Bank of India Business Cycle Fund NFO: Bank of India Mutual Fund has introduced a New Fund Offer (NFO). Launched under the name of Bank of India Business Cycle Fund, this NFO is an open-ended equity scheme, which gives investors an opportunity to invest in sectors and companies that are likely to grow rapidly based on their business cycle. Subscription for this new fund offer (NFO) is open from 9 August 2024 to 23 August 2024.
Features of Bank of India Business Cycle Fund
Bank of India Business Cycle Fund aims to invest in various sectors and companies by analysing emerging market trends and growth themes. The fund will be managed under a “top-down” strategy, with fund managers focusing on sectors whose business cycle is expected to expand over the medium to long term. Alok Singh, Chief Investment Officer (CIO), Bank of India Investment Managers Pvt Ltd, said, “Our new scheme aims to invest in a focused set of growth themes using a top-down approach that are positively impacted by macro factors and mega-trends.” Mohit Bhatia, CEO, Bank of India Investment Managers Pvt Ltd, said, “This fund will try to invest in businesses and sectors that we think are in the expansion phase of their business cycle.”
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Benchmarks and Fund Allocations
The benchmark for Bank of India Business Cycle Fund will be the NIFTY 500 Total Return Index, i.e. the performance of this fund will be compared with the NIFTY 500 Total Return Index. This index tracks the performance of the top 500 companies of the Indian stock market.
The allocation of funds in the portfolio of Bank of India Business Cycle Fund will be as follows:
- 80 to 100% fund allocation in equity and equity-related instruments
- 0 to 20% fund allocation in debt and money market instruments.
- 0 to 10% fund allocation in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
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Who should invest in this scheme?
This fund is suitable for investors who are looking for long-term capital growth and wish to invest in equity and equity-related assets. It is specifically for those who are interested in shuffling their investments through dynamic allocation between sectors and stocks at different stages of the business cycle. Overall, if you are looking for a long-term investment option that takes advantage of changing business cycles, then you can consider Bank of India Business Cycle Fund.
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Invest with caution
Although Bank of India Business Cycle Fund provides an investment opportunity, the success of this fund will largely depend on the accurate identification of business cycles and sector trends, which can be a complex and challenging task. Therefore, ordinary investors should keep their risk profile in mind before investing in it. Also, see whether this fund matches your investment goals.
(Disclaimer: The purpose of this article is only to provide information, not to give investment advice. Market fluctuations have a direct impact on the returns of mutual funds. Therefore, consult your investment advisor before investing.)