SBI Nifty IT Index Fund NFO | Invest in Top IT Stocks in 2025

SBI Nifty IT Index Fund NFO: Overview

The SBI Nifty IT Index Fund NFO goal is to provide investors with a simple method of gaining exposure to the Indian IT sector comprising software development rights, hardware, IT infrastructure, and allied activities. This scheme is launched by the SBI mutual fund.

The Nifty IT index yields a total of 10 major IT companies listed on the National Stock Exchange - NSE. The companies are selected here on the very basis that when the index is reviewed, they are inclusive of the Nifty 500 index. This index includes some of the prominent IT players in India. 

The SBI mutual fund NAV for different SBI mutual fund plans is available on their website. 

SBI mutual fund returns vary depending on different fund schemes, sectors invested in, time horizon, market volatility, etc.

 

SBI Nifty IT Index Fund: Details

The NFO is priced at Rs.5000 and in multiples of Rs.1 thereafter. The asset allocation strategy is concentrated on investing 95-100% in securities covered by the Nifty IT Index and 0-5% in Government Securities.

 

Fund Objective

The investment objective of the SBI Nifty IT Index Fund is to replicate Nifty IT Index returns in totality, subject to tracking error.

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Fund Overview

 

Taxation

(Source: SID)

Index Returns

Index 1-year total returns have been 19.08%.

 

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 IT 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:

 

Peers of SBI Nifty IT Index Fund

 

Risk Factors in Such Funds

Equity and Equity Related Risk - Equity instruments are exposed to variability risks because they are subject to daily price changes caused by micro and macroeconomic factors. This can affect particular securities or industries captured within the scheme, impacting its Net Asset Value (NAV). 

Risk Associated with Derivatives - Derivatives are risky securities involving payment obligations on future dates and can lead to substantial profits or losses if mismanaged. The consequences also include risks of a counterparty and mispricing or wrong valuation of the derivative. 

Tracking Error Risk - Tracking errors could arise from the inability of the fund manager to replicate the fundamental index perfectly due to certain fees, some corporate activities, and other regulatory policies. 

Sector Risk - Increased exposure to a single zone (IT) within the portfolio increases the volatility, market risk, and performance of the scheme. The underperformance of the sector could bring the scheme to a position of great risk and severely impact its returns which could become negative.

Past Performance of Nifty IT Index Funds

 

SBI Nifty IT Index Fund-Fund Managers

Mr. Harsh Sethi.

Conclusion

The SBI Nifty IT Index Fund NFO provides a hassle-free opportunity to invest in India's leading IT firms. The fund replicates the Nifty IT Index, which makes it a high-risk one owing to concentration in this sector. Before investing, it becomes important to understand risks like market volatility and tracking errors. 

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.