NFO Alert: Bank of India Mutual Fund announces launch of value fund

Bank of India Mutual Fund has announced the launch of Bank of India Value Fund, an open-ended equity scheme following a value investment strategy. The NFO opened for subscription on August 28, 2026, and will close on September 11, 2026.

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Bank of India Value Fund seeks to generate long-term capital appreciation by predominantly investing in equity and equity-related instruments through a value investment strategy. The fund will invest across market capitalisations while remaining sector agnostic, with a focus on identifying businesses with intrinsic value and unrecognised potential for growth. The investment approach follows bottom-up stock selection complemented by macro overlays.

“Value investing has evolved beyond simply identifying stocks that appear inexpensive. Our approach through Bank of India Value Fund is focused on identifying businesses where a measurable change in fundamentals can lead to value creation. By investing across market capitalisations and remaining sector agnostic, the fund seeks to identify opportunities where the Rate of Change can translate into improving earnings and returns over the long term,” said Mohit Bhatia, CEO – Bank of India Investment Managers Private Limited (BOIIM).


The fund's investment approach is built around Rate of Change (ROCh), which focuses on identifying measurable acceleration in demand, orders, output or pricing and assessing how this acceleration translates into revenue, margins and returns. The investment thesis comprises four stages — Stimulus, Rate of Change, P&L Transmission and ROCE Inflexion. The approach seeks to identify where value is being created as business fundamentals improve.

“Our investment philosophy is centred on the belief that cheapness alone does not constitute value. We look for the Rate of Change — the measurable acceleration in a company's demand, orders, output or pricing — and assess how that change flows through the P&L and ultimately reflects in ROCE. The objective is to identify the inflexion point early, test the investment thesis through defined triggers and remain disciplined as the opportunity evolves,” said Alok Singh, CIO – Bank of India Investment Managers Private Limited (BOIIM).

The fund will predominantly invest in companies showcasing ROCh and follow a five-filter approach to portfolio allocation. The process involves identifying opportunities, testing the investment thesis against pre-set triggers, sizing positions once confirmation arrives, harvesting positions as the rate of change decays and recycling the released weight into the next opportunity.

The scheme will invest 80%–100% of its total assets in equity and equity-related instruments of companies following a value investment strategy.

The fund is benchmarked against the Nifty 500 TRI and will be managed by Nav Bhardwaj. The minimum investment amount under the scheme is Rs 5,000, with additional investments permitted in multiples of Re 1 thereafter. The scheme will be available under regular plan and direct plan, with growth and IDCW options.

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The scheme is suitable for investors seeking long-term capital appreciation by investing predominantly in equity and equity-related instruments through a value investment strategy, with an investment horizon of five years or more.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

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