The open-ended debt scheme invests in money market instruments and focuses on short-term maturities. The portfolio largely comprises high-credit-quality instruments, with the majority of investments rated AAA or A1+ equivalent.
As of January 15, securities rated below AAA accounted for around 20% of the portfolio, while statutory liquidity ratio (SLR) investments and cash together made up approximately 15%.
As on January 15, the fund’s regular plan delivered a one-year return of 7.16%, compared with sub-7% returns posted by its benchmark, the CRISIL Money Market A-I Index.
Since inception, an investment of ₹1 lakh would have grown to about ₹1.42 lakh, indicating steady accrual over the period.
Portfolio metrics showed a yield to maturity (YTM) of 6.78%, a modified duration of 0.43, and an average maturity of 0.43 years as of January 15. The portfolio was tilted towards instruments with maturities in the four- to six-month bucket, reflecting a short-duration strategy.
The fund follows an active approach to interest rate and liquidity management within the money market segment. Vikram Pamnani and Gurvinder Singh manage the scheme.
Money market funds are typically used by investors to park short-term surplus funds due to their relatively low interest rate risk, lower credit risk compared with longer-duration debt schemes, and higher liquidity.
Baroda BNP Paribas Mutual Fund is managed by Baroda BNP Paribas Asset Management India, a joint venture between Bank of Baroda and BNP Paribas Asset Management.
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