The asset management company said the Baroda BNP Paribas ESG Best-in-Class Strategy Fund raised around ₹640 crore, while the recently concluded New Fund Offer (NFO) of the Baroda BNP Paribas Services Fund collected over ₹590 crore.
The two funds received applications from investors across more than 5,700 pin codes, according to the fund house.
The ESG Best-in-Class Strategy Fund focuses on companies that score well on environmental, social and governance parameters, while the Services Fund aims to invest in companies benefiting from the expansion of India’s services economy.
India’s services sector accounts for the largest share of the country’s gross value added (GVA), with segments such as technology, healthcare, financial services, logistics, travel and hospitality driving growth.
Sanjay Grover, MD and CEO, Baroda BNP Paribas Asset Management (India), said investor interest in thematic funds indicates a shift towards strategies linked to long-term structural trends.
The fund house said thematic investing allows investors to take exposure to specific growth themes, but such funds can carry higher risks due to their concentrated exposure compared with diversified equity schemes.The launches come at a time when mutual fund investors have shown increasing interest in equity-oriented products, including sectoral and thematic schemes. However, industry experts have often advised investors to assess their risk appetite and investment horizon before allocating to such funds due to their dependence on the performance of specific themes.
