The purpose of developing a long-term capital appreciation product at the Bank of India is to provide a vehicle for investing primarily in stocks of companies operating within the BFSI (banking, financial services and insurance) Industry. The Bank of India has created a new Equity Fund called the Bank of India Banking and Financial Services Fund, which will primarily invest in stocks of companies operating within the BFSI Sector, and provides investors with diversification across multiple companies within this sector.
Each of the above objectives will be supported by increased economic growth in India due to increased lending, increased access to financial services via technology (such as ATMs), improved disposable income, and greater formalization of the economic environment.
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Over the past two decades, the Nifty Financial Services TRI Index has delivered returns of around 28 times, significantly outperforming the broader market indices and indicating the long-term wealth creation potential of the sector.
The Bank of India Banking and Financial Services Fund is designed to enable investors to participate in this multi-decade growth by investing in banks, NBFCs, Fintech, insurance and capital markets businesses, which are considered the backbone of India’s economic transformation.
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The benchmark of this fund is Nifty Financial Services TRI and it will be managed by Nilesh Jethani, Fund Manager, Bank of India Investment Managers Private Limited.
The NFO will be available from 8th January 2026 to 22nd January 2026.
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Key Features of the Fund-
• Investment opportunity in a fast-growing sector associated with GDP growth, digitization and rising income
• Invests primarily in banking and financial services companies
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• Investment strategy across market-cap across leading, stable growth companies and innovators
• A three-dimensional strategy that includes innovators, stable growth companies and high growth businesses.
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• Research-based top-down and bottom-up stock selection
• Suitable for long-term investors looking for investment opportunities in the BFSI sector
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The minimum investment amount under this scheme is Rs. 5,000, and additional investments can be made in multiples of Rs. 500 thereafter. A 1% exit load will be applicable for redemption or switching within 60 days from the date of allotment, but no exit load will be applicable thereafter.
Speaking at the launch event, Mohit Bhatia, CEO, Bank of India Investment Managers Private Limited (BOIIM), said, “We are delighted to launch Bank of India Banking and Financial Services Fund at a time when India’s BFSI (Banking, Financial Services and Insurance) sector is evolving rapidly, driven by structural reforms and digitization. The sector has been demonstrating consistent growth, strong governance and high capital efficiency. The fund provides investors with a disciplined way to participate in India’s growing financial depth and a wide range of formal lending, insurance and wealth management solutions across the country.”