SBI Mutual Fund Launches Two PSU Bank-Based Passive Funds
SBI Mutual Fund has launched two new passive investment schemes based on Public Sector Unit (PSU) banks: the SBI BSE PSU Bank Index Fund and the SBI BSE PSU Bank ETF. Both funds are open for subscription until March 20th, offering investors the opportunity to participate in the growth of public sector banks by tracking the performance of the BSE PSU Bank Index.
Objective of SBI BSE PSU Bank Index Fund and ETF
The SBI BSE PSU Bank Index Fund is an open-ended scheme, while the SBI BSE PSU Bank ETF is an open-ended exchange-traded fund. The primary objective of both funds is to provide returns closely mirroring the total return of securities included in the BSE PSU Bank Index. To achieve this, the funds will invest a minimum of 95% to 100% in securities of the BSE PSU Bank Index. Additionally, up to 5% may be invested in government securities, tri-party repos, and liquid mutual fund units to meet liquidity requirements.
Minimum Investment Amount and NFO Details
The minimum investment amount for both the SBI BSE PSU Bank Index Fund and the SBI BSE PSU Bank ETF is ₹5000, with investments allowed in multiples of ₹1. The benchmark for these funds will be the BSE PSU Bank TRI. Units of the SBI BSE PSU Bank ETF will be listed on the National Stock Exchange and the Bombay Stock Exchange. A press release from the fund house indicates that these schemes are suitable for investors seeking exposure to PSU banks.
Viral Chhadwa Appointed Fund Manager
Viral Chhadwa has been appointed as the fund manager for both funds. The fund house states that these funds are designed for investors looking to benefit from the performance of PSU banks.
Other NFOs Launched This Week
In addition to these two passive schemes from SBI Mutual Fund, other New Fund Offerings (NFOs) are launching this week. The Tata BSE Quality Index Fund opened on March 17th and will close on March 28th, while the Quant Arbitrage Fund NFO opened for subscription on March 18th and will close on March 27th. The minimum investment amount for both these funds is also ₹5000.
