According to the fund house, the scheme operates as a Restricted Scheme under GIFT City regulations and invests in the BNP Paribas US Small Cap Fund, a US-based fund managing $1.4 billion in assets.
The underlying fund has recorded a 3-year dollar CAGR of 14.27%, as per data provided by BNP Paribas Asset Management.
Morningstar has rated the underlying fund 3 stars, and it has reportedly outperformed the Russell 2000 Index in 10 of the last 12 years.
Sanjay Grover, Managing Director & CEO of Baroda BNP Paribas AMC, said the new fund gives investors an additional route to allocate capital to US small-cap companies under the Liberalised Remittance Scheme.
He noted that earlier, several Indian investors seeking global diversification were constrained due to SEBI’s $7 billion overseas investment cap for mutual funds.
The underlying fund is managed by a US-based investment team led by Geoff Dailey, who said current valuations and market conditions offered potential opportunities within the small-cap segment.
Dailey added that small-cap companies provide broader exposure to the US economy compared with large-cap indices that are concentrated in technology stocks.
Baroda BNP Paribas AMC set up its GIFT City branch in 2024 and is registered with the International Financial Services Centre Authority (IFSCA) as a Retail Fund Management Entity.
The fund house stated that the launch is intended to widen access to international markets for Indian residents, family offices, HNIs and UHNIs through a regulated, dollar-denominated structure.
The company said the announcement is for information only and does not constitute a solicitation to subscribe to the scheme.
