NFO: SBI Mutual Fund Launches SBI Nifty IT Index Fund, Check Details

SBI Mutual Fund has launched the SBI Nifty IT Index Fund, an open-ended scheme that tracks the Nifty IT Index and exposes investors to the Indian IT industry.

NFO Details

The SBI Nifty IT Index Fund's NFO is open from today until February 17, 2025. The scheme will reopen for continuous purchase and redemption within five business days from the allotment date. Under the Index Fund category, the fund is managed by Harsh Sethi which tracks the Nifty IT TRI (Total Returns Index).

Investors can start with a minimum investment of Rs 5,000, with additional investments in multiples of Rs 1. The fund has an exit load of 0.25 per cent for exits within 15 days; after 15 days, no exit load applies.

According to SBI Mutual Funds, the scheme seeks to deliver returns that reflect the total returns of the underlying index’s securities, subject to tracking error. The fund aims to replicate the total returns of the index, offering investors an opportunity to participate in the growth of India’s IT sector. While there is no guarantee that the scheme will achieve this objective due to market risks and tracking deviations.

The fund will allocate 95-100 per cent of its assets to stocks included in the Nifty IT Index. Additionally, it may invest up to 5 per cent in government securities, triparty repo, and units of liquid mutual funds to manage liquidity requirements.

Who Should Invest?

SBI Mutual Funds suggests that the fund is appropriate for investors seeking long-term capital appreciation through investments in equities listed on the Nifty IT Index.

As per the fund details, the risk level is very high so investors should carefully evaluate their risk tolerance before making an investment. Those considering this product can consult with their financial advisors to know whether it aligns with their investment objectives.