BNP Paribas AMC has launched the New Fund Offer (NFO) of BNP Paribas Dynamic Equity Fund. It is an open-ended dynamic asset allocation fund that aims to provide capital appreciation by dynamically managing the portfolio of equity and equity related instruments (including arbitrage exposure), and fixed income instruments.

The NFO is available for subscription from February 14 to February 28.

The scheme intends to take a call on the equity allocation based on the trailing monthly median price-earnings (PE) ratio of the Nifty 50 Index. The endeavour of the scheme will be to increase exposure of equities at lower PE level (when the market appears cheaper). Conversely when the market becomes expensive (higher PE) the scheme will reduce its allocation to equities and move assets into cash future arbitrage/equity derivatives, debt and/or money market instruments.

“Markets can be volatile and the risks associated with that volatility can impact an investor’s decision to invest. With this new scheme, we intend to provide our investors an option to invest even when the markets are volatile," says, Sharad Sharma, managing director and CEO, BNP Paribas AMC.