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A better way to get debt exposure into client portfoliosAlok Singh, Bank of India MF, Mumbai

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BoI MF’s new Multi Asset Allocation Fund comes with a differentiated asset allocation, with 45-55% earmarked for debt, thus leaving 35-40% for equity and the balance between gold and REITs/InvITs.

Though this fund will not have equity taxation as percurrent rules, Alok says it doesn’t make much of a difference for investors who hold for more than 3 years as inflation adjusted effective tax rate for returns in the low double digits comes in on par with equity taxation.

The idea is to give investors a better alternative to debt funds for their debt allocation – same taxation but with a better chance for low double digit returns with lower volatility compared to other asset allocation products.

Debt allocation will have a 2-3 yr duration. It will avoid extreme duration calls in keeping with the overall conservative stance of the product. This will also help the portfolio deliver steady returns through rate cut and rate hike cycles.

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Comments Posted
Mohsin Bijepuri ARN NO :33913 Chennai , 05 Feb 2024

Bank of India AMC manages hybrid & debt products well is our experience. The fund’s objective is to deliver stability & cushion & is not an alpha generator.

Shripad Mahadeo Nazarkar ARN NO :!63564 Wadgaon Bk Pune, 05 Feb 2024

I am Boi employee , I have proud of Boi, Boi always Made customer Benefit same fund will prove it

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