NFO Alert: SBI BSE PSU Bank Index Fund: SBI Mutual Fund has announced to launch two new funds. These two NFOs are of SBI BSE PSU Bank Index Fund and SBI BSE PSU Bank ETF. Both schemes are open-ended and the BSE PSU is aimed at tracking or replicating the performance of the bank index. Through these schemes, investors can participate in the growth of government banks of the country.
Nfo ki Investment strategy and portfolio
The aim of SBI BSE PSU Bank Index Fund and SBI BSE PSU Bank ETF is to invest in the same proportion in the shares of public sector banks included in the BSE PSU Bank Index, which has been given in the index. In this way, these index will try to get the returns to repeat the total returns of the fund and the ETF index. However, it may have some tracking error. Allocation of 95% to 100% of these funds portfolio will be in BSE PSU bank index included in the index. Apart from this, these funds can also invest up to 5% in units of other government security, transit repo and liquid mutual funds to manage liquidity requirements.
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NFO duration, minimum investment
The subscription in the New Fund Offer (NFO) of both schemes of SBI Mutual Fund will be open from Monday 17 March 2025 to Thursday 20 March 2025. The minimum investment during the period of NFO is Rs 5,000. After this, one can be invested in a multiple of 1 rupee. Purchasing and selling will start in funds of funds within 5 working days of allotment of the unit.
NFO benchmark and listing
The benchmark/underlineing index of both schemes of SBI Mutual Fund will be BSU Bank Total Return Index (BSE PSU Bank Tri). SBI BSE PSU Bank ETF units will be listed on NSE and BSE, which will provide the facility of trading in the secondary market.
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Exit load and risk level
Selling units within 15 days from allotment in the index fund of SBI Mutual Fund will impose an exit load of 0.25%, while no exit load will have to be given after 15 days. At the same time, there is no exit load in ETF. These schemes are placed in the category of very high risk on the plame.
NFO fund manager
The fund manager of these two schemes will be Viral Chhadva, who has been associated with SBI Mutual Fund House since December 2020. Currently, they are also managing SBI Nifty 500 Index Fund, SBI Nifty5 Equal Weight Index Fund and SBI Nifty50 Equal Weight ETF.
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For whom is this Nfo
This NFO of SBI Mutual Fund can be the right choice for investors who are looking for an easy way to invest in public sector banks. However, they should keep in mind that the market risk is associated with investment in equity mutual funds. Apart from this, sectoral funds are considered more risky than diversified funds. Therefore, before taking any decision related to investment, your ability to take your risk should be thoroughly examined.
(Disclaimer: The purpose of this article is just to give information, do not recommend investing in a fund or scheme. Make decisions related to investment only after getting complete information and taking the opinion of investment advisor.)
