A New Opportunity Based on Value Investing..! Bank of India Value Fund

Sivakasi Manikandan, MD, AISMONEY

 

Bank of India Mutual Fund has launched a new open-ended equity mutual fund called Bank of India Value Fund. Investors can invest in this new fund until September 11, 2026. The minimum investment amount is ₹5,000.

 

The scheme follows a value investing strategy. Its primary objective is to invest in companies that are considered undervalued by the market but have strong underlying fundamentals, with the aim of generating long-term capital appreciation for investors.

 

Key Details of the Scheme

Particulars	Details
Scheme Name	Bank of India Value Fund
Fund House	Bank of India Mutual Fund
Scheme Type	Open-ended Equity Mutual Fund
Investment Approach	Value Investing
New Fund Offer Period	August 28 – September 11, 2026
Minimum Investment	₹5,000
Investment Objective	Long-term capital appreciation
Benchmark	Nifty 500 Total Return Index
Risk Level	Very High

What is Value Investing?

 

Value investing is an investment approach in which investors buy the shares of companies that are believed to be trading at prices below their intrinsic or fair value.

A company may have healthy revenues, profits, assets, manageable debt and good long-term growth prospects, but its share price may still remain low due to various market-related factors. Identifying and investing in such companies after analysing their fundamentals is the basic principle behind value investing.

 

The underlying expectation is that when the company's business performance improves or when the market recognises its true value, the share price may rise over the long term.

 

A Simple Example

Let us assume that the fair value of a company's share is estimated at ₹150. However, the share is currently available in the market at ₹100.

 

If the company's business continues to perform well, its share price may rise in the future as the market begins to recognise its underlying value.

However, this does not mean that investors are guaranteed to earn returns. The company's performance may not improve as expected, and it may take a long time for the market to recognise its value. Therefore, patience is an important factor in value investing.

 

How Will the Scheme Invest?

 

A major portion of the scheme's investments will be made in equities and equity-related investment instruments. The fund manager will analyse companies across different sectors and select stocks based on their valuation, fundamentals and growth prospects.

Therefore, the performance of the scheme will be directly linked to the movement of the equity market. The value of the investment may increase when the market performs well. Similarly, the value of the fund may decline during periods of market weakness.

 

Importance of Long-Term Investment

Value funds are generally not designed with a short-term profit objective. The companies selected by the fund manager may require time to realise their underlying value in the market.

Therefore, investors considering this scheme should have a long-term investment horizon and should be prepared to remain invested through periods of market volatility.

Things to Consider Because This is a New Scheme

Since this is a newly launched scheme, it does not have a long-term performance track record. Therefore, investors cannot assess its future performance based on past returns.

In such a situation, investors should consider factors such as the scheme's investment strategy, the experience and investment approach of the fund manager, the nature of companies in which the scheme may invest, the expenses associated with the scheme and their own ability to withstand market risk.

 

Who May Consider This Fund?

Investors who want to invest in the equity market for the long term, believe in the value investing approach and are comfortable with market fluctuations may consider this scheme.

Bank of India Value Fund is a new equity mutual fund that aims to identify fundamentally sound companies that are considered undervalued by the market and seek to create long-term investment value through a value-oriented investment approach.

 

However, investors should not invest merely because it is a new fund. They should consider whether the investment strategy matches their financial goals, investment horizon and risk tolerance before making an investment decision.

 

For More details and investment

Sivakasi Manikandan, MD, AISMONEY

 

Sivakasi Manikandan, MBA (F&M), [MBA, I & FP], 

FChFP, CIS, AMFI, CII (London)

Managing Director – AISMONEY

 

AMFI Registered Mutual Fund Distributor - ARN-33652

 

No. 21, MBT Road, (Opp) Indian Bank, Walajapet  - 632 513
Ranipet Dt. Tamil Nadu, India.

+ 91 98405 77675
+ 91 96777 66393  (Office)
 support@aismoney.com

http://www.aismoney.com/

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes.