Baroda BNP Paribas AMC launches GIFT City US Small-Cap Fund

The underlying fund will be the $1.4 billion BNP Paribas US Small Cap Fund which has delivered a 3-year USD CAGR of 14.27%, according to AMC data.

Baroda BNP Paribas Asset Management has announced the launch of India’s first fund from GIFT City dedicated exclusively to US small-cap stocks - The Baroda BNP Paribas GIFT US Small Cap Fund. The fund house stated that the launch is intended to widen access to international markets and is open to resident Indian investors using the RBI liberalised remittance scheme limits available for individuals and family offices.

According to a release, the fund will operate as a Restricted Scheme, investing in the BNP Paribas US Small Cap Fund that has outperformed the Russell 2000 Index in 10 of the last 12 years, generating alpha in varied market conditions. GIFT City offers restricted and retail fund schemes. Restricted schemes target accredited or sophisticated investors, allow flexible structures, and require higher minimum investments.

The underlying fund has delivered a 3-year USD CAGR of 14.27%, according to AMC data.

“The US equity markets continue to show resilience and leadership in a volatile global landscape, and we see a compelling case for broadening exposure beyond the mega-cap names that have driven recent gains. U.S. small caps offer an attractive opportunity at this stage of the cycle – benefiting from a potential Fed pivot, relative valuation discounts to large caps, and increased domestic orientation as geopolitical risks persist,” said Geoff Dailey, Lead Portfolio Manager of the BNP Paribas US Small Cap Fund said in the note.

As of June 30, 2025, the underlying BNP Paribas US Small Cap Fund held 79 stocks, with top positions including consumer names like Shake Shack, industrial and safety equipment maker MSA Safety, semiconductor inspection company Nova Ltd., mortgage insurer Radian Group, and environmental services player Casella Waste Systems. Other notable holdings span diversified industrials such as nVent Electric and Watts Water Technologies, as well as specialty chemicals group Sensient Technologies and medical device firm iRhythm Technologies. Sector-wise, the portfolio is tilted toward Financials (18.6%), Industrials (16.9%), Health Care (16.6%) and Information Technology (14.7%), while maintaining smaller exposures to Consumer Discretionary, Real Estate, Materials, Utilities, Energy and Consumer Staples.

Baroda BNP Paribas AMC set up its GIFT City branch in 2024 and is registered with the International Financial Services Centre Authority (IFSCA) as a Retail Fund Management Entity.

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