SBI Nifty IT Index Fund: NFO Opens on February 4

SBI Mutual Fund has launched the SBI Nifty IT Index Fund, an open-ended scheme that aims to track the Nifty IT Index. The fund will primarily invest in stocks that are part of the index, giving investors exposure to major Indian IT companies.

Subscription Period and Investment Details

The New Fund Offer (NFO) will be open for subscription from February 4, 2025, to February 17, 2025. After this period, the scheme will be available for continuous sale and repurchase starting February 3, 2025.

Investors can enter the scheme with a minimum investment of ₹5,000, and additional investments can be made in multiples of ₹1. The fund also offers Systematic Investment Plans (SIPs) with options for daily, weekly, monthly, quarterly, semi-annual, and annual contributions.

Investment Allocation

The scheme will allocate between 95% and 100% of its assets to stocks in the Nifty IT Index. The remaining up to 5% will be invested in Government securities, including G-Secs, State Development Loans (SDLs), Treasury Bills, and other RBI-approved instruments. Investments may also be made in liquid mutual funds and tri party repos.

Fund Objective

The objective of the SBI Nifty IT Index Fund is to provide returns that align with the Nifty IT Index, subject to tracking error. However, there is no guarantee that the fund will achieve this objective.

Composition of the Nifty IT Index

The Nifty IT Index consists of 10 companies from the IT sector listed on the NSE. These companies are involved in areas like software development, IT infrastructure, and hardware. To be included in the index, companies must be part of the IT sector and the Nifty 500 at the time of review.

All in all, this index fund is a passive investment option that tracks a specific sector. As with any investment, performance will depend on market conditions and sector trends. Investors should consider their risk appetite before investing.

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 are subject to market risks, read all scheme-related documents carefully.