SBI Mutual Fund launches SBI Nifty IT Index fund: NFO Opens on February 4

This NFO will open for subscription on February 4, and will close on February 17

SBI Mutual Fund has announced the launch of the SBI Nifty IT Index Fund, an open-ended scheme designed to replicate and track the performance of the Nifty IT Index. The New Fund Offer (NFO) will be open for subscription from February 4 till February 17.

 

The SBI Nifty IT Index Fund offers investors an opportunity to gain exposure to the Nifty IT Index, which comprises leading Indian IT companies engaged in software development, hardware, IT infrastructure, and related activities. The index consists of 10 companies listed on the National Stock Exchange (NSE) that are part of the IT sector and Nifty 500 at the time of review.

 

 

“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.

 

The fund’s portfolio will be structured as follows:

 

A minimum of 95 per cent and up to 100 per cent of its assets will be invested in stocks comprising the Nifty IT Index.

 

Up to 5 per cent of assets may be allocated to government securities, including G-Secs, State Development Loans (SDLs), treasury bills, triparty repo, and units of liquid mutual funds, as per the Reserve Bank of India’s (RBI) guidelines.

 

Minimum investment amount: Rs 5,000, with subsequent investments in multiples of Rs 1.

 

SIP options available: Investors can opt for daily, weekly, monthly, quarterly, semi-annual, and annual Systematic Investment Plans (SIP).

 

The SBI Nifty IT Index Fund will be managed by Harsh Sethi.

 

With this latest offering, SBI Mutual Fund aims to cater to investors looking for diversified exposure in the booming IT sector while benefiting from the growth of India’s leading technology companies.

 

Who should consider investing?

 

Investors looking for diversification: This fund offers exposure to India’s leading banks, which are crucial to the country’s economic growth. 

 

Affordable investment: As a passive fund, it typically features lower expense ratios, making it a cost-effective choice. 

 

Potential for long-term growth: With continuous reforms, digital advancements, and rising credit demand, the banking sector is expected to experience strong growth. 

 

Convenient investment options: Flexible SIP plans allow for easy alignment with different financial goals.