To meet the demand of investors who are looking for a low risk and diversified option of investment, Bank of India Mutual Fund launched a New Fund Offer(NFO) named Bank of India Multi Cap Fund. The NFO will enable the investors to choose an equity scheme which will invest across large cap, mid cap, small cap stocks.
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The new investment scheme will help the investors in reducing their risk by diversifying their portfolio in different market cap categories. the Multi Cap Allocation Strategy includes the spread of minimum 25% of its total assets each in large, mid, and small cap companies.
The NFO for the scheme opens for subscription on February 10 and closes on February 24. The lower limit of initial investment in the scheme will be ₹5,000 and it would be benchmarked against S&P BSE 500 TRI.
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With an aim to generate long term capital appreciation by investing in equity and equity-related securities across various market capitalisation, the scheme is a suitable option for those looking for a diversified investment option. The Scheme will be managed by Mr. Nitin Gosar, Fund Manager.
“Bank of India Mutual Fund is very pleased to announce the launch of a NFO after almost 2 years. We have always endeavoured to provide optimal Mutual Fund solutions keeping in view the varying needs of our existing as well as potential Mutual Fund investors in India,” said Mohit Bhatia, CEO, Bank of India Investment Managers Private Limited.
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He also added that given the positive and structural long term strengths of Indian markets, the company aims to bring a scheme that focuses diversifying its assets by investing across categories of large, small and mid-cap companies may provide a good opportunity for investors looking for long term Wealth Creation.
Alok Singh, CIO, Bank of India Investment Managers Private Limited further added that the market volatility can be managed by diversifying funds. A Multi Cap Fund by regulatory mandate adds minimum of one fourth of the total amount in every category of the fund.
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“The Scheme will also endeavour to manage 25% of the portfolio in a dynamic rules based approach to allocate across market capitalisation based on medium term Trends & Valuation Metrics. Bank of India Multi Cap Fund would be well suited for investors looking at exposure to growth oriented Equity Funds with a minimum 3-5 years Investment Horizon,” said Alok Singh.
Key highlights of Bank of India Multi Cap Fund
-The scheme investment minimum 25% in large, mid & small cap each.
– It provides leverage on structural and cyclical opportunities
-Investors get the ability to navigate different market cycles/conditions
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– Scheme opts for the blend of top-down and bottom up approach
– the scheme gives relatively better risk adjusted returns compared to single cap biased funds.
