New NFO: Bank of India Mutual Fund launches Banking and Financial Services Fund; check key details

The scheme aims to benefit from long-term growth opportunities in India’s financial sector, which includes banks, NFBCs, insurance companies, housing finance firms and other players in the industry.

“We are excited to introduce the Bank of India Banking & Financial Services Fund at a time when India’s BFSI landscape is evolving rapidly, driven by structural reforms and digitisation. The sector continues to demonstrate consistent growth, strong governance, and high capital efficiency. This fund offers investors a disciplined route to participate in India’s financial deepening and the expanding reach of formal credit, insurance, and wealth solutions across the country,” said Bank of India Investment Managers Private Limited (BOIIM) CEO Mohit Bhatia, speaking on the launch.

Bank of India Banking & Financial Services Fund: Important details

Basic fund details

• Fund name: Bank of India Banking & Financial Services Fund
• NFO start date: January 8
• NFO close date: January 22
• Fund manager: Nilesh Jethani
• Benchmark: NIFTY Financial Services Total Return Index (TRI)
• Minimum investment amount: ₹5,000 and in multiples of ₹1 thereafter
• Plans available: Direct Plan and Regular Plan
• Options: Growth and Income Distribution cum Capital Withdrawal (IDCW) (Reinvestment of IDCW & payout of IDCW option)

Investment strategy

The fund uses a top-down and bottom-up stock selection approach to select companies with sound management, healthy financials and sustainable business models. The portfolio will primarily consist of banking and financial services stocks to maintain stability and growth.

Benchmark

The benchmark of the scheme is NIFTY Financial Services TRI, which tracks the performance of financial services companies in India.

Exit load

An exit load of 1% will be applicable if units are redeemed or switched out within 60 days from allotment. After 60 days, no exit load would be applicable.

Who should invest in this scheme?

This fund is suitable for investors seeking long-term capital appreciation through investment in equity and equity-related securities of companies engaged in banking and financial services activities. As per the fund document, experienced investors who have a high-risk appetite and have an investment horizon of 5 years and above can consider investing in this fund.