Kolkata: Index funds are one of the fastest growing segments of the Indian mutual fund industry. The indication of popularity of index funds can be obtained from a simple statistic — in 2024, the highest number of funds launched fell in the category of index funds. As many as 76 index funds were offered in the market between January and December 2024. They cumulatively raised Rs 11,896 crore in the last calendar year.
“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,” the company said in a press release.
Opportunity to tap into potential of Indian IT industry
This fund offers an investor the opportunity to invest in Nifty IT Index which comprises of Indian IT companies which are in the business of software development, hardware and IT infrastructure etc. Being a passive fund, its expense ratios would also be lower than actively managed funds. One can invest in both SIP and lumpsum modes. The SIP options available include daily, weekly, monthly, quarterly, semi-annual and even annual.
The NIFTY IT Index comprises of 10 companies listed on the NSE. Harsh Sethi, the manager of this proposed fund, has a vast experience since he also manages passive scheme like SBI Nifty IT ETF, SBI Nifty Consumption ETF, SBI Nifty Private Bank ETF, SBI Nifty Midcap 150 Index Fund, SBI Nifty Small Cap 250 Index Fund, SBI Nifty India Consumption Index Fund and SBI Nifty Bank Index Fund.
Key features about SBI Nifty IT Index NFO
- NFO opens: February 4, 2025
- NFO closes: February 17, 2025
- Minimum investment: Rs 5,000
- Modes of investment: Both SIP and lumpsum
- Fund manager: Harsh Sethi
SBI Mutual Fund is the largest mutual fund house in India and manages assets in excess of Rs 11 lakh crore. The AMC was set up in June 1987. It manages a total of 81 primary schemes till Q3 (October-December) of FY25 and these schemes are virtually in every category — equity, debt, balanced, ELSS, ETF, Fixed Maturity Plans, and Liquid Mutual Funds.
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According to the NFO document, the Nifty IT index fund will invest a minimum of 95% and a maximum of 100% of its assets in equities of the Nifty IT Index and up to 5% in government securities including triparty repo and liquid mutual fund units. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
