SBI BSE PSU Bank Index Fund and SBI BSE PSU Bank ETF aim to provide returns corresponding to that of securities in underlying index
Mumbai: SBI Mutual Fund has launched two new open-ended schemes tracking the performance of the BSE PSU Bank Index, offering investors an opportunity to capitalise on the growth of public sector banking. The new fund offer (NFO) period for SBI BSE PSU Bank Index Fund and SBI BSE PSU Bank ETF will open on March 17 and close on March 20. The investment objective of both funds is to provide returns that correspond to the total returns of the securities represented by the underlying index, subject to tracking error. However, there is no assurance that the investment objective will be achieved, said SBI Mutual Fund.
The two funds will invest in securities covered by the BSE PSU Bank Index, with a minimum allocation of 95 per cent to 100 per cent of total assets. To manage liquidity requirements, they may allocate up to 5 per cent in government securities, tri party repo, and units of liquid mutual funds.
The minimum investment amount during the NFO period is Rs 5,000, with additional investments in multiples of Re 1 thereafter. The benchmark index for both funds will be the BSE PSU Bank TRI. Furthermore, the SBI BSE PSU Bank ETF will be listed on both the NSE and BSE, allowing investors to trade units on the stock exchanges. Viral Chhadva will manage the two funds.
These funds are suitable for investors seeking exposure to the PSU banking sector’s performance through a structured investment approach. By tracking the BSE PSU Bank Index, the funds offer a diversified portfolio of leading public sector banks, making them an attractive option for those looking to participate in the growth of this sector.
