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.