Mumbai, May 19, 2023: SBI Mutual Fund, India’s largest domestic fund house announces the launch of SBI S&P BSE Sensex Index Fund, an open-ended scheme tracking S&P BSE Sensex Index, effectively with relatively lower costs as it is a passive offering. The New Fund Offer (NFO) period for the scheme is May 18, 2023 – May 24, 2023.
The investment objective of the scheme is to replicate the composition of the S&P BSE Sensex Index and to generate returns that are commensurate with the performance of the S&P BSE Sensex Index, subject to tracking errors. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.
Mr. Shamsher Singh, MD & CEO, SBI Funds Management Limited said: “As a fund house, we have built a strong franchise in the passive investment space, in addition to our actively managed funds. Investors, especially first-time equity investors, seeking returns that track the broader market passively at a relatively lower cost to achieve their financial goals, can consider investing in this fund.”
Mr. D P Singh, Deputy MD & CBO, SBI Funds Management Limited, said, “We continue to expand our bouquet of offerings in the passive investment space. I believe SBI S&P BSE Sensex Index Fund is a good opportunity for those who want to take advantage of the merits of passive investing while aiming to benefit from the growth of the 30 largest companies in India (by market cap), part of the underlying index, which steer India’s economy.”
The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the S&P BSE Sensex 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. The benchmark index of the scheme is the S&P BSE Sensex TRI.
The fund manager for SBI S&P BSE Sensex Index Fund would be Mr. Raviprakash Sharma, who manages many passive funds including Exchange Traded Funds at SBI Mutual Fund like SBI Nifty Index Fund, SBI Nifty Next 50 Index Fund, SBI Equity Minimum Variance Fund, SBI S&P BSE Sensex ETF, SBI Gold Fund, SBI Nifty Bank ETF, SBI S&P BSE 100 ETF, SBI Nifty Next 50 ETF, SBI Nifty 50 ETF, SBI S&P BSE Sensex Next 50 ETF and SBI NIFTY 200 Quality 30 ETF.