Publish Date:
SBI Mutual Fund has Introduced a new scheme – SBI Nifty Smallcap 250 Index Fund
It is an open-ended scheme tracking Nifty Smallcap 250 Index.
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 Nifty Smallcap 250 Index Fund will hold an allocation of 95% to 100% of its assets in Securities covered by Nifty Smallcap 250 Index and 0% to 5% in Money Market instruments including triparty repo and units of liquid mutual fund.
As per the Scheme Information Document, SBI Nifty Smallcap 250 Index Fund will invest in stocks comprising the Nifty Smallcap 250 index in the same proportion as in the index with the objective of achieving returns equivalent to the Total Returns Index of Nifty Smallcap 250 index by minimizing the performance difference between the benchmark index and the scheme.
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 calendar days.
SBI Nifty Smallcap 250 Index Fund’s performance will be benchmarked against Nifty Smallcap 250 TRI
The scheme will be managed by Mr Harsh Sethi.
The NFO opens for subscription on September 21, 2022 and closes on September 26, 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.