BNP Paribas Asset Management India has launched an open-ended balanced fund to help investors generate long-term wealth creation.

The fund, which will be available for subscription on Friday, would invest 30-60 per cent in equity and equity-related instruments, 5-10 per cent in equity arbitrage and 30-60 per cent in debt, money market instruments and liquid funds with an objective to improve risk adjusted returns through diversification across asset classes.

Karthikraj Lakshmanan, Senior Equities Fund Manager, BNP Paribas Mutual Fund, said the new fund offering is focussed on creating long-term wealth through a diversified portfolio of equity, arbitrage and debt and construct equity portfolio of fundamentally robust companies. “Given the prevailing market conditions, the team intends to target the shorter end of the yield curve. The strategy of this fund could be considered by conservative investors seeking limited exposure to equities,” he said.

Anand Shah, Deputy CEO, BNP Paribas AMC, said the fund house is committed to continue innovating to meet clients’ investment needs and leverage on in-house ‘Business Management Valuation’ model which helps it identify companies with better earnings growth.

The new offering will be the fourteenth fund by BNP Paribas MF since its foray into India. Its total average AUM stands at ₹5,977 crore. This is in addition to the $1.04 billion managed and advised by the company through its Offshore Advisory and Discretionary Portfolio Management for international investors, it said.

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