SIPs provide disciplined and systematic investing, helping investors average their entry prices and smooth out market volatility.
Balanced advantage funds or dynamic asset allocation funds automatically balance the allocation between equity and fixed income based on market conditions, making them suitable for both lump sum and SIP investments.
Deep dives
Overview of Baroda BNP Paribas Mutual Fund
Baroda BNP Paribas Mutual Fund is a joint venture between Bank of Baroda and BNP Paribas, combining their strengths in the financial services sector. The objective of the venture is to deliver global solutions to the masses in India, leveraging Bank of Baroda's local reach and brand reputation, as well as BNP Paribas' expertise in asset management.
Product Range and Investment Philosophy
Baroda BNP Paribas Mutual Fund offers a range of well-performing funds across equity, fixed income, and hybrid categories. Their approach to investing follows the business management valuation framework (BMV), which emphasizes evaluating the business, management, and valuation factors when making investment decisions. Their balance advantage fund has delivered strong performance over the past five years.
SIP Flows and the Growing Mutual Fund Industry
SIP flows in India have been on the rise, reaching around 15,000 crores per month. The steady growth of SIPs over the years reflects the multiplier effect it has created for investors. SIPs provide disciplined and systematic investing, helping investors average their entry prices and smooth out market volatility. The mutual fund industry in India has experienced significant growth, offering innovative products and making investing more accessible and convenient for retail investors.
Investment Opportunities and Recommendations
The podcast highlights the potential of Indian equities, given the country's economic stability, growth prospects, and favorable macroeconomic factors. The host recommends considering balanced advantage funds or dynamic asset allocation funds for both lump sum and SIP investments. These funds automatically balance the allocation between equity and fixed income based on market conditions. Moreover, systematic withdrawal plans (SWPs) can be an effective way for retirees or individuals seeking a regular income stream from a lump sum investment.
On this episode of #PaisaVaisa, Anupam is joined by Suresh Soni, CEO of Baroda BNP Paribas Mutual fund. Dicussing the recent trends in the Mutual fund industry, they talk about the new technologies, developments and improvements in the investment sector and overall all mutual fund penetration in India. Suresh gives his professional insights on how investors can make effective investments through SIPs and get compounding returns. Active vs Passive Investing, outlook on Equity, debt mutual funds and more on this episode of Paisa Vaisa!