On June 10, 2024, Baroda BNP Paribas Mutual Fund introduced the Baroda BNP Paribas Manufacturing Fund, a thematic equity fund focused on investing in companies actively engaged in manufacturing. This fund also targets a diversified portfolio of sectors related to manufacturing, including auto and auto ancillaries, capital goods, healthcare, chemicals, oil and gas, and consumable fuels. The New Fund Offer (NFO) is open from June 10, 2024, to June 24, 2024.

The minimum lump sum investment is Rs 1,000, while the minimum SIP investment is Rs 500, with subsequent investments in multiples of Rs 1. An exit load of 1% applies if more than 10% of units are redeemed or switched out within one year from the date of allotment. The fund will also invest in new manufacturing plants and facilities, support the development of new-age technology solutions, provide allied services related to the manufacturing lifecycle, and include companies listed in India with manufacturing facilities abroad or vice versa. Government initiatives are significantly boosting the manufacturing sector, with a target to increase the manufacturing base from 17% to 25% of GDP. Schemes like Skill India, Atmanirbhar Bharat, and Production-Linked Incentive (PLI) are providing technical and financial support to bolster manufacturing in India. As major economies seek to diversify away from China to avoid supply chain disruptions, India's manufacturing sector is set for growth. Factors such as positive Foreign Direct Investment (FDI) flows, low manufacturing costs, and a large pool of educated young talent position India as a competitive option for global companies.

 Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund, stated, "The scheme offers a compelling investment opportunity as the manufacturing sector is poised for multi-decade growth fueled by growing consumption, investments, exports, changing geopolitical dynamics, and favourable government policies.” The scheme is benchmarked against the Nifty India Manufacturing TRI, which has provided returns of 26% and 23% over the past 3 and 5 years, respectively, according to the fund house.