Mutual Fund News : SBI Mutual Fund Launches SBI Nifty 50 Equal Weight Index Fund

Publish Date:

SBI Mutual Fund launches – SBI Nifty 50 Equal Weight Index Fund

It is an open-ended scheme replicating/tracking Nifty 50 Equal Weight Index.

Accordingly, 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.

Under normal circumstances, SBI Nifty 50 Equal Weight Index Fund will hold an allocation of 95% to 100% in Securities covered by Nifty50 Equal Weight Index and 0% to 5% in Government. Securities including Triparty Repo, and units of liquid mutual fund.

As per the Scheme Information Document, SBI Nifty 50 Equal Weight Index Fund will track NIFTY50 Equal Weight Index 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 track and do not seek temporary defensive positions when market decline or appear overvalued.

The scheme will primarily invest in the securities constituting the underlying index. However, Due to corporate action in companies comprising of the index, the scheme may be allocated/allotted securities which are not part of the index. The fund management team does not make any judgments about the investment merit of a particular stock or a particular industry segment nor will it attempt to apply any economic, financial or market analysis.

SBI Nifty 50 Equal Weight Index Fund’s performance will be benchmarked against Nifty50 Equal Weight Index.

The scheme will be managed by Mr Viral Chhadva.

[Read: The 4 Key Market Trends that Could Drive Mutual Fund Growth]

The NFO opens for subscription on January 16, 2024 and closes on January 29, 2024. The schemes will reopen for continuous sale and repurchase Within five business days of allotment date.

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

The scheme offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW).