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NFO Alert: Bank of India Mutual Fund launches New Business Cycle Fund to capitalise on economic trends
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3 min read | Updated on August 09, 2024, 19:17 IST
SUMMARY
Bank of India Mutual Fund introduces the Business Cycle Fund, focusing on long-term capital appreciation by dynamically investing in equities across various sectors based on economic business cycles. The NFO is open from August 9 to August 23, 2024, with a minimum investment of ₹5,000.
NFO Alert: Bank of India Mutual Fund launches New Business Cycle Fund to capitalise on economic trends
Bank of India Business Cycle Fund is a new open-ended equity fund offered by Bank of India Mutual Fund. Aiming to generate long-term capital appreciation, the fund dynamically invests in equities and equity-related securities across various sectors and stocks based on different economic business cycle stages. The New Fund Offer (NFO) opened on August 9, 2024, and closes on August 23, 2024. With a minimum investment of ₹5,000, this sectoral/thematic fund seeks to capitalise on business cycle trends.
Bank of India Business Cycle Fund
The Investment objective of the Bank of India Business Cycle Fund is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy. However, there is no assurance that the investment objective of the Scheme will be achieved.
Risk-o-meter:
Funds Allocation
| Types of Instruments | Minimum Allocation (% of Net Assets) | Maximum Allocation (% of Net Assets) | Risk Profile |
|---|---|---|---|
| Equity selected on the basis of business cycle | 80 | 100 | Very High |
| Debt and Money Market | 0 | 20 | Low to Medium |
| ReITS and InVITS | 0 | 10 | Very High |
Who should invest in this fund?
This NFO of the Bank of India Business Cycle Fund is suitable for investors who are seeking long-term capital appreciation and investment in equity and equity-related instruments with a focus on navigating business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy.
Benchmark
The performance of the Bank of India Business Cycle Fund will be benchmarked to the performance of the NIFTY 500 TRI.
Peer Fund Schemes
| Scheme Name | AUM (Crore) | Expense Ratio (%) | 1 Year Returns (%) | Since Launch Return (%) |
|---|---|---|---|---|
| HSBC Business Cycles Fund | 924.97 | 2.35 | 45.13 | 15.13 |
| ICICI Prudential Business Cycle Fund | 10893.02 | 1.73 | 42.04 | 26 |
| Tata Business Cycle Fund | 2572.99 | 1.92 | 45.05 | 24.83 |
| Kotak Business Cycle Fund | 2620.03 | 1.93 | 34.41 | 24.51 |
| Baroda BNP Paribas Business Cycle Fund | 568.27 | 2.43 | 41.43 | 17.38 |
| ABSL Business Cycle Fund | 1817.47 | 2.09 | 31.94 | 15.7 |
| Axis Business Cycles Fund | 2825.23 | 1.95 | 36.64 | 37.96 |
| HDFC Business Cycle Fund | 3071.5 | 1.95 | 28.38 | 23.29 |
| Union Business Cycle | 485.0677 | 2.42 | - | 13.23 |
Who Manages the Scheme?
Alok Singh
Around 21 years of Experience including 16 years in Mutual Fund industries. He has been associated with Bank of India Investment Managers Private Limited Since April 2012.
Conclusion
The Bank of India Business Cycle Fund offers an opportunity to invest in equities aligned with economic cycles. With a high-risk profile, it’s suited for investors seeking long-term growth through strategic sectoral allocation.
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