^Investors should note that the allocations based on PE model 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.
*The information on taxation is provided for only general information purposes, based on the Mutual Fund’s understanding of such tax laws in force as guided by the tax consultants. Investors are requested to note that fiscal laws may change from time to time and there can be no guarantee that the current tax position may continue in the future. Investors are advised to consult their tax advisor in view of individual nature of tax implication. Please refer below for the risk factors associated with investments by scheme in equity, debt and arbitrage.
The scheme aims to actively manage equity and debt exposure in the portfolio based on the detailed historical analysis done by the fund manager. We are of the belief that such strategy will minimize the risk and optimize the risk return proposition for a long term investor. However there is no certainty that this active asset allocation approach will be able to deliver the results as tested. The underlying assumptions of the model on the correlation between the three asset classes (i.e. equity, debt and arbitrage) might not hold true at all points in time which might impact the returns.
Further, 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. The Scheme may pursue only a limited degree of diversification as it may invest in a limited number of equity and equity related securities or invest a greater proportion of assets in the securities of very few issuers (within the limits permitted by regulation) or be concentrated on a few market sectors as compared to a diversified scheme. The Scheme is also expected to have higher market liquidity risk on account of concentration. This could have implications on the performance of the Scheme. The scheme may be more sensitive to economic, business, political or other changes and this may lead to sizeable fluctuation in the Net Asset Value of the scheme.
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., Further, 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.
Please refer to Scheme Information Document available on our website (www.bnpparibasmf.in
) for detailed Risk Factors, assets allocation, investment strategy etc.
The material contained herein has been obtained from publicly available information, internally developed data and other sources believed to be reliable, but BNP Paribas Asset Management India Private Limited (BNPPAMC) makes no representation that it is accurate or complete. BNPPAMC has no obligation to tell the recipient when opinions or information given herein change. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. This information is meant for general reading purpose only and is not meant to serve as a professional guide for the readers. Except for the historical information contained herein, statements in this publication, which contain words or phrases such as 'will', 'would', etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. BNPPAMC undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. The words like believe/belief are independent perception of the Fund Manager and do not construe as opinion or advise. This information is not intended to be an offer to sell or a solicitation for the purchase or sale of any financial product or instrument. The information should not be construed as an investment advice and investors are requested to consult their investment advisor and arrive at an informed investment decision before making any investments. The Trustee, AMC, Mutual Fund, their directors, officers or their employees shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages arising out of the information contained in this document.
BNP Paribas Asset Management India PVT. LTD.
Regd. Off.: BNP Paribas House, 1 North Avenue, Maker Maxity, Bandra Kurla Complex, Bandra (East), Mumbai - 400051 - India. |
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Invest online @ www.bnpparibasmf.in