If you’re looking to ride the wave of India’s energy boom, the Baroda BNP Paribas Energy Opportunities Fund NFO is where you wanna be.
Energy is more than just a resource—it’s the engine driving a nation’s growth. For rapidly developing countries like India, energy demand skyrockets as the economy transforms.
India’s Energy Sector: A Snapshot
- Market Growth: According to the India Brand Equity Foundation (IBEF), India’s energy market is projected to reach US$ 500 billion by 2025, with a significant shift toward renewable energy sources like solar and wind.
- Investment Surge: The sector is set to receive ₹40 lakh crore (US$ 500 billion) in investments over the next decade, driving infrastructure growth and energy transformation.
- Power Generation: By 2025, India is expected to generate 2,090 billion kWh of electricity, reflecting its robust development in energy infrastructure.
A lot of this growth will come from moving to renewable energy investments like solar and wind. This will definitely boost the India energy sector in 2025; so keep an eye on the energy-focused mutual funds & stocks.
With all this growth on the horizon, the Barodha BNP Paribas Energy Opportunities Fund NFO gives investors a chance to tap into India’s energy revolution and be part of the green revolution.
Bullsmart Suggests: Top 5 Thematic Funds For 2025: Green Energy, EVs, & Next-Gen Tech
Why Invest in Energy Sector in India?
Investing in the energy sector means putting your money into companies that produce or supply energy, oil, gas, solar, or wind power. Here’s why it’s worth considering:
- Potential for Growth
Energy companies can bring solid returns, especially as global energy demand rises. Investing in renewable energy sources like solar and wind could pay off as the world shifts to cleaner options.
Pro Tip: Use tools like a SIP Calculator , CAGR Calculator or Lumpsum Calculator to evaluate your returns and optimize your investment strategy.
- Diversification
Energy investments can help balance risk in your portfolio, as the energy sector often reacts differently than other industries.
- Economic and Job Growth
Investing in energy, especially renewables, drives economic growth and creates jobs. For every rupee invested in green energy, three times more jobs are created than in fossil fuels.
- Environmental Impact
Supporting renewable energy helps reduce pollution and carbon emissions, making it a great way to invest for both your wallet and the planet.
- Tax Implications
Some energy-related investments, like Equity Linked Savings Schemes (ELSS), offer tax-saving benefits under Section 80C of the Income Tax Act. By investing in these funds, you can not only grow your wealth but also reduce your taxable income, making it a win-win for your financial goals.
Check out the top 5 ELSS funds in 2024:
| Fund Name | Expense Ratio (%) | 1 Year Return (%) | AUM (INR) |
| Motilal Oswal ELSS Tax Saver Fund | 0.64% | 21.15% | 4,415 Cr |
| HSBC Tax Saver Equity Fund | 1.60% | 20.30% | 261 Cr |
| LIC MF ELSS Tax Saver Fund | 0.96% | 19.24% | 1,150 Cr |
| WhiteOak Capital ELSS Tax Saver Fund | 0.70% | 18.61% | 318 Cr |
| SBI Long Term Equity Fund | 0.95% | 18.55% | 27,791 Cr |
Data as of 28.01.25.
Pro Tip: For more suggestions on future actions related to tax savings, keep an eye on the trends.
If you want to learn more about the art of savings, we suggest you plug your earphones in and tune into this gem:
About Baroda BNP Paribas Energy Opportunities Fund NFO
The Baroda BNP Paribas Energy Opportunities Fund is a Sectoral/Thematic Equity Fund that focuses on investing in companies engaged in both traditional and renewable energy sectors. This includes companies involved in oil and gas exploration, refining, energy production, power transmission, and the transition to renewable energy sources like solar, wind, and hydropower.
The fund aims to capitalize on India’s growing energy demand, driven by economic development, infrastructure investments, and government reforms. With a focus on long-term capital appreciation, it’s suited for investors who are willing to stay invested for at least 3 years to fully benefit from the sector’s growth potential.
