BOI MF launches Bank of India multi asset allocation fund, should you invest?

Bank of India Mutual Fund has recently introduced the Bank of India Multi Asset Allocation Fund, an open-ended scheme designed to invest in equity, debt, and gold ETFs. This fund aims to achieve long-term capital growth by primarily investing in equity and equity-related securities, debt and money market instruments, and gold ETFs. While the scheme does not guarantee returns, it offers investors the opportunity for wealth creation over the medium to long term.

Investors can participate in this scheme with a minimum investment of ₹1000 per plan/option, with no upper limit for investment. The asset allocation under normal circumstances will be as follows:

Equity and equity-related instruments: 35%-40%

Debt securities and money market instruments: 45%-55%

Gold ETF: 10%-15%

Units issued by REITs and InvITs: 0%-10%

Several other asset management companies have launched similar multi-asset funds in the market, providing investors with opportunities to benefit from the total returns of various securities. The performance of the Bank of India Multi Asset Allocation Fund will be benchmarked against a composite index comprising 37.50% of Nifty 500 TRI, 50% of NIFTY Composite Debt Index, and 12.50% of Domestic Prices of Gold.

Regarding entry and exit loads, there is no entry load for investors, while an exit load of 1.00% is applicable for exits within 12 months from the date of allotment. After 12 months, no exit load is charged. The scheme will be managed by Alok Singh and Mithraem Bharucha.

Disclaimer: It's important to note that the scheme involves "Very High Risk," and investors should be aware that their principal is subject to such risk. Consulting with financial advisors is recommended for investors who are unsure about the suitability of this product for their investment goals.