"BNP Paribas Income & Gold Fund", floats on; NFO to close on May 31

BNP Paribas Mutual Fund launched a new open ended debt scheme named "BNP Paribas Income & Gold Fund."The New Fund Offer (NFO) price for the scheme was Rs 10 per unit. NFO opened for subscription today and will close on May 31.

According to the offer document filed with SEBI, the entry load was nil, while the exit load of 1 per cent will be charged if redeemed within 12 months and 0.50 per cent if redeemed after completion of 12 months upto 18 months from the date of allotment of units, or else nil.

The minimum application amount was Rs 5,000 and in multiples of Rs 1 thereafter. The two options were available under the Plan of the Scheme viz. Growth and Dividend Payout option.

The performance of the scheme will be standardized against CRISIL Short Term Bond Fund Index + Price of Gold (neutral allocation: 75:25) and Puneet Pal will be the Fund Manager of the scheme.

The asset allocation of scheme will be in such a way that the objective of the scheme to generate income will be met, through investments in a portfolio constituted of debt and money market securities, along with investments in Gold Exchange Traded Funds (ETFs). Hence, the scheme will allocate 65 to 90 per cent of assets in debt instruments and 10 to 15 per cent in Gold ETFs.