Bank of India Mutual Fund Files Draft for New Mid-Cap Equity Scheme

Bank of India Mutual Fund has filed a draft Scheme Information Document (SID) for a new offering, Bank of India Mid Cap Fund. This is an open-ended equity scheme that will invest primarily in mid-cap stocks. The fund falls under the 'Mid Cap Fund' category as defined by SEBI.

Objective and Structure

The fund's objective is to provide long-term capital appreciation by investing mainly in equity and equity-related instruments of mid-cap companies. However, the scheme does not guarantee returns. As per SEBI guidelines, mid-cap companies are defined as those ranked from 101st to 250th in terms of market capitalisation.

Asset Allocation Pattern

The indicative allocation under normal market conditions is as follows:

The scheme may also invest up to 50% in derivatives for hedging or other permitted purposes.

Subscription Details

• NFO Price: ₹10 per unit
• Minimum Investment: ₹5,000 and in multiples of ₹1 thereafter
• Plans: Regular and Direct
• Options: Growth and IDCW (Payout/Reinvestment)
• Exit Load: 1% if units are redeemed within 60 days; no exit load after that

Benchmark and NAV Disclosure

The performance will be benchmarked against the Nifty Midcap 150 Total Return Index (TRI). NAVs will be published by 11:00 p.m. on all business days on the fund's website and AMFI’s portal.

Additional Information

Redemption proceeds will be dispatched within three business days. The scheme allows investments via SIP, STP, SWP, and other standard facilities. Units will not be listed on stock exchanges.

Conclusion

The draft has been filed with SEBI, and the scheme will open for subscription after regulatory clearance and final notification of launch dates.

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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 in the securities market are subject to market risks, read all the related documents carefully before investing.