SBI Mutual Fund has launched two new investment options: SBI BSE PSU BANK INDEX FUND and SBI BSE PSU BANK ETF.
Both funds are based on the BSE PSU Bank Index (BSE PSU Bank TRI).
The New Fund Offers (NFOs) opened for subscription on March 17, 2025, and will be available for investment until March 20, 2025.
Investment Details and Exit Load
SBI BSE PSU BANK INDEX FUND is an open-ended index fund.
SBI BSE PSU BANK ETF is an open-ended exchange-traded fund.
Both funds follow the BSE PSU Bank TRI Index and require a minimum investment of ₹5,000, with additional investments in multiples of ₹1.
There is no lock-in period, but exit load rules apply:
Index Fund: 0.25% exit load if withdrawn within 15 days of allotment. No exit fee after that.
ETF: No exit load, allowing investors to withdraw anytime.
Investment Allocation and Strategy
According to the Scheme Information Document (SID):
95% to 100% of the investment will go into stocks listed in the BSE PSU Bank TRI Index.
0% to 5% may be allocated to government securities, tri-party repo, or liquid mutual fund units.
Viral Chhadva will manage both funds.
These funds follow a passive investment strategy, meaning they will replicate the index without attempting to outperform the market. The goal is to match index returns while keeping risks low.
Who Should Invest?
SBI Mutual Fund suggests these funds for investors seeking long-term capital growth by investing in BSE PSU Bank TRI Index stocks.
However, they are classified as high-risk investments, as indicated by the riskometer.
