Thematic funds are a type of equity mutual fund, investing in companies that are focused on a specifi¬c theme.

Baroda BNP Paribas ESG Best-in-Class Strategy Fund is an open-ended equity scheme investing in equity and equity related securities of companies following Environmental, Social and Governance (ESG) theme adopting Best-In-Class Strategy. The investment objective of the Scheme is to provide investors with opportunities for long-term capital appreciation by investing in equity and equity related instruments of companies which have better performance based on ESG factors than their sector peers. The Scheme does not guarantee/indicate any returns. However, there can be no assurance that the investment objective of the Scheme will be realized.

One should consider investing in ESG funds for a combination of potential long-term financial returns, effective risk management, and the ability to align investments with personal ethical values.

• Companies with strong ESG practices are often better managed, which can lead to a competitive advantage and enhanced financial performance over the long term.
• These companies have shown greater resilience during periods of market volatility and economic crises and tend to be forward-looking.
• ESG analysis helps identify and avoid companies with poor practices that might face regulatory penalties, legal issues, or reputational damage, thereby reducing portfolio risk.
• Adhering to ESG principles often drives companies to improve operational efficiency, reduce waste, and innovate, which can result in cost savings and increased profitability.
• Strong ESG profile can lead to lower cost of capital, and access to wider pool of investors.

The Benchmark for the Scheme will be Nifty100 ESG index. The top 10 constituents of the benchmark are as follows:

Source: Nifty Indices, Data as on December 31, 2025.

Source: MFI Explorer, Data as of December 31, 2025. Returns are Compounded Annualized. Past performance may or may not be sustained in future and is not a guarantee of any future returns.

• About the Scheme
  Baroda BNP Paribas ESG Best-in-Class Strategy Fund is an open-ended equity scheme investing in equity and equity related securities of companies following Environmental, Social and Governance (ESG) theme adopting Best-In-Class Strategy. The Scheme will be investing in companies that perform better than sector peers on ESG (Environmental, Social, Governance) parameters.
• Investment Focus
  The Scheme will invest minimum 80% of its net assets in companies in India, that have better performance based on ESG factors than their sector peers. The Scheme will avoid investing in companies that are considered to adversely impact the society. Companies involved in alcohol, tobacco, gambling, and high adverse environmental and social impact will be excluded.^#
• Why Consider this Scheme?
  The Scheme seamlessly integrates ESG principles into the existing investment process, helping identify future‑ready companies. Firms with strong ESG practices are typically better equipped to withstand today’s volatile and complex business environment. The Scheme provides investors with an opportunity to invest in companies which focus on long term stability along with sustainability.
• Ideal Investment Horizon
  Investors should have a long-term holding period of ideally more than 3 years

^#For further details, please refer to the Scheme Information Document (SID) on our website www.barodabnpparibasmf.in

The Scheme will follow Best-in-class strategy and investments made by the Scheme will be in accordance to the SEBI Master Circular dated June 27, 2024 or any other such guidelines as recommended by SEBI from time to time. ^The Scheme may invest upto 50% of equity assets in equity derivatives instruments as permitted under the SEBI (Mutual Funds) Regulations, 1996 from time to time. The Scheme may use equity derivatives for such purposes as may be permitted under the SEBI (Mutual Funds) Regulations, 1996, including but not limited for the purpose of hedging and portfolio balancing, based on the opportunities available and subject to guidelines issued by SEBI from time to time. *Debt instruments may include securitised debt upto 20% of the net debt assets of the scheme. The Scheme retains the flexibility to invest across all the securities in the equity, debt, money markets instruments, units issued by InvITs and mutual fund units. For detailed asset allocation, please refer to SID on our website www.barodabnpparibasmf.in

• The Scheme will be invested in companies with strong Environmental, Social, and Governance policies
• The Scheme will follow the Best-in-Class Strategy, in which the aim will be to invest in companies and issuers that perform better than sector peers on ESG factors.
• Based on the ESG assessment, companies in each sector group will be ranked into deciles. The companies ranked from first to fifth decile, that is having ESG rating equal or above median, in its sector group would form the investible universe for the portfolio
• After applying the ESG filter, portfolio construction will consider factors such as financial strength of companies, management reputation, long-term growth prospects, and any other factors impacting a company’s future performance
• Companies involved in alcohol, tobacco, gambling, and high adverse environmental impact would be excluded from the investment universe of the Scheme.

This Scheme is suitable for:

• Investors looking for diversified equity exposure across sectors with an ESG theme
• Investors with a long-term investment horizon
• Investors who want to align their investments with ethical or sustainability beliefs

It would be preferable for an investor to stay invested in the fund for upwards of 3 years, to reap benefits from the growth in this theme.

*Please consult your financial advisor before investing. Please refer to the SID for further details of the investment strategy and asset allocation.