Investment Objective
SBI Nifty Index Fund adopts a passive investment strategy to replicate the performance of the Nifty 50 index by investing in its constituent stocks in proportion to their weightage in the index. The fund aims at minimizing the performance difference between the scheme and its benchmark index to achieve the same returns as the Total Returns Index of the Nifty 50 index. The Total Returns Index of an index reflects the capital gains/losses generated by that index along with the dividend payments made by its constituent stocks.
Investment Strategies
- SBI Nifty Index Fund uses the passive investment strategy to invest in securities constituting the Nifty 50 index.
- The fund manager aims to rebalance the portfolio by closely mirroring the stock weightage of its underlying index.
- The investments outside the index will be rebalanced within 7 calendar days.
- The investments falling outside the composition and weightage of the Nifty 50 index, due to the changes in the index itself, shall be rebalanced within a period of 7 calendar days.
Who Should Invest
- Investors seeking long term capital appreciation by gaining exposure to the top 50 large cap companies in the country.
- Investors seeking a passive investment strategy to earn returns similar to the Nifty 50 Total Returns Index.
Frequently Asked Questions
What is the risk level of SBI Nifty Index Fund?
As per the fund factsheet published by the fund house, SBI Nifty Index Fund is considered to carry ‘Very High Risk’ for its investors.
Is there any lock-in period in SBI Nifty Index Fund?
SBI Nifty Index Fund has no lock-in period for its investors. Thus, the investors of SBI Nifty Index Fund are free to make redemption requests on any day as per their requirements.
What type of mutual fund is the SBI Nifty Index Fund?
SBI Nifty Index Fund is an open-ended mutual fund scheme. The fund belongs to the ‘Index Fund Category’ tracking Nifty 50 Index.
Is SBI Nifty Index Fund an open-ended or close-ended scheme?
The SBI Nifty Index Fund is an open-ended equity mutual fund scheme.
What is the benchmark index for SBI Nifty Index Fund?
NIFTY 50 TRI is the benchmark index of the SBI Nifty Index Fund. The fund also has BSE Sensex TRI as its additional benchmark index.
