SBI Mutual Fund (SBI MF) launched the Nifty Bank Index Fund on Friday, January 17, offering a great opportunity for investors to invest in some of India’s largest
and most influential banks. This open-ended scheme will track the Nifty Bank Index, which includes the leading banks in the country.
Details of the NFO and Subscription Dates
The New Fund Offer (NFO) for the SBI Nifty Bank Index Fund will open for subscription on January 20 and close on January 31, 2025.
After allotment, the fund will be available for sale and purchase within five business days.
NFO Start Date: January 20, 2025
NFO Close Date: January 31, 2025
Investment Options and Minimum Amount
The minimum investment amount for the SBI Nifty Bank Index Fund is Rs 5,000. After the initial investment, you can invest in multiples of Rs 1.
Additional investments can be made starting from Rs 1,000 in multiples of Rs 1.
Investors can also choose from various Systematic Investment Plan (SIP) options, such as daily, weekly, monthly, quarterly, half-yearly, or annually.
Exit Load Information
An exit load of 0.25% is charged if you withdraw within 15 days from the date of allotment. However, there is no exit load on withdrawals made after 15 days.
Who Should Invest in the SBI Nifty Bank Index Fund?
This scheme is ideal for investors looking for long-term capital growth by investing in securities that make up the Nifty Bank Index.
The objective of the scheme is to provide returns equal to the total return of the securities in the Nifty Bank Index, minus any tracking error.
Around 95-100% of the funds will be invested in securities included in the Nifty Bank Index, with the remaining 0-5% in government securities.
Harsh Sethi is the fund manager for the SBI Nifty Bank Index Fund, and the benchmark index is the Nifty Bank Index TRI.
