The NFO or new fund offer of Bank of India Multi Asset Allocation Fund opens today for subscription. For the unversed, NFO is similar to an IPO, wherein investors can invest in the investment option via the new fund offer route. The NFO for the scheme shall run until February 21, 2024.

The fund’s asset allocation strategy includes deploying 35-40 per cent corpus in equity and equity-related securities, 45-55 per cent towards debt and money market instruments, 10-15 per cent in gold ETF, and the remaining balance in REITs and InvITs.

Here are the finer details about the fund:

Bank of India Multi Asset Allocation Fund Objectives:

The scheme’s investment objective is to seek long-term capital growth by predominantly investing in equity and equity-related securities, debt and money market instruments and Gold ETF. 

Suitability:

“The new fund will be suitable for investors who are seeking low volatility in their portfolio and exposure to multiple asset classes with better returns. Also, investors may consider this fund as part of their allotment of emergency or contingency plans, due to the diverse nature of the fund,” the release by the fund house notes.

Bank of India Multi Asset Allocation Fund Minimum application amount:

Rs 5000 and in multiples of Rs 1 thereafter, and, minimum additional investment can be made for Rs 1000 and in multiples of Rs 1 thereafter.

Bank of India Multi Asset Allocation Fund Plan and options:

The fund offering will be available under the regular plan and direct plans with the growth and IDCW options.

Exit load:

The exit load for the fund is 0.01 per cent, which means one has to pay 0.01 per cent of the sell value if they sell the mutual fund units before 365 days.

Fund Managers:

Alok Singh and Mithraem Bharucha are the fund managers for the newly launched fund.