SBI Mutual Fund Launches SBI Nifty 500 Index Fund – NFO Details
SBI Mutual Fund has launched the SBI Nifty 500 Index Fund, aiming to replicate the Nifty 500 Index. The NFO is open from September 17 to September 24, 2024, with a minimum investment of ₹5,000 and a 0.25% exit load for early redemptions.
SBI Mutual Fund has introduced the SBI Nifty 500 Index Fund, an open-ended index fund. The primary objective of this fund is to replicate the performance of the Nifty 500 Index. This new fund offer (NFO) is open for subscription from September 17 to September 24, 2024.
Investment Objective
The fund seeks to deliver returns corresponding to the total returns of the securities represented by the Nifty 500 Index, with allowances for tracking errors. The fund has a minimum investment requirement of Rs 5,000. It comes with a 0.25 per cent exit load for redemptions within 15 days of allotment. After 15 days, there is no exit load.
Scheme Allocation
The SBI Nifty 500 Index Fund will invest primarily in securities covered by the Nifty 500 Index, with a minimum allocation of 95 per cent. Up to 5 per cent may be allocated to government securities, triparty repos, or units of liquid mutual funds.
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Suitability for Investors
This fund is designed for investors looking for long-term wealth creation through investments in the broader market, represented by the Nifty 500 Index. It offers exposure to a large basket of stocks across various sectors and market capitalisations.
Benchmark and Performance
The performance of this fund will be benchmarked to the NIFTY 500 TRI (Total Returns Index), which tracks the total returns of all stocks listed on the Nifty 500 Index.
Peer Funds
|
Scheme Name
|
AUM (Crore)
|
Expense Ratio
(per cent)
|
|
Motilal Oswal Nifty
500 Index Fund
|
1990.87
|
0.88
|
|
Axis Nifty 500 Index
Fund
|
-
|
1
|
Fund Manager
The fund will be managed by Viral Chhadva, who has over 17 years of experience in financial services. He is also responsible for managing other index funds and ETFs within SBI Mutual Fund.
Conclusion
This fund provides an option for investors seeking diversified market exposure through the Nifty 500 Index. It is a suitable vehicle for long-term portfolio growth.
Disclaimer: The article is for informational purposes only and not investment advice.