Baroda BNP Paribas Mutual Fund has launched a new scheme, the Baroda BNP Paribas Nifty Midcap 150 Index Fund. This open-ended index fund aims to provide returns that closely mirror the performance of the Nifty Midcap 150 Total Returns Index.

By investing in the same securities that make up the index, the fund seeks to deliver returns similar to the overall market performance of mid-cap companies, with minor tracking errors and fees.

However, there is no guarantee that the fund will meet its objectives, the mutual fund house said.

The New Fund Offer (NFO) begins on October 14, 2024, and will remain open for subscriptions until October 28, 2024.

The fund requires a minimum subscription amount of ₹1,000, and investors can add to their holdings in multiples of ₹1 thereafter.

The scheme offers two plans—Regular and Direct—with a growth option in both.

The exit load is set at 0.2% if units are redeemed within 7 days from allotment but will not apply to redemptions after this period.

The Nifty Midcap 150 Index is used as the benchmark for this fund.

This index tracks 150 companies in the mid-cap segment, providing investors exposure to firms with high growth potential.

Being an open-ended scheme, investors will have the option to purchase, redeem, or switch units at NAV-based prices on any business day after the NFO closes.

The fund’s Net Asset Value (NAV) will be declared daily, allowing for easy tracking of performance.

The fund offers liquidity as investors can buy and sell units post-allotment without restrictions, except for the applicable exit load within the first seven days.

Additionally, dividends, if declared, will be paid within seven working days, as per the fund house.