Mumbai: SBI Mutual Fund (SBI MF), one of the leading mutual fund houses in the country, announced the launch of SBI-ETF Sensex Next 50, an open-ended equity scheme, tracking S&P BSE Sensex Next 50 Index.
The scheme aims to generate returns that closely correspond to the total returns of the securities as represented by the underlying index.
The NFO starts for subscription on Sep 05 and closes on Sep 17, 2018. The minimum application amount is INR 5,000 and the units of the scheme can be purchased / redeemed on the exchange.
The scheme would invest up to a minimum of 95 per cent in securities covered by S&P BSE Sensex Next 50 Index, which have a medium to high risk profile. While for the residual 5 per cent, the scheme will look to invest into money market instruments which have a low risk profile.
Speaking on the occasion, Navneet Munot, CFA – Chief Investment Officer, SBI MF said, “SBI Mutual Fund has been a leader in the passive management space. We have built a strong capability in the passive investment side and the launch of SBI-ETF Sensex Next 50 is another step in that direction. The scheme offers investors the opportunity to invest in these high-growth 50 stocks through a cost-efficient and convenient manner.”
The advantage for retail investors to invest in ETFs includes transparency, liquidity, diversification, flexibility and cost effectiveness.
The fund manager for this scheme will be Raviprakash Sharma, who is a CA from ICAI and a charter holder from CFA Institute, USA. He joined SBI Funds Management Private Limited in 2011 and has over 18 years of experience in the capital markets across equity & fixed income segments.