Baroda BNP Paribas introduces health and wellness equity fund

INDIA – Baroda BNP Paribas Asset Management India has rolled out a new thematic mutual fund focused on healthcare and wellness.

Called the Baroda BNP Paribas Health and Wellness Fund, this open-ended equity scheme opened for subscription on June 9, 2025, and will close on June 23, 2025.

This fund aims to capitalize on long-term growth in healthcare and wellness, both in India and globally.

It will invest in companies that benefit from rising healthcare needs, including sectors like pharmaceuticals, diagnostics, medical technology, hospitals, insurance, and healthcare research.

The fund’s investment scope encompasses over 100 listed companies with a combined market value of approximately US$ 200 billion.

The fund house says India’s healthcare sector is evolving rapidly. While per-person spending on healthcare remains low by global standards, it’s rising due to factors such as higher income, better awareness, an aging population, and an increase in chronic illnesses.

Suresh Soni, CEO of Baroda BNP Paribas Asset Management, believes the sector offers significant long-term potential.

“From childhood to old age, the need for health and wellness is constant. With India’s healthcare spending starting from a low base, this sector holds promising long-term potential,” he said.

Sanjay Chawla, Chief Investment Officer for equity, added, “India is witnessing a surge in chronic illnesses like heart disease, diabetes, and cancer.”

He noted this growing burden boosts demand for both preventive and curative care, making it a strong investment theme.

The fund will invest in a mix of large-, mid, and small-cap companies that align with the healthcare and wellness theme.

According to the company, the BSE Healthcare Index has regularly outperformed broader indices, such as the BSE 500 TRI, over the last 1, 3, 7, and 15 years.

The fund is best suited for investors who can stay invested for at least three years and are comfortable with higher risk, as it focuses on a single theme.

Baroda BNP Paribas Mutual Fund is a joint venture between Bank of Baroda and BNP Paribas Asset Management.

It manages 43 mutual fund schemes and operates in 121 cities and towns across India, offering a variety of investment products in equity, debt, hybrid, and international categories.