Bank of India Mutual Fund Launches BOI Multi-Asset Allocation Fund

Feb 08, 2024

Bank of India Mutual Fund launches – Bank of India Multi-Asset Allocation Fund

It is an open ended scheme investing in Equity, Debt and Gold ETF.

Accordingly, investment objective of the scheme is to seek long term capital growth by predominantly investing in equity and equity related securities, debt & money market instruments and Gold ETF. However, there can be no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, Bank of India Multi-Asset Allocation Fund will hold an allocation of 35% to 40% in Equity & Equity related instruments, 45% to 55% in Debt and Money Market instrument, 10% to 15% in Gold ETF and 0% to 10% in Units issued by REITs and INVITs.  

[Read: How a Multi-Asset Fund Can Protect Your Portfolio at a Market High]

As per the Scheme Information Document, Bank of India Multi-Asset Allocation Fund aims to invest in equity and equity related instruments across market capitalization that the fund manager believes have sustainable business models, and potential for capital appreciation.

The Scheme will follow an actively managed approach allowing it the flexibility to pursue opportunities without having any bias in favour of sectoral allocations. The investment environment, valuation parameters and other investment criteria will determine the allocation and the investment style.

The fund manager will follow a top-down approach to shortlist stocks for portfolio construction in line with the process outlined below. Under the top-down process the fund manager would look at the global and Indian economy and the domestic policy environment and stock valuations. The final stock selection process would be a bottoms-up process wherein stocks from the shortlisted themes would be picked up based on valuations.

Bank of India Multi-Asset Allocation Fund’s performance will be benchmarked against 37.50% of Nifty 500 TRI + 50% of Nifty Composite Debt Index + 12.50% of Domestic Prices of Gold.

The scheme will be managed by Mr Alok Singh & Mr Mithraem Bharucha.

The NFO opens for subscription on February 07, 2024 and closes on February 21, 2024. The schemes will reopen for continuous sale and repurchase on March 01, 2024.

The minimum subscription amount is Rs 5,000/- and in multiples of Re.1/- thereof.

The scheme offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW).