SBI Mutual Fund has introduced the SBI Nifty Bank Index Fund, with the NFO opening today, January 20, 2025. The open-ended schedule is intended to replicate or track the Nifty Bank Index.
NFO Details
The New Fund Offer for this fund is open from January 20 to January 31, 2025. A minimum application fee of Rs. 5,000 is available to investors, who may thereafter increase their contributions by multiples of Re 1. Systematic Investment Plans (SIPs) are available on a daily, weekly, monthly, quarterly, semi-annual, or annual basis. The SBI Nifty Bank Index Fund is benchmarked to the Nifty Bank Index Total Return Index (TRI).
According to SBI Mutual Funds, this scheme aims to provide returns that closely correspond to the total returns of the Nifty Bank Index, subject to tracking error. It will allocate 95-100 per cent of its assets to securities covered by the Nifty Bank Index and up to 5 per cent to government securities. This fund is managed by Harsh Sethi.
D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited, said: “India’s banking sector has transformed from stress to stability over the past few years, reflecting the nation’s sustained economic growth. The SBI Nifty Bank Index Fund offers investors a strong opportunity to be part of the evolving Indian banking landscape in a cost-effective manner.”
Nand Kishore, MD & CEO, SBI Funds Management Limited, said: “The banking sector is fundamental to any nation’s economy, enabling capital formation, financial inclusion, and economic growth.”
He further added, the SBI Nifty Bank Index Fund provides investors with the opportunity to invest in the largest and most influential banks in India, which continue to lead and transform the nation’s banking sector.”
Who Should Invest?
The SBI Mutual Fund considers this fund suitable for investors aiming for long-term capital growth and those interested in investing in the securities that make up the Nifty Bank Index. It is an ideal choice for those who wish to gain passive exposure to India’s banking sector by tracking the Nifty Bank Index, said the release.
