4X growth and counting: Baroda BNP Paribas Gilt Fund hits Rs 1,500 crore

Business Standard

06-05-2025

Baroda BNP Paribas Gilt Fund, a flagship fixed income mutual fund, has completed its twenty third year with a dual milestone of surpassing Rs 1,500 crore in Assets Under Management (AUM), and rewarding investors with 4X growth.
Since inception, the Baroda BNP Paribas Gilt Fund has delivered consistent long-term returns, transforming an initial investment of RS 10,000 into Rs 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 a 9.61% return, making it a preferred choice for investors seeking low-risk, long-duration debt investments with capital appreciation potential," Baroda BNP Paribas Mutual Fund said in a statement.
The fund maintains zero default risk, ensuring stable and secure returns.
"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).
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," the company said in a statement.
"'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," said Pimple.