SBI Mutual Fund Introduces Two New PSU Bank Investment Schemes

SBI Mutual Fund has introduced two new passive schemes – SBI BSE PSU Bank Index Fund and SBI BSE PSU Bank ETF, that will track the BSE PSU Bank Index. These funds provide exposure to India’s public sector banking sector and will be available for subscription during the New Fund Offer (NFO) period from March 17 to March 20, 2025.

Scheme Details

The SBI BSE PSU Bank Index Fund is an open-ended index fund, while the SBI BSE PSU Bank ETF is an exchange-traded fund (ETF) that will be listed on the NSE and BSE. Both funds aim to replicate or track the performance of the BSE PSU Bank Index.

Strategy and Allocation

At least 95% of the total assets of these funds will be invested in securities that are part of the BSE PSU Bank Index. The remaining 5% may be allocated to government securities, tri party repos, and liquid mutual funds for liquidity management. The benchmark index for both schemes is the BSE PSU Bank TRI.

During the NFO period, investors can subscribe to these funds with a minimum investment of ₹5,000. Additional investments can be made in multiples of ₹1.

Fund Management

The funds will be managed by Viral Chhadva, who is also responsible for SBI’s Nifty 500 Index Fund, Nifty50 Equal Weight Index Fund, and Nifty50 Equal Weight ETF.

Conclusion

As passive funds, these schemes are to track the BSE PSU Bank Index. The performance of these funds is also subject to market risks. Both funds provide a structured way to invest in PSU banks.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.