SBI Nifty Bank Index Fund 2025 - Smart Investment Guide!

SBI Nifty Bank Index Fund: Overview

SBI Mutual Fund launched the SBI Nifty Bank Index Fund NFO on Jan 20, 2025. This scheme's NFO period will conclude on 31 Jan 2025. The fund adopts an unresistant operation approach, aiming to replicate the total returns of the Nifty Bank Index while minimizing tracking errors.

SBI Nifty Bank Index Fund: Details

The NFO price is Rs.5000 and in multiples of Rs.1 thereafter. The asset allocation strategy is concentrated on investing 95-100% in securities covered by the indicator, with over 5% in government securities or liquid collective finances. This will help give comprehensive exposure to the banks in India. All by each, this Nifty Bank Index Fund tracks the Nifty 50 indicator, offering exposure to sectors like fiscal services, technology, energy, and consumer masses. 

Fund Objective

To give returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.

For more information about this new NFO Mutual Fund keep reading.

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Fund Overview

 

Taxation

(Source: SID)

Why Invest in This Fund?

• For a minimal investment quantum of INR.5000, get the occasion to invest in the biggest banks in the country.

• The Nifty Bank Index is presently trading near long-term pars, offering a promising entry point. 

• Enjoy the benefits of indicator investing with minimum charges, which aims to maximize your long-term returns. 

• Lift the surge of India's expanding savings, powered by a robust banking sector driving credit growth and digital addition.  

• Will also allow demat account holders to seek exposure to Banking sector.

• Gain access to the 12 largest banks that reflect the backbone of India's fiscal ecosystem, furnishing stable and dependable growth.

About the Index

 

How to Invest in the Scheme After the Closure of the NFO?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then after 5 days from the date of allotment, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “SBI Nifty Bank Index Fund” or directly with the AMC or simply click the ‘Banner’ below.

 

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

 

Nifty Bank Index Returns

Peers of SBI Nifty Bank Index Fund

Risk Factors in Such Funds

• Equity and Equity Related Risks: Equity instruments are volatile because of daily price movements caused by macro and microeconomic determinants. This may affect the scheme's net asset value (NAV).

• Tracking Error Risk: The fund might underperform when expenses, cash balances, and underlying index changes contribute to deviating from the benchmark index.

• Derivatives Risk: Derivatives introduce new investment and risk management techniques with risks such as mispricing, lack of liquidity, or counterparty defaults, which can lead to significant losses.

• Sector Concentration Risk: Since this fund concentrates on the Nifty Bank Index, its exposure to sector-specific risks may contribute to higher volatility and underperformance than more diversified investments.
  
  

Past Performance of Nifty Bank Index Funds

 

SBI Nifty Bank Index Fund-Fund Managers

Mr. Harsh Sethi.

Conclusion

The SBI Nifty Bank Index Fund is an easy way of investing in the Nifty Bank Index. The fund seeks to replicate the performance of the Nifty Bank Index with minimal tracking error, offering investors, primarily those worried about interest rates against the state of common or general stock markets.

Disclaimer: Not a buy or sell recommendation. No investment advice is given. Future returns are not guaranteed by past returns. This NFO analysis is provided solely for informative purposes and should not be considered investment advice. Always conduct research and talk with a financial advisor before investing.