Baroda BNP Paribas Gilt Fund Celebrates 23rd Anniversary; Crosses Rs1,500 Crore AUM with Over 4X Growth for Investors

Baroda BNP Paribas Gilt Fund Celebrates 23rd Anniversary; Crosses Rs1,500 Crore AUM with Over 4X Growth for Investors

Mumbai, May 05, 2025: Baroda BNP Paribas Mutual Fund, one of India’s leading asset management companies, is commemorating the 23rd anniversary of its flagship fixed income offering — Baroda BNP Paribas Gilt Fund with a dual milestone of surpassing the ₹1,500 crore in Assets Under Management (AUM) mark, underlining growing investor confidence in long-duration government bond strategies.

Since inception, the Baroda BNP Paribas Gilt Fund has delivered consistent long-term returns, transforming an initial investment of ₹10,000 into ₹41,919.60 as of March 31, 2025 — an over four-fold increase. Over the past 12 months alone, the scheme’s regular plan has provided an impressive 9.61% return, making it a preferred choice for investors seeking low-risk, long-duration debt investments with capital appreciation potential.

Managed by Gurvinder Singh Wasan, CFA, Senior Fund Manager and Prashant Pimple, Chief Investment Officer – Fixed Income at Baroda BNP Paribas Mutual Fund, the scheme primarily invests in high-quality, risk-free government securities and State Development Loans (SDLs). The fund takes strategic duration calls to capture potential gains from expected RBI interest rate cuts, making it an ideal option for investors looking to benefit from a falling interest rate environment. With the latest RBI monetary policy changing its stance to accommodative from neutral, schemes such as these, are well positioned to benefit from the capital appreciation that will result from the RBI cutting repo rates.

“We expect to run a portfolio duration close to the duration of the benchmark 10-year G-Sec security. This is based on our view that rates can come down lower given inflation adjusted real rates are still in positive zone. The portfolio of the Baroda BNP Paribas Gilt Fund is positioned to actively benefit from the spreads between G-Secs and SDLs as well as from our expectations of softening of the yield curve led by positive fundamentals for India’s bond markets,” said Prashant Pimple, Chief investment officer Fixed income, Baroda BNP Paribas Asset Management (India).

The fund maintains zero default risk, ensuring stable and secure returns. It’s growing AUM and consistent performance reaffirm its position as one of the best gilt mutual funds in India.