Baroda BNP Paribas Balanced Advantage fund crosses Rs 5000 crore AUM mark as it nears its 8th anniversary

Baroda BNP Paribas Balanced Advantage fund crosses Rs 5000 crore AUM mark as it nears its 8th anniversary

Mumbai, September 21: Baroda BNP Paribas Balanced Advantage Fund has crossed the Rs 5,000 crore assets under management (AUM) milestone as it approaches its eighth anniversary, marking another milestone in the open-ended dynamic asset allocation fund‘s journey of wealth creation for investors.

The scheme has consistently outperformed its benchmark, the Nifty 50 Hybrid Composite 50:50 Index, over the one, three and five-year periods as well as since inception, buttressing its position as a core allocation to an investor’s portfolio (see table below).

How has the fund created wealth?

A Rs 1 lakh investment made at the scheme’s inception would be worth Rs 2,62,961 as of end-August 2026. The fund has also delivered a 10.8% SIP return over one year and a 12.75% compounded annualised SIP return since inception, outperforming the benchmark returns over 1,3,5 years and since inception.

An investor who had started a Rs 10,000 monthly SIP from the scheme’s inception would have accumulated Rs 15.42 lakh as of end-August 2026.

How does the dynamic asset allocation strategy work?

The fund dynamically adjusts its net equity allocation between 30% and 100%, based on the fund’s multi factor asset allocation model. While this rebalancing would could result in tax liabilities if an individual were to do it in their portfolio, since the Baroda BNP Paribas Balanced Advantage fund adjusts the asset allocations in its portfolio directly, an individual investor’s tax liability crystalises only, when they redeem their investments.

Baroda BNP Paribas MF has developed a proprietary valuation model that assesses multiple valuation parameters to guide the fund managers on the relative allocation between net equity and debt. The fund managers of this open-ended hybrid fund, actively manage duration and exposure to sectors and market capitalisations to capture upside, protect downside and control risks.

Diversified portfolio across asset classes

As of end-August 2026, 80.6% of the scheme’s assets were invested in equity, the balance in debt, cash and other assets. The equity portfolio comprised 67.7% large-cap, 24.6% mid-cap and 7.7% small-cap stocks.

The debt portfolio focuses on capital preservation and income accrual, with 48.8% allocated to sovereign and highest-credit-rated instruments, 36.3% to cash and cash equivalents and 15% to high-safety-rated AA/AA+ instruments.

Jitendra Sriram, Kushant Arora and Neeraj Saxena manage the equity allocation of the scheme while Prashant Pimple manages the fixed income allocation.

Investors can start with a minimum lump-sum investment of Rs 5,000 or a monthly SIP of Rs 500. The scheme has no exit load for redemptions of less than 10% of the investment within one year.

A balanced approach to long-term investing

With its Rs 5,000 crore AUM milestone, a dynamic equity-debt allocation and diversified portfolio, Baroda BNP Paribas Balanced Advantage Fund offers investors a structured approach to navigating changing market valuations while participating in long-term equity wealth creation.

As the fund approaches its eighth anniversary, investors looking to build a core wealth creating portfolio with moderate long-term risk by combining equity growth potential with income generation from debt; and active risk management can consider the Balanced Advantage Fund as part of their medium to long-term investment strategy.