The fund house received more than 40,000 applications during the NFO period. The NFO was open for subscription from January 16 to January 29.
The fund house collected the money on the back of significant contributions from all distribution channels and a strong interest from the direct channel.
SBI NIFTY50 Equal Weight Index Fund is an open-ended scheme replicating or tracking the NIFTY50 Equal Weight Index, effectively with relatively lower costs.
The investment objective of the scheme is to provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking errors. The scheme will be managed by Viral Chhadva, who has been associated with the fund house since December 2020.The scheme will be benchmarked against NIFTY50 Equal Weight Index. The scheme will offer regular and direct plans both with growth and IDCW options. The scheme will invest 95-100% of its assets in stocks comprising the NIFTY50 Equal Weight Index, 0-5% in equity derivatives or up to 5% in Government securities (like G-Secs, SDLs, treasury bills and any other like instruments as specified by the RBI from time to time), including tri party repo and units of liquid mutual fund.
The minimum application amount will be Rs 5,000 and in multiples of Re 1 thereafter. The minimum application amount for additional purchase will be Rs 1000 and in multiples of Re 1 thereof.
The scheme is suitable for investors who are seeking long-term capital appreciation and want investment in securities covered by Nifty50 Equal Weight Index.
