Bank of India Mutual Fund (BOI MF) is a wholly owned subsidiary of Bank of India (BOI), a prominent public sector bank. Established in 2008, BOI MF has consistently demonstrated its reliability and commitment to investors over the past 14 years. In this article, we will cover the top benefits of investing in mutual funds of BOI.
1. Professional Management
Bank of India has experienced fund managers. Their expertise allows them to analyze market trends, financial reports, and fiscal indicators to make informed choices. Fund managers aim to balance risk and return. Their process involves constant monitoring and adjusting the portfolio in response to market changes.
2. Diversification
With Bank of India mutual fund schemes, you can enjoy diversification benefits. You can invest in equity, gold, and debt assets. This diversification benefits by spreading risk to offer more stable returns over time.
For example, their Equity-To-Gold-ETF scheme invests with a minimum allocation of at least 10% each in equity, debt, and gold, using a combination of top-down and bottom-up approaches for portfolio building.
3. Tax Advantages
If you want to save on tax, invest in the BOI ELSS tax saver scheme. Your investment qualifies for a section 80C tax deduction. However, this ELSS comes with a three-year lock-in period. That means you are not allowed to withdraw your investment before lock-in.
Some of the key holdings in this scheme are:
- Bank of Baroda
- Canara Bank
- Clearing Corporation of India Ltd
- NTPC Limited
- Sun Pharmaceutical Industries Limited
Over the last year, this scheme has outperformed its benchmark (40.2%) by giving 54.5% returns.
4. High Liquidity
Bank of India also has schemes that do not have a lock-in period, and you can withdraw your funds anytime you wish without any hassle.
For example, if you invest in BOI Liquid Funds, you have the option to exit the fund after one day of subscription. However, such an exit is subject to 0.007% of the loan on the redemption proceeds.
The key holdings in this fund include:
- HDFC Bank Limited
- Government of India
- Bank of Baroda
- Axis Bank Limited
- ICICI Bank Limited
- Kotak Mahindra Bank Limited
- Axis Bank Limited
5. Easy Investment
You can invest in MF with BOI anytime, anywhere, using your smartphone. This convenience helps you keep control of your investment and align with the market trend. Here are the steps:
- Visit the official Bank of India Mutual Fund website or a trusted investment platform like Dhan
- Create an investment account by providing details and completing the KYC (Know Your Customer) process
- Browse through the list of available funds. Choose a plan that aligns with your growth, income, or tax savings objectives
- Decide on the amount you wish to invest. You can make a one-time investment or start a SIP to make regular contributions
- Provide your bank account details for transactions. Ensure that the account is active and has sufficient funds for the investment
- Make the payment for your chosen investment amount
Conclusion
Investing in the Bank of India mutual funds offers several benefits. With professional management, expert fund managers analyze market trends and diversify holdings to balance risk and return. BOI mutual fund also offers the convenience of easy investment via smartphone, ensuring control and alignment with market trends.
