Invest in India’s Top 500 with SBI’s New Nifty 500 Index Fund

SBI Mutual Fund, the largest asset management company in India, has announced the launch of the SBI Nifty 500 Index Fund. This open-ended scheme aims to replicate or track the Nifty 500 Index, offering investors exposure to a wide range of companies across large-cap, mid-cap, and small-cap segments.

Key Details & How It Works

The New Fund Offer (NFO) is open from today, September 17 to September 24, 2024, giving investors a short window to get on board. The fund, managed by Viral Chhadva, will follow the Nifty 500 – TRI as its benchmark. What makes it appealing is the minimum investment of Rs.5,000, making it accessible to a wide range of investors.

The fund uses a passive investment strategy, meaning it’ll replicate the Nifty 500 Index to generate returns, with some tracking error. Around 95-100% of the fund’s assets will be invested in the companies listed in the Nifty 500 Index, while up to 5% will go into government securities, liquid funds, and similar instruments.

Why Consider This Fund?

The SBI Nifty 500 Index Fund stands out by offering exposure to over 92% of India’s total listed market capitalization. This single fund gives you access to not only the big names in the large-cap space but also the mid-cap risers and small-cap up-and-comers. Whether you’re looking for established businesses or those with high growth potential, this fund will have you covered.

Additionally, for those who prefer the Systematic Investment Plan (SIP) route, the fund offers multiple options, including daily, weekly, monthly, and more. The exit load is minimal, at 0.25%, if you decide to exit within 15 days.

Conclusion: So, for people looking for long-term capital appreciation and a diversified portfolio in one go, the SBI Nifty 500 Index Fund is worth having a look at. It’s a relatively low-cost way to tap into the entire market, offering a mix of large, mid, and small-cap companies — all through a single investment.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.