SBI’S NIFTY 500 INDEX FUND: INVEST IN LARGE CAPS, MID CAPS, AND SMALL CAPS ALL IN ONE!
SBI Mutual Fund has announced the launch of a new Nifty 500 Index Fund, providing investors with a unique opportunity to gain exposure to the entire spectrum of the Indian equity market through a single investment.
SBI Nifty 500 Index Fund, an open-ended scheme replicating/ tracking Nifty 500 Index, will be part of SBI Mutual Fund’s passive offering. The NFO or New Fund Offer will remain available for subscription from September 17–24, 2024.
By tracking the Nifty 500 Index, which encompasses the top 500 stocks by market capitalization, this fund offers diversified access to established large-cap leaders, burgeoning mid-caps, and emerging small-cap firms.
Covering approximately 92.1% of the market capitalization of all listed companies on the NSE, the Nifty 500 Index delivers a comprehensive snapshot of the Indian stock market’s dynamics.
SBI Nifty 500 Index Fund investment objective
“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,” SBI Mutual Fund said in a statement.
Shamsher Singh, MD & CEO, SBI Funds Management Limited, said: “As the largest fund house in the country, we continue to build on our strong franchise in the passive investment space, in addition to our actively managed funds. The SBI Nifty 500 Index Fund offers investors the opportunity to invest in companies across the entire Indian economy, encompassing over 92% of the total market cap of all listed companies. Investors who seek exposure to not only established large cap companies but also mid and small caps, passively and at a relatively lower cost can consider investing in this fund.”
D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited, said, “The SBI Nifty 500 Index Fund is an opportunity for those who want to invest in one fund encompassing established (large caps), growing (mid-caps) and young (small cap) businesses. What you get in effect is a proxy to the country’s listed universe of companies, spanning various sectors and a multicap-based offering in one index fund.”
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Investment details for SBI Nifty 500 Index Fund
The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the Nifty 500 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 500 Index Fund would be Viral Chhadva who has been associated with the fund house since December 2020 and currently manages SBI Nifty50 Equal Weight Index Fund and SBI Nifty50 Equal Weight ETF.
2024-09-16T07:42:46Z dg43tfdfdgfd