Publish Date:
SBI Mutual Fund has Introduced a new scheme – SBI CRISIL IBX Gilt Index – April 2029 Fund
It is an open-ended Target Maturity Index Fund investing in constituents of CRISIL IBX Gilt Index – April 2029
Accordingly, the investment objective of the scheme 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.
Under normal circumstances, SBI CRISIL IBX Gilt Index – April 2029 Fund will hold an allocation of 95% to 100% of its assets in Securities covered by CRISIL IBX Gilt Index – April 2029 and 0% to 5% in Government Securities maturing on or before maturity date of the Scheme, Money Market instruments including Triparty Repo and units of liquid mutual fund.
As per the Scheme Information Document, SBI CRISIL IBX Gilt Index – April 2029 Fund will track CRISIL IBX Gilt Index – April 2029 and will use a “passive” or indexing approach to endeavour 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.
The AMC does not make any judgments about the investment merit of a particular security nor will it attempt to apply any economic, financial or market analysis. Indexing eliminates active management risks with regard to over/ underperformance vis-à-vis a benchmark. Since the scheme is an target maturity index fund, the scheme will only invest in the securities constituting the underlying index.
The fund manager’s endeavour would be to rebalance the portfolio in order to mirror the index; The scheme may also invest a portion of its portfolio in government securities maturing on or before the maturity date of the scheme, money market instruments including triparty repo and units of liquid mutual fund to manage the liquidity requirement.
SBI CRISIL IBX Gilt Index – April 2029 Fund’s performance will be benchmarked against CRISIL IBX Gilt Index – April 2029
The scheme will be managed by Mr Dinesh Ahuja
The NFO opens for subscription on September 26, 2022 and closes on October 03, 2022. The scheme will reopen for continuous sale and repurchase within 5 Business Days from the date of allotment.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- and in multiples of any amount thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.
[Read: Should You Invest in SBI CRISIL IBX Gilt Index - April 2029 and June 2036 Index Funds?]