HNIs with lots of patience can invest in BNP's Aqua Fund

Retail investors could give the new fund offer (NFO) of BNP Paribas Aqua Fund of Fund (FoF) a miss but rich individuals with a diversified portfolio may consider putting some money into the product. The scheme will invest in units of BNP Paribas Funds Aqua (Lux), an offshore fund that invests in global companies involved in the water sector.The scheme’s investments include companies in water infrastructure, treatment, saving and recycling technologies among others. Some of the top holdings of the fund are Pennon Group, Idex Corp, Fischer (Georg) Reg and Agilent Technology. The fund has delivered a return of 16.02% over the past five years, outperforming its benchmark MSCI World (R) index which returned 13.36%.“Water is too specific and a very narrow theme to invest in. Such themes could test investor patience and take a long time to play out, which retail investors will not be able to understand,” said Gajendra Kothari, CEO, Etica Wealth.For the more knowledgeable investors, this could be an option as there are few opportunities to invest in the water sector in India.“Those who understand the water story and eyeing gains from it can consider this fund, given the lack of stocks in the space in India,” said Rupesh Bhansali, head (distribution), GEPL Capital. The NFO closes on April 30.

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