Baroda BNP Paribas AMC debuts India’s First Gift City Fund investing in US Small Caps
by Prashant Kapadia/NHN
Mumbai, November 20th, 2025 – Leading asset management company Baroda BNP Paribas Asset Management India Pvt. Ltd. (BBNPP AMC) through its GIFT City branch has launched India’s first-ever fund offering investors direct access to the US small-cap market — the Baroda BNP Paribas GIFT US Small Cap Fund.
The newly launched fund is also the first GIFT City-based fund investing in US small-cap companies, giving Indian investors an alternate route to participate in the US equity markets through a regulated, dollar-denominated investment fund leveraging the remittance limits allowed to Resident Indians by the RBI under the Liberalised remittance scheme under the Overseas Portfolio Investment route.
“As a GIFT City-registered Restricted Scheme, the Baroda BNP Paribas GIFT US Small Cap Fund is an efficient investment option for investors seeking to diversify their investments into US Small Caps. We believe US small caps are a potentially attractive asset class that are poised to benefit from multiple potential tailwinds in ’25” said Mr Sanjay Grover, Managing Director & CEO of Baroda BNP Paribas AMC
A Breakthrough Route for Indian Investors
Until now, Indian investors seeking international diversification faced limited options as most overseas mutual fund schemes had hit SEBI’s $7 billion overseas investment cap. The Baroda BNP Paribas GIFT US Small Cap Fund, structured as an IFSCA-regulated Restricted Scheme, addresses thisconstraint, reopening global access for individuals, Family Offices, HNIs and UHNIs.
The fund will operate as a Restricted Scheme, investing into the BNP Paribas US Small Cap Fund, a 3-star rated scheme by Morningstar that has outperformed the Russell 2000 Index in 10 of the last 12 years, generating alpha in varied market conditions. (Source: Morningstar as on 30thSeptember 2025)
The underlying $1.4 billion BNP Paribas US Small Cap Fund has delivered a 3-year USD CAGR of 14.27%, (Source: BNP Paribas AM) and is managed by a seasoned and experienced US-based investment team led by Geoff Dailey. The fund management team, with an average experience of over 20 years, has built a selected portfolio of small-cap stocks diversified across sectors.
“The U.S. equity markets continues 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 – benefitting 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.
“For investors seeking to diversify beyond the big tech sector, small caps also offer broader exposure to the U.S. economy beyond the tech-heavy S&P 500 – hence allowing investors to tap into the underappreciated and under-researched part of the U.S. growth engine,” Geoff added.
About Baroda BNP Paribas Asset Management India Pvt Ltd.: Baroda BNP Paribas Mutual Fund, the mutual fund arm is managed by Baroda BNP Paribas Asset Management India Pvt. Ltd. (AMC), a strategic partnership between Bank of Baroda and BNP Paribas Asset Management, a part of the BNP Paribas Group. Baroda BNP Paribas Mutual Fund has strong nationwide presence across 121 towns and cities and services over a million investor folios across Bharat.
The AMC, for its offshore business, set up its branch in GIFT City in 2024 and has subsequently registered with International Financial Services Centre Authority (IFSCA) as Retail Fund Management Entity (FME) bearing registration number: IFSCA/FME/III/2023-24/099 with fund management services and advisory mandates managed by the Offshore team.
The AMC plans to develop its presence in the GIFT City by offering investment management solutions and services to investors across asset classes. The AMC has a vision to create a positive impact on people’s lives by delivering sustainable value for their investments.