Mumbai, Mar 30: At a time when the Indian Rupee remains under pressure, investors are increasingly looking for solutions that can both benefit from rupee depreciation and provide diversified exposure to global equity markets. The Baroda BNP Paribas Aqua Fund of Fund offers one such opportunity by combining overseas investing with a differentiated global theme.
Dual advantage: global diversification and currency depreciation
The Baroda BNP Paribas Aqua Fund of Fund allows Indian investors to gain exposure to international equities which invest in companies within the global water value chain. These companies support the protection and efficient use of water as a natural resource. The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of BNP Paribas Funds Aqua (Lux). Since the funds proceeds are invested in global markets denominated in stronger currencies, the scheme also doubles up as an option for investors seeking to hedge domestic currency risk while participating in select global growth opportunities.
The scheme has a minimum lump-sum investment requirement of just INR 5,000 and does not charge any entry load. Investors can also adopt a disciplined approach through Systematic Investment Plans (SIPs) starting at INR 500 per month, with flexibility to invest in multiples of INR 1 thereafter.
Focus on the global water opportunity
The fund follows a thematic strategy, investing through an underlying sub-fund that focuses on the global water value chain. It targets companies involved in the protection, treatment, distribution, and efficient use of water—an increasingly critical natural resource amid rising global scarcity and one which has come under focus in the developments in the Middle East.
The growing stress on clean water availability across regions, industries, and populations has emerged as a key structural driver for the theme. This long-term demand has supported the scheme’s performance across market cycles.
Performance highlights
The Baroda BNP Paribas Aqua Fund of Fund has delivered returns of 26.84% over the last one year and 14.52% CAGR over the last three years. An investment of INR 1 lakh in the scheme would have grown to approximately ₹1.50 lakh in just three years.
For long-term investors, systematic investing has proven even more rewarding. A monthly SIP of INR10,000 since last 3 years would be worth over ₹6.86 lakhs as of end-February 2026, highlighting the power of disciplined investing combined with global exposure.
Diversification across sectors and geographies
The fund is a thematic fund which predominantly in units of BNP Paribas Funds Aqua . It has exposure across multiple sectors such as industrials, utilities, and healthcare, reducing reliance on any single industry. Geographically, its investments span several developed markets including the United States, United Kingdom, France, Switzerland, Netherlands, Denmark, Germany, Austria, Sweden, and Japan, among others.
Liquidity and exit load structure
The scheme is open-ended, offering liquidity to investors. An exit load is applicable only if units are redeemed or switched out within 12 months from the date of allotment, making it suitable for investors with a medium- to long-term investment horizon.
By combining currency-led benefits, global equity exposure, and a compelling sustainability-linked theme, the Baroda BNP Paribas Aqua Fund of Fund positions itself as a differentiated option for investors looking beyond domestic markets.
