Mutual Funds

SBI Mutual Fund Launches SBI Nifty 500 Index Fund, NFO Opens On September 17

The index fund will track the Nifty 500 index. Minimum investment will be Rs 5,000 and in multiples of Re. 1

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SBI Mutual Fund Launches SBI Nifty 500 Index Fund, NFO Opens On September 17
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SBI Mutual Fund on September 16, 2024 announced the launch of SBI Nifty 500 Index Fund. The index fund will track the Nifty 500 Index and use a passive approach to track the benchmark index with no active fund manager participation. This will also make it cheaper in terms of management charges.

NFO Details

The new fund offer (NFO) will remain open from September 17-24, 2024. The minimum application amount is Rs. 5,000 and in multiples of Re. 1, thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annually, or annual systematic investment plans (SIPs). There will be an exit load of 0.25 per cent of the net asset value (NAV) if units are redeemed within 15 days.

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According to a statement by SBI Mutual Fund, the scheme would primarily invest a minimum of 95 per cent and a maximum of 100 per cent of its assets in stocks comprising the Nifty 500 Index and up to 5 per cent in government securities (G-secs), state development loans (SDLs), treasury bills and any other like instruments as specified by the Reserve Bank of India (RBI) from time to time, including triparty repo and units of liquid mutual fund.

It added that the scheme is suitable for investors looking for long-term capital appreciation and those looking to invest in securities covered by the Nifty 500 index.

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Shamsher Singh, managing director and CEO, SBI Funds Management said: “The SBI Nifty 500 Index Fund offers investors the opportunity to invest in companies that constitute 92 per cent of the total market-cap of all listed companies. Investors seeking exposure to not only established large-cap companies, but also in mid- and small-caps, passively, and at a relatively lower cost, can consider investing in this fund.”

DP Singh, deputy managing director and joint CEO, SBI Funds Management 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 multi-cap-based offering in one index fund.”

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