Mutual Fund News : SBI Mutual Fund Introduces SBI ETF IT

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SBI Mutual Fund has launched a new scheme - SBI ETF IT.

It is an open ended Exchange Traded Fund that will track the Nifty IT Index.

Accordingly, the investment objective of the schemes is to provide return 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.

Under normal circumstances the scheme will invest at least 95% of its assets Securities covered by the underlying Nifty IT Index. A very small portion (0% to 5% of its assets) may be kept in Equity Derivatives; and 0% to 5% in Money Market instruments including Triparty repo and units of liquid mutual fund.

SBI ETF IT will track Nifty IT Index and will use a “passive” or indexing approach to endeavor to achieve scheme’s investment objective. Unlike other funds, the scheme will not try to “beat” the market it tracks and do not seek temporary defensive positions when market decline or appear overvalued. Indexing eliminates active management risks with regard to over/ underperformance vis-à-vis a benchmark.

Being an exchange traded fund, SBI ETF IT will mirror the underlying Nifty IT Index and invest only in the securities constituting the index. However, due to changes in underlying index the scheme may temporarily hold securities which are not part of the index.

The funds performance will be benchmarked against Nifty IT TRI (Total Return Index).

It will be managed by Mr Harsh Sethi.

The NFO opens for subscription on October 06, 2020 and closes on October 13, 2020. The scheme will reopen within 5 business days from the date of allotment.

The Units of the Scheme will be listed on National Stock Exchange of India Limited.