The scheme’s new fund offer or NFO will open for subscription on September 17 and close on September 24.
Read also | Silver mutual funds lose up to 8% in three months. Should you buy the dip?
The fund will be compared with Nifty 500 Index – TRI and will be managed by Chhadva viral.
According to the fund manager’s press release, the fund will provide an opportunity to invest in a single index, the Nifty 500 index, which includes the top 500 stocks by market capitalization and covers large-cap, mid-cap and small-cap segments.
The investment objective of the scheme is to provide returns that correspond to the total returns of the securities represented by the underlying index, subject to tracking errors. “As the largest fund manager in the country, we continue to build our strong franchise in the passive investment space in addition to our actively managed funds. The SBI Nifty 500 Index Fund offers investors an opportunity to invest in companies across the Indian economy, covering over 92% of the total market capitalisation of all listed companies. Investors seeking exposure not only to established large-cap companies but also to mid-cap and small-cap companies, passively and at relatively lower cost, can consider investing in this fund,” said Shamsher Singh, Managing Director & CEO, SBI Funds Management Limited. Also Read | 18 small-cap stocks added by these mutual funds in August. Here’s a breakdown
The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in equities comprising the Nifty 500 index and up to 5% in government securities (such as G-Secs, SDLs, Treasury Bills and any other similar instruments as specified by the RBI from time to time), including tripartite repurchase agreements and units of liquid mutual funds.
“The SBI Nifty 500 Index Fund is an opportunity for those who want to invest in a single fund spanning established (large-cap), growing (mid-cap) and young (small-cap) companies. What you get in effect is a reflection of the universe of listed companies in the country, spanning multiple sectors and a multi-cap offering in a single fund.” index fund“said DP Singh, Deputy Managing Director and Joint Chief Executive Officer, SBI Funds Management Limited.
The minimum application amount is Rs 5,000 and thereafter in multiples of Rs 1. The fund also has daily, weekly, monthly, quarterly, half-yearly and annual SIP frequency.
The scheme will track the Nifty 500 index and use a “passive” or indexing approach to attempt to achieve the investment objective of the scheme.
The scheme will be suitable for investors seeking long-term capital appreciation and wish to invest in securities covered by the Nifty 500 index.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.