The SBI Mutual Fund has launched a new scheme investing in US stocks, its first ever international feeder fund.
Some of its domestic schemes such as SBI Focused Equity already invest a part of their portfolio in international stocks.
Investing Scheme
The fund of fund will invest in its joint venture partner Amundi Funds’ US Pioneer Fund (domiciled in Luxembourg), which invests predominantly in US market securities.
SBI International Access FoF may also invest in other mutual funds/ ETFs domiciled overseas and invest predominantly in US markets.
The scheme will be benchmarked to the S&P 500 Index after converting it to Indian Rupee.
Objective
The scheme’s investment objective is to invest mainly in a broad range of equities of companies that are based in or do most of their business in the US and may invest up to 20 per cent of its assets in securities of non-US companies.
The scheme’s investment will include sustainability profile compared to the benchmark index by integrating ESG factors.
Minimum Investment
The minimum investment required is ₹5,000 and also the underlying fund has a size of USD 2.5 billion.
Comment from CBO
DP Singh, Chief Business Officer, SBI Mutual Fund said:
“Typically most investments of Indian investors happen in Indian stocks.
Global investment will offer strong diversification benefits. The underlying fund has most of today’s fast growing tech companies and follows a strict Environmental Social Governance (ESG) philosophy.”
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