SBI Nifty 500 Index Fund :The country’s leading mutual fund asset management company SBI Mutual Fund has announced the launch of its new fund offer (NFO). SBI Mutual Fund’s new scheme SBI Nifty 500 Index Fund is opening for investment from 17 September 2024 and one can invest in it till 24 September 2024. This fund is an open-ended equity scheme which will track the Nifty 500 Index. That is, this scheme will have many better options to create a portfolio.
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Selection from stocks of top 500 companies
The Nifty 500 index includes shares of the top 500 companies based on market capitalization. This fund will select the best shares from among them. These will include large-cap stocks that are already established in the market and are market leaders in their sectors, stocks of fast-growing mid-cap companies and stocks of fast-growing small-cap companies. This will provide better diversification to the portfolio.
Investment Strategy
The scheme will invest a minimum of 95% and a maximum of 100% of its assets primarily in Nifty 500 index stocks and up to 5% in Government Securities (viz. G-Secs, SDLs, Treasury Bills).
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How much can you invest
You can invest in SBI Nifty 500 Index Fund with a minimum of Rs 5000, after which any amount can be invested in multiples of Rs 1. It also has the facility of SIP. There is no lock in period in it, while there is a 0.25% exit load on redemption within 15 days. Covering about 92.1 percent of the market capitalization of all listed companies on NSE, the Nifty 500 index provides a comprehensive snapshot of the dynamics of the Indian stock market.
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What is the objective of this scheme
The investment objective of SBI Nifty 500 Index Fund is to provide a return corresponding to the total return of the securities 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.
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The cost of investment is also low
Shamsher Singh, MD and CEO, SBI Funds Management Limited, said that SBI Nifty 500 Index Fund provides investors an opportunity to invest in companies across the entire Indian economy, which is more than 92% of the total market cap of all listed companies. Investors who want to invest not only in strong large cap companies but also in mid and small caps passively and at a relatively low cost can consider investing in this fund.
DP Singh, Deputy MD and Joint CEO, SBI Funds Management Limited, said SBI Nifty 500 Index Fund is an opportunity for those who want a diversified portfolio by investing across market caps.
(Disclaimer: Here we have given information about the new scheme of mutual fund. This is not an investment advice. There are risks in the market, so take advice from an expert before investing.)
