SBI Mutual Fund to Launch Two Equity Index Funds 

• New Fund Offers opens on Wednesday, September 21 and closes on Monday, September 26, 2022
• Nifty Midcap 150 Index and Nifty Smallcap 250 Index have delivered since inception returns of 16.73 % CAGR and 15.08 % respectively (as on August 31, 2022).

New Delhi, September 20, 2022: SBI Mutual Fund today announced the launch of two equity index funds, further expanding its offerings in the passive segment. SBI Nifty Midcap 150 Index Fund and SBI Nifty Smallcap 250 Index Fund are open-ended schemes that would replicate the performance of the underlying indices – Nifty Midcap 150 Index and Nifty Smallcap 250 Index, respectively.

The investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. The new scheme would be suitable for investors who are seeking long-term capital appreciation, through investments in securities covered by the Nifty Midcap 150 Index and the Nifty Smallcap 250 Index and gain access to the potential growth of the companies in the underlying indices.

Mr. D P Singh, Deputy MD & Chief Business Officer, SBI Mutual Fund says, “As a fund house, we continue to expand our bouquet of offerings in the passive investment space. Mid and Small cap Index Funds provide a gateway to investors looking to tap into the growth potential of these emerging businesses as they move up the market capitalisation curve from being small caps to mid-caps and eventually large caps. Investors, especially first-time equity investors, can consider investing in these two funds in line with their risk profile for their long-term wealth creation goals.” Mr. Singh added.

The minimum application amount required for both the funds is Rs. 5,000 and in multiples of Rs. 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP. The scheme would invest a minimum of 95% and a maximum of 100% of its assets in securities covered by the underlying indices – Nifty Midcap 150 Index and the Nifty Smallcap 250 Index, with up to 5% in money market instruments (including commercial papers, commercial bills, Treasury bills, triparty repo, Government securities having an unexpired maturity up to one year, call or notice money, certificates of deposit, usance bills, and any other like instruments as specified by the Reserve Bank of India from time to time) and units of a liquid mutual fund. The benchmarks for these funds are Nifty Midcap 150 TRI and Nifty Smallcap 250 TRI, respectively.

The fund manager for the SBI Nifty Midcap 150 Index Fund and SBI Nifty Smallcap 250 Index Fund would be Mr. Harsh Sethi, who also manages other exchange-traded funds at the fund house.

Fund Details:

• SBI Nifty Midcap 150 Index Fund (An open-ended scheme tracking Nifty Midcap 150 Index)
• SBI Nifty Smallcap 250 Index Fund (An open-ended scheme tracking Nifty Smallcap 250 Index