Bank of India (BOI) Mutual Fund has launched its Banking & Financial Services Fund, an open-ended equity scheme focused on companies within the banking and financial services sector. The New Fund Offer (NFO) is now live, having opened on January 8, 2026, and will remain open until January 22, 2026.
The fund aims to achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of banking and financial services companies. It will be benchmarked against the Nifty Financial Services Total Return Index (TRI). The fund provides investors with an opportunity to invest directly in the backbone of the Indian economy, encompassing banks, NBFCs, insurance companies, and other financial institutions.
The minimum investment required during the NFO and on an ongoing basis is ₹5,000, with subsequent purchases allowed in multiples of ₹1. Investors can also opt for a Systematic Investment Plan (SIP) with a minimum investment of ₹1,000 per month for at least six months.
The fund will allocate 80% to 100% of its assets to equities and related instruments of banking and financial companies. Up to 20% of the assets may be invested in other sectors or in debt and money market instruments. The scheme retains the option to invest up to 10% in REITs and InvITs. Investments in overseas securities, credit default swaps, or securitized debt instruments are not permitted.
An exit load of 1% will be charged for redemptions or switch-outs within 60 days from the date of allotment. There will be no exit load for redemptions after 60 days. Redemption proceeds will be dispatched within three business days.
The fund offers both Direct and Regular Plans, with options for Growth and Income Distribution cum Capital Withdrawal (IDCW). Facilities such as SIP, Systematic Transfer Plan (STP), and Systematic Withdrawal Plan (SWP) are available.
Nilesh Jethani manages the Bank of India Banking & Financial Services Fund. He has over 9 years of experience in equity research and has previously worked with HDFC Securities, HDFC Bank, and ASK Investment Managers.
The fund is categorized as very high risk. Sectoral funds are better suited as tactical allocations and investors should approach it cautiously. The fund is restricted to a single sector, making it vulnerable to sector-wide downturns. Banking and financial services are closely linked to GDP growth, credit demand, and asset quality, meaning performance can deteriorate sharply during economic slowdowns. Changes in RBI regulations, government policies, or capital norms can also affect profitability.
Bank of India Investment Managers Pvt. Ltd. has 15 years of experience in fund management and has 21 mutual fund schemes with 8.16 lakhs+ investors and ₹13,859 Cr of assets under management as of November 30, 2025.
