ObjectiveThe 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).
BenchmarkMSCI World Index TRI
Entry LoadNot 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, & SWPAvailable
Plans Available
  • Regular
  • Direct
Options
  • Growth
  • Dividend Payout
  • Dividend Reinvestment
Fund ManagersMr. Abhijeet Dey and Mr. Karthikraj Lakshmanan

SIP Details

Type Minimum AmountMinimum Installments

Daily SIP, Weekly SIP &

Monthly SIP

₹300-₹49920
₹500-₹99912
₹1,000 & above6
Quarterly SIP₹1,000 & in multiples of ₹1 thereafter6

 

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