SBI Mutual Fund launches SBI Nifty Bank Index Fund
SBI Mutual Fund, India’s largest fund house announces the launch of SBI Nifty Bank Index Fund, open-ended scheme replicating/ tracking Nifty Bank Index. The New Fund Offer (NFO) period for the scheme is January 20 – 31, 2025.
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 error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.
Mr. Nand Kishore, MD & CEO, SBI Funds Management Limited, said: “The banking sector is fundamental to any nation’s economy, enabling capital formation, financial inclusion, and economic growth. Indian banks have distinguished themselves globally by adopting innovative banking models and digital payment systems which have helped drive the credit cycle advancing the country towards a Viksit Bharat. The SBI Nifty Bank Index Fund provides investors with the opportunity to invest in the largest and most influential banks in India, which continue to lead and transform the nation’s banking sector.”
Mr. D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited, said: “India’s banking sector has transformed from stress to stability over the past few years, reflecting the nation’s sustained economic growth. Increased infrastructure spending, ongoing reforms to bring more citizens into formal banking, rising digitalization, robust regulations, and growing business credit needs are expected to further boost the banking sector. Large banks, with their extensive resources and nationwide presence, are poised to steer this growth. The SBI Nifty Bank Index Fund offers investors a strong opportunity to be part of the evolving Indian banking landscape in a cost-effective manner.”
The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the Nifty Bank Index and up to 5% in Government securities (like G-Secs, SDLs, treasury bills and any other like instruments as specified by the RBI from time to time), including triparty repo and units of liquid mutual fund. The minimum application amount required is of Rs. 5,000 and in multiples of Re. 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP (Systematic Investment Plan).
The fund manager for SBI Nifty Bank Index Fund is Mr. Harsh Sethi who has been associated with the fund house since May 2007 and currently manages passive offerings such as SBI Nifty IT ETF, SBI Nifty Consumption ETF, SBI Nifty Private Bank ETF, SBI Nifty Midcap 150 Index Fund, SBI Nifty Small Cap 250 Index Fund and SBI Nifty India Consumption Index Fund.
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