BNP PARIBAS DYNAMIC EQUITY FUND - Suitable for all time and all type of Investors

BNP PARIBAS DYNAMIC EQUITY FUND - Suitable for all time and all type of Investors..!


BNP Paribas Asset Management India Pvt Ltd, the Indian arm of BNP Paribas Asset Management today announced the New Fund Offer (NFO) of BNP Paribas Dynamic Equity Fund.  This is an open-ended Dynamic Asset Allocation fund that aims to provide capital appreciation by dynamically managing the portfolio of equity and equity related instruments (including arbitrage exposure), and fixed income instruments. The NFO is available for subscription from 14th to 28th February 2019.

The scheme intends to take a call on the equity allocation based on the trailing monthly median Price-Earnings (PE) ratio of the Nifty 50 Index^. The endeavour of the Scheme will be to increase exposure of equities at lower PE level (when the market appears cheaper). Conversely when the market becomes expensive (higher PE) the Scheme will reduce its allocation to equities and move assets into cash future arbitrage/equity derivatives, debt and/or money market instruments.

Commenting on the BNP Paribas Dynamic Equity Fund, Sharad Sharma, Managing Director and CEO said, “Markets can be volatile and the risks associated with that volatility can impact an investor’s decision to invest. With this new scheme, we intend to provide our investors an option to invest even when the markets are volatile. ”

“While markets have been resilient over the past 4 years, we believe that some events in the first half of CY2019 will play a role in increasing market volatility. An asset allocation strategy can help reduce volatility in such a market environment as it aims to manage the fund’s exposure to equities in response to the changing market conditions.” explained Anand Shah, Deputy Chief Executive Officer and Head of Investments, BNP Paribas Asset Management India Pvt Ltd.

This is the sixteenth fund by BNP Paribas Asset Management India Pvt Ltd since its foray into the Indian market, further strengthening the company’s asset management offerings, which also include Offshore Advisory & Discretionary Portfolio Management services.

BNP Paribas Dynamic Equity Fund will re-open for ongoing subscriptions within five business days from the date of allotment. 

^Investors should note that the allocation and monthly rebalancing depending upon the trailing PE levels of Nifty Index as indicated in the Scheme Information Document (SID) are indicative only and not binding on the Fund Manager. The Fund Manager retains the right to deviate from these allocation levels where it believes this is in the best interests of investors in the Fund, taking into account the market conditions and opportunities, applicable regulations and politico economic factors.

BNP Paribas Asset Management India Pvt Ltd. (AMC) is the Indian arm of BNP Paribas Asset Management, the autonomous asset management business of the BNP Paribas Group. With a team of highly-experienced investment professionals located across eight Indian cities, it offers a full range of equity and fixed income mutual funds to investors in India.

BNP Paribas AMC is the investment manager for BNP Paribas Mutual Fund - part of a global network seeking to combine in-depth local market knowledge with the expertise gained from managing investments throughout numerous market cycles and conditions across the world. It also manages/advises assets through its Offshore Advisory & Discretionary Portfolio Management for investors.

For further information, please visit

Risk Factors:
The Scheme aims to actively manage the portfolio based on the detailed historical analysis done by the fund manager. We are of the belief that such strategy will help minimize the risk and optimize the risk return proposition for a long term investor. However there is no certainty that the active asset allocation approach will be able to deliver the results as tested. The risks associated with investments in equities include fluctuations in prices, as stock markets can be volatile and decline in response to political, regulatory, economic, market and stock-specific development etc. Further, to the extent the Scheme invests in fixed income securities, the Scheme shall be subject to various risks associated with investments in Fixed Income Securities such as Credit and Counterparty risk, Liquidity risk, Market risk, Interest Rate risk & Re-investment risk etc. The Scheme may use various permitted derivative instruments and techniques (including arbitrage strategy) which may increase the volatility of scheme’s performance. Risk factors associated with arbitrage strategy: On the date of expiry, when the arbitrage is to be unwound, there could be a discrepancy in the stock price and its future contract price even a minute before the market closes and hence, a possibility that the arbitrage strategy gets unwound at different prices. While reversing the spot-futures transaction on the Futures & Options settlement day on the Exchange, there could be a risk of volume-weighted-average-price of the market being different from the price at which the actual reversal is processed. This may result in basis risk. Further, the risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.

Investors should note that the portfolio of the Scheme is subject to changes within the provisions and limitations of SID. Please refer to SID available on our website ( for detailed Risk factors, asset allocation, investment strategy etc.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

BNP Paribas Mutual Fund
Asif Amin
(Direct) + 91 22 33704219          (Mobile) +91 99877 19380

Priya Panwekar
(Direct) + 91 22 29202040          (Mobile) +91 70456 54080


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