According to the fund house, these schemes offer investors an opportunity to participate in the growth of India’s public sector banking sector.
SBI Mutual Fund has launched PSU Bank-based two new schemes – the SBI BSE PSU Bank Index Fund and the SBI BSE PSU Bank ETF. As the names suggest, the former one is an open-ended scheme replicating/tracking the BSE PSU Bank Index and the latter one is an open-ended Exchange Traded Fund replicating/tracking the BSE PSU Bank Index.
These open-ended schemes aim to replicate or track the performance of the BSE PSU Bank Index. According to the fund house, these schemes offer investors an opportunity to participate in the growth of India’s public sector banking sector.
“The investment objective of both the SBI BSE PSU Bank Index Fund and the SBI BSE PSU Bank ETF is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error,” it said.
However, investors should be aware that there is no guarantee that the investment objective of the schemes will be achieved.
SBI Mutual Fund PSU bank-focused schemes: Investment strategy and fund details
The funds will primarily invest in securities covered by the BSE PSU Bank Index, with a minimum allocation of 95 per cent to 100 per cent of total assets. Additionally, they may allocate up to 5 per cent in government securities, triparty repo, and units of liquid mutual funds to manage liquidity requirements.
SBI Mutual Fund PSU bank-focused schemes: Minimum investment amount
The minimum investment amount during the NFO period is Rs 5,000, and in multiples of Re 1 thereafter, while the benchmark/underlying index will be the BSE PSU Bank TRI. The units of the SBI BSE PSU Bank ETF will be listed on NSE and BSE.
SBI Mutual Fund PSU bank-focused schemes: Who can invest in this
These funds are suitable for investors looking to benefit from the PSU banking sector’s performance, offering a structured way to invest in a diversified portfolio of leading public sector banks.
