SBI Mutual Fund on Monday announced the launch of SBI Nifty Next 50 Index Fund. This open-ended index scheme would replicate the performance of the Nifty Next 50 Index, efficiently with relatively lower costs.
The investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.
This new scheme would be suitable for investors who are seeking long term capital appreciation, investment in securities covered by Nifty Next 50 Index and gain access to growth of potential market leaders.
It would invest minimum 95% and maximum 100% investment in securities covered by Nifty Next 50 Index with up to 5% in Money Market instruments (including commercial papers, commercial bills, treasury bills, triparty repo, Government securities having an unexpired maturity up to one year, call or notice money, certificate of deposit, usance bills, and any other like instruments as specified by the Reserve Bank of India from time to time) and units of liquid mutual fund.
The minimum application amount required is of ₹5,000 and in multiples of Re1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual and annual SIP.
Vinay M. Tonse, MD and CEO, said: “As a fund house, we have built a strong franchise in the passive investment space, in addition to our actively managed funds. I believe SBI Nifty Next 50 Index Fund is a good opportunity for those who want to take advantage of the merits of passive investing and at the same time benefit from the growth potential of future market leaders which comprise the underlying index.”
D P Singh, Chief Business Officer, said: “SBI Nifty Next 50 Index Fund is our second index fund offering in addition to our existing SBI Nifty Index Fund and other passive offerings in the ETF category.
“We will continue to expand our offerings to customers helping them choose their investments as per their goals.” Mr. Singh added.
The fund will be managed by Raviprakash Sharma, who also manages SBI Nifty Index Fund and other Exchange Traded Funds of the fund house.