Bank of India Mutual Fund Files Draft for Banking & Financial Services Fund With SEBI

Bank of India Mutual Fund has filed draft documents with SEBI for an open-ended equity scheme named Bank of India Banking & Financial Services Fund. The scheme aims to invest mainly in equity and equity-related instruments of companies involved in banking and financial services. 

It seeks long-term capital appreciation, though returns are not guaranteed. The scheme will be benchmarked against the Nifty Financial Services Total Return Index (TRI).

Investment Pattern

The fund will allocate 80% to 100% of its assets in equities and related instruments of banking and financial companies. Up to 20% may be invested in other sectors or in debt and money market instruments. 

The scheme may also invest in REITs and InvITs up to 10%. Investments in overseas securities, credit default swaps, or securitised debt instruments are not permitted.

Offer Details

Units will be offered at ₹10 per unit during the New Fund Offer (NFO) period. The minimum investment during the NFO and on an ongoing basis will be ₹5,000, with additional purchases in multiples of ₹1. 

The NFO will remain open for at least 3 working days and not more than 15. The scheme will reopen for continuous sale and repurchase after the NFO closes.

Transaction and Load Structure

The scheme will not have an entry load. An exit load of 1% will apply for redemptions or switch-outs within 60 days from the date of allotment. Redemptions after 60 days will have no exit load. Redemption proceeds will be dispatched within three business days.

The fund will offer Direct and Regular Plans, with options for Growth and Income Distribution cum Capital Withdrawal (IDCW). Facilities such as SIP, STP, and SWP will be available. The minimum SIP amount is ₹1,000 per month for at least six months.

The scheme will be managed by Mr Nilesh Jethani, Assistant Fund Manager – Equity, with over 9 years of experience in equity research. 

Read More: Tata Mutual Fund Filed Draft For BSE Multicap Consumption 50:30:20 Index Fund With SEBI!

Conclusion 

The Bank of India Banking & Financial Services Fund awaits SEBI approval. Once cleared, the fund will proceed with its New Fund Offer and subsequent operations, which seek long-term capital appreciation, though returns are not guaranteed

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.