Analysis of BNP Paribas Equity Fund

by khalid on 09/09/2011 · 0 comments

 The equity fund of BNP Paribas has seen an improvement lately. It is being said that the investors looking for bigger cap equities should definitely explore this fund as the improvement has been consistent since the past six months.

Formerly, it was called Fortis equity fund but after the merger, it was renamed to BNP equity fund. Top holdings of this equity fund by January 2009 end were in petroleum sector with 9% exposure; Reliance, ONGC, ITC and NTPC were its top holders but the funds were not performing very well at this stage.

The next six months saw a crucial shift of power and banks explored telecom sector and software sector. HDFC was dropped off the top ten holdings but still the exposure to this sector remained by and large strong. By July of 2010, the banks had 18% portfolio exposure which was followed by the software sector at 15%, petroleum and auto and construction. ONGC, Reliance Industries also made it to the top ten of the fund’s holdings. The next six months saw a turnover in the funds and there were reductions in number of fund holdings. This made a mark because the near term performance figure of one year was close.

Performance continued to improve for the next six months and today, the fund has Bharti and Idea in its top holdings. New entrants from other sectors, GAIL and Ranbaxy, were witness too. The fund is an out-performer as it has closed on Nifty for the 3rd year and 5th year time frame.

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