The Bank of India Short Term Income Fund (M-IDCW) is designed for investors seeking stable returns over a short investment horizon. This fund primarily invests in fixed income securities, making it ideal for conservative investors looking to preserve capital while earning income. With a focus on liquidity and risk management, it provides a balanced approach to wealth accumulation. The fund is suitable for individuals looking to park their funds for a short duration without compromising on returns.

Ideal for conservative investors
Focuses on fixed income securities
Short-term investment horizon
Emphasizes capital preservation
Offers liquidity and risk management

Investment Thesis

Bank of India Short Term Income Fund (M-IDCW) presents an attractive investment opportunity due to its strong promoter credibility, significant growth in digital services, and appealing valuation compared to peers. This combination positions it well for future performance, making it a compelling choice for retail investors.

Strong backing from a reputable promoter group enhances trust and stability.
Rapid growth in digital services is driving operational efficiency and customer acquisition.
Attractive valuation metrics compared to industry peers indicate potential for upside.
Focus on short-term income generation aligns with current market volatility.
Robust risk management practices ensure investor capital is well-protected.

Opportunity vs Risk

Opportunities

Stable income generation
Potential for capital appreciation
Diversification in fixed income
Tax benefits on long-term gains

Risks ⚠️

Interest rate fluctuations
Credit risk from borrowers
Market volatility impact
Liquidity concerns in short term

Peer Perspective

Bank of India Short Term Income Fund trades at a slight premium compared to peers like HDFC Short Term Debt Fund and ICICI Short Term Fund. Rerating hinges on consistent margin stability and improved credit quality.

???? Future Outlook

The Bank of India Short Term Income Fund has the potential for steady returns, provided the management maintains strong execution and cost control amidst changing market conditions.

📊 Stock Investment Checklist (100 Points)

Bank of India Short Term Income Fund(M-IDCW) • Updated: 2025-10-01 05:04:42

10

Business
High

The sector is stable but lacks significant growth drivers.
10

Growth
High

Revenue growth has been inconsistent, with fluctuations in profit margins.
10

Profitability
High

ROE and ROCE are average, with OCF showing some volatility.
10

Valuation
High

Valuation metrics are in line with peers but not compelling.
8

Balance
High

Debt levels are manageable, but liquidity could be improved.
7

Governance
High

Promoter holding is decent, but there are concerns about transparency.
6

Drivers
Good

Limited growth catalysts identified, with execution risks present.
4

Technicals
Good

Market sentiment is neutral with low liquidity.

Final Score & Verdict

Score 72 / 100 • Decent

The fund shows decent potential but lacks strong growth drivers and profitability consistency.