Kolkata : SBI Mutual Fund, India’s largest fund house announces the launch of SBI Nifty 500 Index Fund, open-ended scheme replicating/ tracking Nifty 500 Index, as a part of its passive offering. The New Fund Offer (NFO) period for the scheme is September 17 – 24, 2024.
The investment objective of the scheme is to provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.
Mr. Shamsher Singh, MD & CEO, SBI Funds Management Limited said: “As the largest fund house in the country, we continue to build on our strong franchise in the passive investment space, in addition to our actively managed funds. The SBI Nifty 500 Index Fund offers investors the opportunity to invest in companies across the entire Indian economy, encompassing over 92% of the total market cap of all listed companies. Investors who seek exposure to not only established large cap companies but also mid and small caps, passively and at a relatively lower cost can consider investing in this fund.”
Mr. D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited, said, “The SBI Nifty 500 Index Fund is an opportunity for those who want to invest in one fund encompassing established (large caps), growing (mid-caps) and young (small cap) businesses. What you get in effect is a proxy to the country’s listed universe of companies, spanning various sectors and a multicap-based offering in one index fund.”
The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the Nifty 500 Index and up to 5% in Government securities (like G-Secs, SDLs, treasury bills and any other like instruments as specified by the RBI from time to time), including triparty repo and units of liquid mutual fund. The minimum application amount required is of Rs. 5,000 and in multiples of Re. 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP (Systematic Investment Plan).
The fund manager for SBI Nifty 500 Index Fund would be Mr. Viral Chhadva who has been associated with the fund house since December 2020 and currently manages SBI Nifty50 Equal Weight Index Fund and SBI Nifty50 Equal Weight ETF.
