Baroda BNP Paribas Mutual Fund has recently introduced the Lakshya SIP, a unique investment plan blending the benefits of both SIP (Systematic Investment Plan) and SWP (Systematic Withdrawal Plan). Designed for investors aiming to grow wealth and secure regular income, this scheme provides a structured approach to long-term investing and monthly income, making it an attractive option in India’s rapidly growing mutual fund market.
How Lakshya SIP Works: Monthly Investments and Strategic Withdrawals
Lakshya SIP allows investors to begin their journey with regular SIP contributions over flexible terms—spanning 8, 10, 12, or 15 years—using any of the Baroda BNP Paribas equity-oriented mutual fund schemes. These options give investors the flexibility to build their portfolios over time while benefiting from the high potential returns associated with equity investments.
After completing the selected SIP tenure, the accumulated funds are transferred to one of Baroda BNP Paribas Mutual Fund’s five hybrid schemes based on the investor’s choice. This switch to hybrid plans is the foundation of the Lakshya SIP’s strategy, allowing for a balance of equity and debt exposure aimed at reducing risk while sustaining growth. Following this switch, a pre-determined SWP takes over, providing a reliable monthly income for investors.
India’s Growth Potential and the Appeal of Equities
The Lakshya SIP launch aligns well with India’s strong economic trajectory. According to Suresh Soni, CEO of Baroda BNP Paribas Asset Management, India is positioned to be the fastest-growing major economy, driven by favorable policies and a rising interest in equities. Traditional Indian investors have often leaned towards safer, non-equity investments; however, more investors are now exploring the equity market as a viable avenue for faster wealth growth. Mutual funds are increasingly seen as a valuable option for long-term returns, and SIPs are becoming the preferred method for systematic, disciplined investing.
Growing SIP Popularity and the Added Top-Up Feature
India’s mutual fund industry has witnessed a record inflow of ₹25,323 crore via SIPs as of October 2024—a 49% year-on-year increase. The Lakshya SIP capitalizes on this growing SIP trend, further enhanced by a top-up feature. Investors can increase their SIP amounts over time, allowing their investments to grow along with their income and harness the power of compounding.
This feature reflects Baroda BNP Paribas Mutual Fund’s commitment to providing flexible and growth-oriented solutions that adapt to changing investor needs. The plan is part of the company’s broader “Together for More” strategy, aiming to empower investors with accessible and profitable investment solutions.
Why Lakshya SIP is the Right Investment for Long-Term Wealth and Regular Income
Lakshya SIP by Baroda BNP Paribas Mutual Fund combines consistent monthly contributions with a strategic withdrawal setup, ideal for those looking for both wealth creation and dependable monthly income. By aligning investments with India’s economic momentum and encouraging disciplined SIP habits, Lakshya SIP aims to deliver solid, long-term returns, empowering Indian investors in their wealth-building journey.
