Mutual Fund News : SBI Mahindra Mutual Fund Introduces SBI Nifty Next 50 Index Fund

Publish Date:

SBI Mahindra Mutual Fund has launched an open-ended equity index scheme - SBI Nifty Next 50 Index Fund.

The scheme will be replicating/tracking Nifty Next 50 Index Fund.

The investment objective of SBI Nifty Next 50 Index Fund is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.

SBI Nifty Next 50 Index Fund is mandated to invest 95% to 100% of its total assets in securities covered by the Nifty Next 50 Index. The scheme may also hold 0% to 5% of its assets in Money Market instruments including triparty repo and units of liquid mutual fund.

Money market instruments include commercial papers, commercial bills, treasury bills, triparty repo, Government securities having an unexpired maturity up to one year, call or notice money, certificate of deposit, usance bills, and any other like instruments as specified by the Reserve Bank of India from time to time.

SBI Nifty Next 50 Index Fund will adopt a passive investment strategy. The scheme will invest in stocks comprising the Nifty Next 50 index in the same proportion as in the index with the objective of achieving returns equivalent to the Total Returns Index of Nifty Next 50 index by minimizing the performance difference between the benchmark index and the scheme. The Total Returns Index is an index that reflects the returns on the index from index gain/ loss plus dividend payments by the constituent stocks.

The scheme will primarily invest in the securities constituting the underlying index. However, due to changes in underlying index the scheme may temporarily hold securities which are not part of the index.

For example, the portfolio may hold securities not included in the respective underlying index as result of certain changes in the underlying index such as reconstitution, addition, deletion etc.

The fund manager’s endeavour would be to rebalance the portfolio in order to mirror the index; however, there may be a short period where the constituents of the portfolio may differ from that of the underlying index.

These investments which fall outside the underlying index as mentioned above shall be rebalanced within a period of 7 days.

SBI Nifty Next 50 Index Fund’s performance will be benchmarked against Nifty Next 50 Index TRI (Total Return Index).

The fund will be managed by Mr Raviprakash Sharma.

The NFO opens for subscription on April 28, 2021, and closes on May 11, 2021. The scheme will reopen for continuous sale and repurchase Within 5 business days from the date of allotment.

The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum capital withdrawal (IDCW) Option.