Upcoming NFO: Bank of India Mutual Fund Files Draft for Aggressive Hybrid Active FOF

Bank of India Mutual Fund has filed the draft Scheme Information Document for the Bank of India Aggressive Hybrid Active FOF.  

The document, dated September 24, 2026, describes it as an open-ended fund of funds scheme investing in active equity and debt mutual fund schemes.  

Proposed Asset Allocation 

The scheme will invest 65% to 80% of its assets in underlying active equity-oriented schemes and 20% to 35% in active debt-oriented schemes. A further 0% to 5% can be invested in debt and money market instruments. 

Within the equity allocation, 65% to 70% of the assets will be allocated to an underlying small-cap scheme, while 10% to 15% will be allocated to a mid-cap scheme. The debt component will primarily comprise money market and other debt schemes.  

Investment Strategy 

The draft document states that the fund will use an active strategy and adjust its equity and debt allocation according to market conditions. Factors listed for determining the allocation include market valuation, volatility, earnings, and liquidity. 

The scheme can invest in small-cap and mid-cap schemes of Bank of India Mutual Fund or other domestic mutual funds with similar objectives, strategies and asset allocations.  

Benchmark and Investment Terms 

The proposed benchmark comprises the NIFTY Mid Small Cap 400 Total Return Index with a 70% weight and the CRISIL Short Term Bond Index with a 30% weight. The benchmark is intended to reflect the scheme's equity and debt allocation.  

The NFO price is proposed at ₹10 per unit, with a minimum investment of ₹5,000. For redemptions within three months, there is no exit load on 10% of investments, while the remaining amount attracts a 1% exit load.  

Redemptions after three months carry no exit load.  

Read More: Upcoming NFO: Mirae Asset Mutual Fund Files Draft for Mirae Asset Floating Interest Rates Fund! 

Conclusion 

The proposed fund will combine exposure to small-cap and mid-cap equity schemes with debt-oriented schemes. Its stated investment objective is to generate long-term capital appreciation through actively managed equity and debt funds. 

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.