SBI Mutual Fund launches SBI NIFTY50 Equal Weight Index Fund

Mumbai, January 16, 2024: SBI Mutual Fund, India’s largest fund house announces the launch of SBI NIFTY50 Equal Weight Index Fund, an open-ended scheme replicating/tracking NIFTY50 Equal Weight Index, effectively with relatively lower costs as it is a passive offering. The New Fund Offer (NFO) period for the scheme is January 16 – January 29, 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 errors. However, there is no guarantee or assurance that the investment objective of the scheme would 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 NIFTY50 Equal Weight Index Fund is a smart-beta strategy which allocates equal weight to all stocks, instead of considering market cap as the sole criteria. Investors who seek balanced diversification and a broad-based growth potential from all the companies based on its parent index, NIFTY50, 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, “We continue to expand our bouquet of offerings in the passive investment space. In market-cap weighted indices like NIFTY50, a stock / sector might constitute a large weight (or portion) of the index which sometimes leads the index to be driven by them. The SBI NIFTY50 Equal Weight Index Fund is an opportunity for those who want to take advantage of the merits of passive investing while aiming to benefit from diversification and growth across the largest companies in India by market cap (part of the underlying index) and sectors, which steer India’s economy.”

The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the NIFTY50 Equal Weight Index, up to 5% in Equity Derivatives or 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 NIFTY50 Equal Weight Index Fund would be Mr. Viral Chhadva, who has been associated with the fund house since December 2020.

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