SBI Mutual Fund has introduced two new investment options centred around India’s public sector banking sector:
SBI BSE PSU Bank Index Fund – An open-ended scheme that mirrors or tracks the BSE PSU Bank Index.
SBI BSE PSU Bank ETF – An open-ended exchange-traded fund (ETF) that also replicates the BSE PSU Bank Index.
Both schemes are designed to offer investors an opportunity to gain exposure to the growth of India’s PSU banking sector. Their objective is to deliver returns closely aligned with the performance of the BSE PSU Bank Index, subject to tracking error. However, SBI Mutual Fund has clarified that achieving this investment objective is not guaranteed.
The funds will primarily allocate 95% to 100% of their assets to stocks listed in the BSE PSU Bank Index. Additionally, up to 5% of assets may be invested in government securities, tri-party repo, and units of liquid mutual funds to ensure liquidity.
Minimum Investment & Listing Details
- The minimum investment amount during the New Fund Offer (NFO) period is ₹5,000, with additional investments allowed in multiples of ₹1.
- The benchmark index for these funds is the BSE PSU Bank TRI.
- Units of the SBI BSE PSU Bank ETF will be listed on both NSE and BSE for trading.
Who Should Invest?
These funds are ideal for investors seeking to capitalise on the performance of PSU banks through a diversified and structured investment vehicle. They provide a systematic way to invest in leading public sector banks, making them a suitable option for those bullish on the sector’s long-term growth potential.
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