NFO Alert: Bank of India Mutual Fund Launches Banking and Financial Services Fund

Bank of India Mutual Fund has announced the launch of the Bank of India Banking & Financial Services Fund, an open-ended equity scheme with a sector-specific mandate.  

The fund will be offered through a New Fund Offer (NFO) opening on January 8 and closing on January 22, 2026, as per the offer document. 

Investment Focus 

The scheme will invest primarily in equity and equity-related instruments of companies operating in banking and financial services.  

This includes banks, non-banking financial companies, insurance firms, fintech companies and capital market participants. The fund follows a focused sector strategy rather than a diversified equity approach. 

Strategy and Benchmark 

According to the fund house, the portfolio will be constructed using a mix of top-down and bottom-up stock selection. Investments may be spread across large-, mid- and small-cap companies within the sector.  

The scheme is benchmarked against the Nifty Financial Services TRI, which shows the performance of listed financial services companies, including dividend reinvestment. 

Fund Management 

The scheme will be managed by Nilesh Jethani of Bank of India Investment Managers Private Limited, which acts as the investment manager for Bank of India Mutual Fund.  

The fund house stated that portfolio decisions will be based on company fundamentals and sector conditions. 

Subscription Terms 

The minimum investment during the NFO period is ₹5,000, with additional investments allowed in multiples of ₹1.  

An exit load of 1% will be charged on redemptions or switches made within 60 days from the date of allotment. No exit load will apply after the 60-day period. 

Fund House Overview 

As of December 31, 2025, Bank of India Mutual Fund managed assets worth ₹13,656.55 crore across equity, debt, hybrid, liquid and ELSS schemes. The fund house reported more than 8.2 lakh investor folios at the end of December. 

Read More: ICICI Prudential Mutual Fund Declares IDCW for Medium-Term and All Seasons Bond Funds! 

Conclusion 

The Bank of India Banking & Financial Services Fund adds a sector-focused equity option to the fund house’s product lineup, offering exposure limited to banking and financial services, with risks linked to sector concentration. 

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.