SBI Mutual Fund on April 26 announced the launch of SBI Nifty Next 50 Index Fund, an open-ended index scheme which, it said, would replicate the performance of the Nifty Next 50 Index, efficiently with relatively lower costs.
Date of launch
The index scheme would be launched from April 28 to May 11, 2021, SBI MF said in a statement.
The “open-ended index scheme would track 24-year-old Nifty Next 50 Index”, it added.
Objective of the fund
The investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.
Suitable for whom?
This new scheme would be suitable for investors who are seeking long term capital appreciation, investment in securities covered by Nifty Next 50 Index and gain access to growth of potential market leaders.
The scheme would invest minimum 95% and maximum 100% investment in securities covered by Nifty Next 50 Index with up to 5% in Money Market instruments.
Minimum Investment
The minimum application amount required is of Rs 5,000 and in multiples of Re 1 thereafter, the investments can also be done through daily, weekly, monthly, quarterly, semi-annual and annual SIP.
Comment from MD and CEO
Vinay M. Tonse, “As a fund house, we have built a strong franchise in the passive investment space, in addition to our actively managed funds. I believe SBI Nifty Next 50 Index Fund is a good opportunity for those who want to take advantage of the merits of passive investing and at the same time benefit from the growth potential of future market leaders which comprise the underlying index.”
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