Mutual funds have emerged as the investment instrument of choice for a vast multitude of Indians. Despite volatility inflows to the mutual fund industry, especially through the SIP (Systematic Investment Plan), are rising every month and setting new records. In this climate of increrasing trust on SIPs, India’s largest Asset Management Company has floated an NFO (New Fund Offer) to tap into the profits from India’s big banking sector.
“The banking sector is fundamental to any nation’s economy, enabling capital formation, financial inclusion, and economic growth. Indian banks have distinguished themselves globally by adopting innovative banking models and digital payment systems, which have helped drive the credit cycle advancing the country towards a Viksit Bharat. The SBI Nifty Bank Index Fund provides investors with the opportunity to invest in the largest and most influential banks in India, which continue to lead and transform the nation’s banking sector,” Nand Kishore, MD & CEO, SBI Funds Management, has been quoted as saying.
Key facts about SBI Nifty Bank Index Fund
- Name of fund: SBI Nifty Bank Index Fund
- Type of scheme: Open ended
- Category: Index fund
- NFO opens on: January 20, 2025
- NFO closes on: January 31, 2025
- Minimum investment: Rs 5,000
- Entry load: Nil
- Exit load: 0.25% (if redeemed within 15 days)
- Benchmark index: Nifty Bank TRI
- Fund manager: Harsh Sethi
According to the NFO document, one has to invest a minimum amount of Rs 5,000 and multiples of Re 1 thereafter. As fas as the SIP mode is concerned, one can invest in various modes — daily, weekly, monthly, once-in-3-months, once-in-6-months and annual mode.
SBI Nifty bank Index Fund: Suitable for whom?
As mentioned in the offer document, 95-100% of the money will be utilised to invest in securities under the Nifty Bank Index. The rest ie, 0-5% will be invested in government securities and liquid mutual fund units. The scheme could be suitable for those investors who are looking for long-term capital appreciation and investment in securities covered by Nifty Bank Index.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
SBI Nifty Bank Index Fund will be an open-ended mutual fund Nifty Bank Index and the NFO (New Fund Offer) will open on January 20 for the public to invest. SBI Mutual Fund, India’s biggest AMC, has said that one has to put in a minimum of Rs 5,000. The NFO window will close on January 31. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
