India’s First Gift City fund investing in US Small Caps: Baroda BNP Paribas
Baroda BNP Paribas Asset Management has launched the Baroda BNP
Paribas GIFT US Small Cap Fund. It is India’s first-ever fund offering
investors direct access to the US small-cap market.
The fund allows the Indian investors an alternate route to
participate in the US equity markets through a regulated, dollar-denominated
investment fund leveraging the remittance limits allowed to Resident Indians by
the RBI under the Liberalised remittance scheme under the Overseas Portfolio
Investment route.
As a GIFT City-registered Restricted Scheme, the Baroda BNP
Paribas GIFT US Small Cap Fund is an efficient investment option for investors
seeking to diversify their investments into US Small Caps. We believe US small
caps are a potentially attractive asset class that are poised to benefit from
multiple potential tailwinds in ’25.”
The new fund is structured as an IFSCA-regulated Restricted
Scheme, addressing the constraint of SEBI’s $7 billion overseas investment cap
by reopening global access for individuals, family offices, HNIs and UHNIs.
The fund will invest into the BNP Paribas US Small Cap Fund, a
3-star rated scheme by Morningstar that has outperformed the Russell 2000 Index
in 10 of the last 12 years, generating alpha in varied market conditions.
The U.S. equity markets continue to show resilience and leadership in a volatile global landscape, and we see a compelling case for broadening exposure beyond the mega-cap names that have driven recent gains.
U.S. small
caps offer an attractive opportunity at this stage of the cycle – benefitting
from a potential Fed pivot, relative valuation discounts to large caps, and
increased domestic orientation as geopolitical risks persist”
For investors seeking to diversify beyond the big tech sector,
small caps also offer broader exposure to the U.S. economy beyond the
tech-heavy S&P 500 – hence allowing investors to tap into the
underappreciated and under-researched part of the U.S. growth engine.
For more details and investment..!
Mr. K P Venkatarama
Krishnan,
Founder, Viruksham
Finmart Private Ltd
Chennai
E - Mail:
kpvenkat02@gmail.com
Cell Number: 98410
34997
Read articles written by Mr. K P Venkatarama Krishnan in Nanayam
Vikatan, a leading personal finance magazine.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme
related documents carefully. The past performance of the mutual funds is not
necessarily indicative of future performance of the schemes.
