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Bank of India Mutual Fund has launched Bank of India Multi Asset Allocation Fund that will invest in equity, debt, gold and REITs and InvITs.
The scheme will invest less than 65% in equity and equity related instruments that makes the scheme eligible for indexation benefit.
In a press release, Mohit Bhatia, CEO, Bank of India Mutual Fund said, “The Multi Asset Allocation Fund is addition to hybrid bouquet for the benefit of our existing and potential investors, who are looking at a portfolio mix that predominantly focuses on stability through majority debt allocation while growth & inflation hedge are achieved vide secondary allocations in equity & gold. Further investors also have an added benefit of indexation on long term capital gains (after a suitable holding period of over 3 years as per current tax regulations).”
Alok Singh, CIO, Bank of India MF added that the fund will have exposure to apart from equity,debt & money market in 45%-55% range, gold exposure through ETF will be in the 10%-15% range. The fund also can invest up to 10% in listed REITs and INVITs. The low correlation between debt and equity allows portfolio to balance the volatility associated with the individual asset classes. The exposure to gold further helps in managing the portfolio volatility, he added.
