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SBI Mutual Fund, India’s largest fund house, announces the launch of two new schemes: the SBI BSE PSU Bank Index Fund, An open-ended scheme replicating / tracking BSE PSU Bank Index, and the SBI BSE PSU Bank ETF, an open-ended Exchange Traded Fund replicating / tracking BSE PSU Bank Index. These open-ended schemes aim to replicate or track the performance of the BSE PSU Bank Index, offering investors an opportunity to participate in the growth of India’s public sector banking sector. The investment objective of both the SBI BSE PSU Bank Index Fund and the SBI BSE PSU Bank ETF 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 that the investment objective of the schemes will be achieved.

The funds will primarily invest in securities covered by the BSE PSU Bank Index, with a minimum allocation of 95% to 100% of total assets. Additionally, they may allocate up to 5% in government securities, triparty repo, and units of liquid mutual funds to manage liquidity requirements. The minimum investment amount during the NFO period is Rs. 5,000, and in multiples of Re. 1 thereafter, while the benchmark/underlying index will be the BSE PSU Bank TRI. The units of the SBI BSE PSU Bank ETF will be listed on NSE and BSE.

These funds are suitable for investors looking to benefit from the PSU banking sector’s performance, offering a structured way to invest in a diversified portfolio of leading public sector banks. The fund manager for the SBI BSE PSU Bank Index Fund and the SBI BSE PSU Bank ETF will be Mr. Viral Chhadva, who has been associated with the fund house since December 2020 and currently manages the SBI Nifty 500 Index Fund, SBI Nifty50 Equal Weight Index Fund, and SBI Nifty50 Equal Weight ETF.

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