Bank of India Business Cycle Fund NFO to Close on August 23

On August 09, 2024, Bank of India Mutual Fund launched its new product, the Bank of India Business Cycle Fund. The New Fund Offer (NFO) opened on August 09, 2024, and will close on August 23, 2024. The Bank of India Business Cycle Fund scheme is an open-ended equity scheme investing in a sector based on its business cycle.

Investment Objective

The scheme’s Investment objective 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 the economy’s business cycles. However, there is no assurance that the scheme’s investment objective will be achieved.

What are the Investment Strategies?

The Scheme invests primarily in equity and equity-related securities with the goal of producing capital appreciation. Its main goal is to manage business cycles by adjusting the allocation of stocks and sectors dynamically at different points in the business cycle of the economy. Active allocation across sectors, equities, and styles according to the business cycle stages of the economy would be part of the fund management.

The fund manager will consider macro and microeconomic factors and combine them with a proprietary internal model that uses technical and fundamental stock analysis to create a portfolio that captures the industries, stocks, and styles that best meet the scheme’s investment goal.

The scheme’s stock selection would emphasise finding businesses with strong corporate management and promising future growth. The fund managers will give preference to businesses that provide the best value in terms of their individual long-term growth potential, returns on capital, and management calibre.

Who Should Invest in this Scheme?

The scheme is suitable for investors with a high-risk appetite. The investors who are seeking an equity-oriented portfolio that aims to invest dynamically across businesses and sectors that are expected to be impacted positively by medium to long-term growth themes

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.