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Bank of India Debt Fund Returns: Staying invested in mutual funds through a Systematic Investment Plan (SIP) over the long term has proven to be a highly effective way to build wealth. One such hybrid fund has generated impressive returns for investors over the past decade. According to data from Value Research, investors who started a monthly SIP of ₹10,000 in the Bank of India Mid & Small Cap Equity & Debt Fund (Regular Plan) 10 years ago have seen their investment grow to over ₹28 lakh today.

Let us examine how this fund has performed over the last decade, its portfolio composition, and the factors to consider before investing in it.

Breakdown of the 10-Year SIP Calculation

According to the Value Research SIP calculator, the fund's 10-year performance report looks like this:

Monthly SIP Amount: ₹10,000

Total Investment (over 10 years): ₹12,00,000 (₹12 lakh)

Total Fund Value: ₹28,89,000 (₹28.89 lakh)

Annualized Return (XIRR): 16.76%

Data released by the fund house indicates that this hybrid scheme recorded a Compound Annual Growth Rate (CAGR) of 13.2% between July 20, 2016, and March 31, 2026. During the same period, the Nifty MidSmallcap 400 TRI delivered a CAGR of 15.4%, while the Nifty 100 TRI delivered 11.7%.

Where and How Does This Fund Invest?

The Bank of India Mid & Small Cap Equity & Debt Fund is an open-ended hybrid scheme. Its primary objective is to capitalize on stock market rallies while simultaneously providing portfolio stability through debt investments. Equity Allocation: The fund invests 65% to 80% of its total assets in shares of mid-cap and small-cap companies.
Debt Allocation: The remaining portion (20% to 35%) is invested in debt and money market instruments.
Benchmark: The scheme's benchmark is a composite index.
Portfolio Allocation: Data as of March 31, 2026

According to data released by the fund house as of March 31, 2026, the portfolio allocation was as follows:

Investment by Market Cap:

Mid-cap stocks: 48.96%

Small-cap stocks: 28.63%

Debt and other instruments: 22.41%

Top Sectors:

Financial Services: 31.33% (largest share)

Capital Goods: 13.75%

Healthcare: 12.35%

Metals and Mining: 7.10%

Automobile and Auto Components: 6.41%

Key Stocks: The fund's top 10 stocks account for 23.46% of the total portfolio, indicating a diversified investment approach rather than concentration in just one or two stocks. Key holdings include Abbott India, Uno Minda, Indian Bank, Glenmark Pharmaceuticals, Aurobindo Pharma, Lloyds Metals and Energy, Bharat Dynamics, Eris Lifesciences, JK Cement, and Jindal Stainless.

What should investors keep in mind?

Due to its significant exposure to mid-cap and small-cap stocks, this fund has the potential to generate higher returns compared to traditional balanced funds, but it also carries higher market risk. Although the debt component of the fund helps to somewhat moderate volatility, it does not entirely eliminate market risk.

Past performance is no guarantee: Mutual fund investments are subject to market risks. Do not base your decision solely on past returns; instead, make investment decisions based on your financial goals, investment horizon, and risk appetite.

Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content