Bank of India Mutual Fund has launched a New Fund Offer (NFO) – Bank of India Multi Cap Fund – for investors looking to diversify their portfolio across large, mid and small cap categories. In a statement, the AMC said that the Multi Cap Allocation Strategy includes a spread of minimum 25% of its total assets each in large, mid, and small cap companies.
“Bank of India Mutual Fund is very pleased to announce the launch of a NFO after almost 2 years. Given the positive and structural long term strengths of Indian markets and with nature of volatility that is inherent in growth markets like India, we feel that a Scheme that invests across categories of large, small and mid-cap companies may provide a good opportunity for investors looking for long term Wealth Creation,” said Mohit Bhatia, CEO, Bank of India Investment Managers Private Limited.
Alok Singh, CIO, Bank of India Investment Managers Private Limited further said, “Market volatility can be managed by diversification and a Multi Cap Fund by regulatory mandate invests a minimum 25% across each of large, mid and small cap companies thus offering diversification across market caps in its portfolios.”
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“While large cap compounders are likely to provide index oriented returns, mid cap companies & small cap exposures are likely to provide Alpha creation opportunities in a multi-cap portfolio. 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,” he added.
The NFO for the Scheme opens for subscription on February 10, 2023 and closes on February 24, 2023.
The investment objective of the scheme is to generate long term capital appreciation by investing in equity and equity-related securities across various market capitalisation. However, there can be no assurance that the investment objectives of the Scheme will be realized, the AMC said.
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Who may invest
The Scheme may be suitable for investors looking for single product solution for equity investment. The Scheme is ideal for investors who are looking to invest across market cap categories.
The Scheme will be managed by Nitin Gosar.
The minimum initial investment in the Scheme will be Rs. 5000 and Rs. 1 thereafter. The Scheme would be benchmarked against S&P BSE 500 TRI (first tier).
(Disclaimer: The above content is for information purposes only and based on a press release by Bank of India Mutual Fund. Mutual Fund investments are subject to market risks with no assurance or guarantee of return on investments. Please consult your financial advisor before making an investment decision)