The investment would have involved a total contribution of ₹12 lakh and delivered an annualised return (XIRR) of 16.76%.
The SIP illustration is based on the scheme’s historical performance. Actual returns may vary depending on the investment period, market conditions and expenses. Past performance may or may not be sustained in the future.
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The hybrid fund invests predominantly in mid- and small-cap equities while allocating a part of its portfolio to debt securities. According to data released by the fund house, its hybrid investment strategy delivered a 13.2% compounded annual growth rate (CAGR) between July 20, 2016 and March 31, 2026.
Over the same period, the Nifty MidSmallcap 400 Total Return Index (TRI) delivered a CAGR of 15.4%, while the Nifty 100 TRI returned 11.7%, according to the fund house. The comparison is based on historical data and should not be interpreted as an indication of future returns.
How the fund invests
Bank of India Mid & Small Cap Equity & Debt Fund is an open-ended hybrid scheme that typically allocates 65% to 80% of its assets to mid- and small-cap equities, with the balance invested in debt and money market instruments.
The scheme is benchmarked against a composite index comprising 70% Nifty MidSmallcap 400 TRI and 30% CRISIL Short Term Bond Index.
The equity component seeks long-term capital appreciation by investing in mid- and small-cap companies, while the debt allocation is intended to provide relatively greater stability and income generation.
Portfolio allocation
As of March 31, 2026, the fund had 48.96% of its portfolio invested in mid-cap stocks, 28.63% in small-cap companies and 22.41% in debt and other instruments.
Financial services accounted for the largest sector exposure at 31.33%, followed by capital goods (13.75%), healthcare (12.35%), metals and mining (7.10%) and automobile and auto components (6.41%).
The fund’s top 10 holdings together accounted for 23.46% of the portfolio, indicating that the equity allocation is spread across multiple stocks rather than concentrated in a few names.
Among its largest holdings were Abbott India, UNO Minda, Indian Bank, Glenmark Pharmaceuticals, Aurobindo Pharma, Lloyds Metals & Energy, Bharat Dynamics, Eris Lifesciences, JK Cement and Jindal Stainless.
What investors should keep in mind
Hybrid funds with a sizeable allocation to mid- and small-cap stocks can offer higher growth potential than traditional balanced funds, but they are also exposed to higher market volatility. While the debt portion may help cushion fluctuations, it does not eliminate investment risk.
Investors should evaluate such schemes based on their financial goals, investment horizon and risk appetite rather than relying solely on past returns. Mutual fund investments are subject to market risks, and historical performance is not a guarantee of future returns.
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