Bank of India Multicap Fund: The power of diversification in your Portfolio

Current Market Scenario

The market rebounded from its 52-week low after the ceasefire was agreed upon between the United States and Iran. The Strait of Hormuz remains shut, and crude oil prices shot up again. The market is range-bound but continues to be volatile. Global markets may bounce back if a lasting ceasefire can be agreed upon between United States and Iran. The long term outlook of Indian equities remain. Stable macros, strong growth in consumption demand driven by per capita income growth, rising affluence, demographic advantages and shifting consumption patterns. In the long term, large, mid and small caps Indian companies are likely to benefit from the structural reforms made by the Government e.g. e.g. Atmanirbhar Bharat, Make in India, Digital India, Atal Innovation Mission, Defence sector reforms, labour law reforms etc.

Valuations have moderated across all market cap segments

The sharp correction has brought down valuations from their previous peaks across all market cap segments. (see the graphic below). As such, investors can find attractive investment opportunities across large-cap, mid-cap, and small-cap stocks in a Multicap strategy. As per SEBI guidelines, multicap funds must allocate a minimum of 25% each to large-cap, mid-cap, and small-cap stocks. This diversification helps spread risk and navigate periods of market volatility more effectively. In this article we will review Bank of India Multicap Fund.

Source: NSE, as on 31^st March 2026

About Bank of India Multicap Fund

The Bank of India Multicap Fund has completed 3+ years since its launch in March 2023. Currently, it has an AUM of nearly Rs 938 Crores, managed by fund manager Mr. Nitin Gosar, who has more than 16 years of experience in Equity Research and Fund Management. The fund has delivered a CAGR of 22.6% since its launch.

Outperformance compared to the benchmark

The chart below shows the performance of the fund compared to the Nifty 500Multicap 50:25:25 TRI. You can see that the fund has outperformed its benchmark in each of the years since its launch.

Source: Advisorkhoj research as of 29^th April 2026

The chart below shows the growth of Rs 10,000 investment in Bank of India Multicap Fund versus the benchmark index since the inception of the scheme. You can see that the fund has outperformed the benchmark and created alphas for investors

Source: NSE, Advisorkhoj Research, as of 26^th February 2026

Outperformance compared to the Category

The chart below represents the performance of the fund compared to the average performance of all the funds in the Multicap category, over 2-year periods in different time periods in the last three years. You can see the Bank of India Multicap fund has consistently outperformed the category average by a wide margin.

Source: Advisorkhoj research as on 29^th April 2026

Superior risk-return trade-off versus peers

In comparison to the category average, the Bank of India Multicap Fund has significantly higher percentage instances of 12%+ CAGR returns (see the chart below). The fund offered a better risk / return trade-off when compared to the peer average.

Source: Advisorkhoj research as on 29^th April 2026

Limited downside risks for investors

Bank of India Multicap Fund experienced smaller drawdowns compared to its benchmark index in the last year (see the chart below). It was able to limit downside risks for investors. The maximum drawdown of the scheme was -12%, versus -15% maximum drawdown of the benchmark index.

Source: Advisorkhoj research as on 29^th April 2026

Bank of India Multicap Fund - Strong consistency performance

The graphic below shows the quartile rankings of the quarterly returns of the Bank of India Multicap Fund in the last 3 years. The fund was in the top two quartiles in 7 out of 12 quarters.

Source: Advisorkhoj Research, as of 29^th April 2025

Market capture ratios indicate strong risk adjusted returns

The market has been volatile in the past year. We saw periods of correction followed by periods of recovery. Up Market Capture Ratio tells us the percentage of the market's upside that was captured by the fund. The Up Market Capture Ratio of Bank of India Multicap Fund was 105% which implies that if the benchmark index went up by 1% in a month, then the scheme's Net Asset Value (NAV) went up by 1.05%. The Down-Market Capture Ratio tells us the percentage of the market's downside that was arrested by the fund. The Down-Market Capture Ratio of the fund was only 90% which implies that if the benchmark index went down by 1% in a month, then the scheme's Net Asset Value (NAV) went down by 0.90%. The market capture ratios of Bank of India Multicap Fund are a clear indication of the potential of the fund to give superior risk-adjusted returns.

Portfolio Construction of Bank of India Multicap Fund

The Bank of India Multicap Fund aims for long-term capital appreciation by allocating 95-100% of assets to domestic equity schemes spanning varied market caps, with minimal debt or cash for liquidity. The fund manager employs a mix of bottom-up and top-down approaches for stock selection, aiming for long-term growth with higher risk-adjusted returns.

Business Characterization Process

A comprehensive framework that classifies businesses across stages and characteristics, enabling better understanding of growth drivers, competitive advantages, capital efficiency, and risk profiles to support informed investment decisions.

Source: BOI Product presentation

The following 3 acumen are considered in the process of Stock Evaluation:

Stock Evaluation Process to create the Fund Universe

Current portfolio positioning

Source: Bank of India MF, Advisorkhoj Research as on 31^st March 2026

Overweight/ Underweight Sectors

Source: Bank of India MF, Advisorkhoj Research as on 31^st March 2026

Current Market Cap Breakup

Source: Bank of India MF, as on 31^st March 2026

Why should you choose Bank of India Multicap Fund?

• Risk Management: The fund managers adopt a disciplined risk management framework that ensures controlled portfolio positioning, with sector active weights capped at +/-10% and stock-specific deviations limited to +/-5% versus the benchmark, maintaining a balance between alpha generation opportunities and risk control.
  
  

  

  Source: BOI Product presentation



• Opportunistically managed market cap tilt: The scheme manages market cap allocation, dynamically tilting across large, mid, and small caps to capture evolving opportunities, while maintaining the regulatory minimum of 25% in each segment.
  
  

  

  Source: BOI Product presentation



• High Active Share reflecting differentiated high conviction bets
  
  

  

Who should invest in the Bank of India Multicap Fund?

• Investors seeking wealth creation over long investment tenures.


• Investors who want a disciplined structure in market cap allocations and do not have over- or under-exposure to any particular market cap segment.


• Investors who can remain disciplined in the face of market volatility. Investors should maintain an investment tenure of 5-7 years for investment into Multicap funds.


• SIP can be highly effective for Multicap funds. Through SIPs, long-term investors can take advantage of market volatility by averaging the rupee cost of units acquired across different market cycles.

Consult your mutual fund distributor or your financial advisor to understand how the Bank of India Multicap Fund can fit into your investment portfolio.