Key Details of the NFO
Check this table to gain quick insights about the overall details of the NFO at a glance:
| Attributes | Details |
| Asset Management Company | Baroda BNP Paribas Asset Management India Pvt. Ltd. |
| Fund Manager | Sanjay Chawla Sandeep Jain |
| Risk | Very High |
| Category | Equity Scheme – Sectoral / Thematic Fund |
| NFO Opens | 21-Jan-2025 |
| NFO Closes | 04-Feb-2025 |
| Benchmark Index | Nifty Energy TRI |
| Expense Ratio | Nil |
| Exit Load | 1% if redeemed/switched within 1 year for more than 10% of units; NIL for other cases. |
| Min. Investment(₹) | ₹1,000 |
| Min. Investment(₹) for SIP | Daily/Weekly/Monthly: ₹500Quarterly: ₹1,500 |
| Minimum Additional Investment(₹) | ₹1,000 |
Data as of 28.01.25.
Investment Objective
The fund’s investment objective is to achieve long-term capital growth by investing in equity and equity-related instruments of companies involved in activities such as exploration, production, distribution, transportation, and processing of traditional and new energy.
This includes sectors like oil & gas, utilities, and power. However, the fund does not guarantee any returns or assure the achievement of its objectives.
Investment Strategy
This scheme plans to channel 80% of its funds into companies tied to the energy theme, while the remaining 20% can be invested in businesses outside of it.
To keep things flexible, a small portion might also go into money market instruments for handling liquidity needs.
The fund will be actively managed, following a bottom-up approach–basically, picking individual companies expected to grow with the booming energy sector.
Pro Tip: You can also check out XIRR returns of all these funds to deepen your understanding of the fund’s performance.
About the Nifty Energy TRI Benchmark Index
The Nifty Energy TRI benchmark index is a stockmarket index that tracks the performance of companies in India’s energy sector, including industries like petroleum, gas, and power. Managed by NSE Indices Limited, part of the National Stock Exchange (NSE), this index helps investors to see how the sector is performing overall.
Here are the returns shown by the index over the referred period of time:
| Index Returns (%) | QTD | YTD | 1 Year | 5 Years | Since Inception |
| Price Return | -19.46% | 5.14% | 5.14% | 17.21% | 15.98% |
| Total Return | -19.24% | 6.50% | 6.50% | 19.68% | 18.66% |
Data as of 31.12.24.
Key Features
- Composition: It includes the top 10 companies in the energy sector listed on the NSE, selected based on their market value.
- Calculation Method: The index is calculated by considering the market value of the shares that are easily tradable. It’s updated every six months to make sure it reflects the latest trends in the energy sector.
- Total Returns Index (TRI): This version of the index includes both the capital gains and the dividends paid by the companies, giving a fuller picture of the overall return.
Do you know how a benchmark index works? If not, we suggest that you check out the functionality or else you might end up like this:
Functionality
The NIFTY Energy Index has several key uses:
- Benchmarking: Fund managers use it to compare how their energy-focused portfolios are performing.
- Investment Products: The index serves as a benchmark for financial products like index funds, ETFs, and structured products, so investors can easily invest in the energy sector.
- Market Analysis: Investors and analysts use the index to assess trends and the overall health of the energy sector, helping them make smarter decisions.
By keeping an eye on the NIFTY Energy Index, investors can better understand how the energy sector in India is doing and make more informed investment choices.
How Baroda BNP Paribas Energy Opportunities Fund NFO Stands Out?
The Baroda BNP Paribas Energy Opportunities Fund NFO stands out for its unique approach to India’s energy sector. It balances investments across traditional (oil, gas, coal) and renewable energy sources (solar, wind, hydropower), unlike many energy funds that focus solely on one segment.
The fund further diversifies across the entire energy value chain—from extraction to production, transmission, and distribution—providing comprehensive exposure to the sector.
