Mutual Fund News : SBI Mutual Fund Introduces SBI ETF Private Bank

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SBI Mutual Fund has launched a new scheme - SBI ETF Private Bank.

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

Accordingly, the investment objective of the scheme 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 can be no guarantee or assurance that the investment objective of the Scheme would be achieved.

Under normal circumstances the scheme will invest at least 95% of its assets Securities covered by the underlying Nifty Private Bank 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 Private Bank will track Nifty Private Bank 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 Private Bank will mirror the underlying Nifty Private Bank 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.

SBI ETF Private Bank’s performance will be benchmarked against Nifty Private Bank 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.