Bank of India MF launches Business Cycle Fund: Should you invest?

The fund aims to invest dynamically across sectors and companies by utilising emerging market trends and growth themes to optimise returns

Bank of India Mutual Fund has launched the Bank of India Business Cycle Fund, an open-ended equity scheme designed to invest in sectors based on their business cycles. The new fund offer (NFO) provides investors with an opportunity to gain exposure to sectors and companies poised for growth.
 

“Our new scheme endeavours to majorly use a Top-Down approach to identify and invest across a focused set of growth themes impacted positively by macro factors and mega-trends,” said Alok Singh, CIO of Bank of India Investment Managers Private Limited.

 

“The fund aims to invest across a spectrum of businesses and sectors that we feel are likely to see an expansionary phase in their business cycle over the medium to long term,” said Mohit Bhatia, CEO of Bank of India Investment Managers Private Limited.

 

Key features of the fund include:

 

- Well researched themes

 

- Risk graded portfolio approach

 

- Dynamic top-down approach for portfolio construction

 

- Market cap & sector agnostic

 

Benchmark 

 

The performance of the Bank of India Business Cycle Fund will be benchmarked to the performance of the NIFTY 500 TRI.

 

Fund allocation

 

The fund will allocate 80-100 per cent in equity and equity-related instruments, 0-20 per cent in debt and money market instruments, and 0-10 per cent in units issued by REITs and InvITs.

 

Fund managers

 

Alok Singh will manage the fund.

 

Investment period

 

The NFO for the Bank of India Business Cycle Fund will be open from August 9, 2024, to August 23, 2024.

 

Who should invest

 

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.

 

However, experts advise that investors should consult their financial advisors before investing, as the fund’s performance will depend on the accurate identification of business cycles and sector trends.