Managed by seasoned professionals and benchmarked against the Nifty Energy TRI, it’s a thematic fund tailored for long-term investors who want targeted exposure to India’s growing energy landscape.
About the Fund Managers
Mr. Sanjay Chawla
- Designation: Chief Investment Officer – Equity (CIO-Equity)
- Age & Qualification: 57 years; MMS from BITS, Pilani
Experience
- Over 33 years in fund management, equity research, and management consultancy.
- Former Chief Investment Officer at Baroda Asset Management India Limited.
- Senior Fund Manager-Equity at Birla SunLife AMC, managing diverse strategies.
- Head of Research at SBI Capital Markets.
- Previous roles in equity research with Motilal Oswal Securities, IDBI Capital Markets, SMIFS Securities, IIT Invest Trust, and Lloyds Securities.
Other Funds Managed
- Baroda BNP Paribas Multi Cap Fund
- Baroda BNP Paribas ELSS Tax Saver Fund
- Baroda BNP Paribas Focused Fund
- Baroda BNP Paribas Large & Mid Cap Fund
- Baroda BNP Paribas Flexi Cap Fund
- Baroda BNP Paribas Balanced Advantage Fund
Mr. Sandeep Jain
- Designation: Co-Fund Manager
- Age & Qualification: 40 years; Chartered Accountant (ICAI), B.Com (Hons) from Kolkata University
Experience
Over 16 years in research and fund management.
- Former Fund Manager and Research Analyst at Aditya Birla Sunlife Insurance Limited.
- Previous roles with Sundaram Asset Management Company Limited, Emkay Global Financial Services, and IDBI Capital Markets & Securities Limited.
Other Funds Managed
Baroda BNP Paribas Multi Cap Fund!
Baroda BNP Paribas Banking and Financial Services Fund
Both fund managers bring extensive experience and expertise to the scheme, ensuring a well-rounded approach to fund management.
Who should Invest in Baroda BNP Paribas Energy Opportunities Fund NFO?
- If you’re excited about India’s booming energy sector, this could be your chance to jump in.
- Perfect for those who believe in the future of clean energy and want to ride the wave of growth.
- Ideal for long-term investors (3+ years) who are okay with a bit of risk for potentially big returns.
- Great for anyone looking to diversify their portfolio with energy-focused investments, including solar, wind, and oil companies.
- A solid pick for those who want to support the green energy movement and make an impact.
Who should Avoid Investing in Baroda BNP Paribas Energy Opportunities Fund NFO?
- If you’re not comfortable with high risk, this might not be the right fit for you.
- Not for those who need short-term gains or are looking for quick returns.
- If you’re not into the energy sector or don’t want your money tied to that industry, better skip this one.
- If you’re someone who prefers safer, more stable investments, this fund’s high volatility could be a dealbreaker.
- Also, if you’re not okay with the idea of diversifying into renewable and traditional energy sources, this may not match your investment style.
Bottom Line
To wrap it up, if you’re looking to cash-in on India’s energy revolution, the Baroda BNP Paribas Energy Opportunities Fund NFO could be your ticket.
With renewable energy like solar and wind leading the charge, this fund offers a chance to invest in a sector that’s not just booming, but evolving in a sustainable way.
It’s perfect for anyone excited about the future of clean energy and ready to ride the wave of growth happening in India’s energy space. If you’re cool with a bit of risk for potentially big rewards and a long-term commitment, this could be a solid pick.
But hey, if you’re not into high-risk, high-reward situations, or you need quick returns, this might not be for you. It’s not a short-term play, and the energy sector can be volatile. Also, if you’re not feeling the energy space or prefer more stable, less risky options, you might wanna pass on this one.
At the end of the day, it’s about what vibe fits your investment style.
So, think about your goals, and if this aligns with them, go for it! Invest with Best SIP Plaform.
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