SBI Mutual Fund has extended the closure date of its SBI Nifty 500 Index Fund NFO to September 26. This provides investors with additional time to participate in the fund’s new fund offer.
Key Highlights of the Extension
- Original Closure Date: September 24
- Extended Closure Date: September 26
- Announcement: Made through a notice-cum-addendum to unitholders
- Fund Type: Open-ended scheme replicating/tracking the Nifty 500 Index
- Subscription Period: September 17 to September 26
Understanding the SBI Nifty 500 Index Fund
The SBI Nifty 500 Index Fund offers investors the opportunity to gain exposure to a diversified basket of stocks. By tracking the Nifty 500 Index, the fund aims to replicate the performance of the top 500 companies by market capitalization in India. This includes large-cap, mid-cap, and small-cap stocks, providing a broad-based representation of the Indian equity market.
Investment Strategy and Objectives
- Benchmark: Nifty 500 – TRI
- Fund Manager: Viral Chhadva
- Investment Objective: To provide returns that correspond to the total returns of the underlying index, subject to tracking error.
- Asset Allocation: Primarily invests in stocks comprising the Nifty 500 Index (95-100%) and up to 5% in government securities.
Benefits of Investing in Index Funds
- Diversification: Index funds provide instant diversification across a wide range of stocks, reducing individual stock risk.
- Low Expense Ratios: They typically have lower expense ratios compared to actively managed funds, resulting in higher returns.
- Market-Based Performance: Index funds aim to track the market’s performance, eliminating the need for active stock picking.
- Accessibility: They are easily accessible to investors of all levels.
Should You Invest in the SBI Nifty 500 Index Fund?
If you’re looking for a low-cost, diversified way to invest in the Indian equity market, the SBI Nifty 500 Index Fund could be a suitable option. However, it’s essential to consider your overall investment goals, risk tolerance, and time horizon before making any investment decisions.
Read more:Tata Mutual Fund Proposes New Index Fund
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