New Fund Alert: SBI Mutual Fund Introduces Nifty IT Index Fund

The SBI Mutual Fund is an AMC (Asset Management Company) in India that was established in 1987. It is a partnership between the State Bank of India (SBI) and Amundi, a French investment firm.

SBI Mutual Fund has Introduced the SBI Nifty IT Index Fund, an open-ended fund that follows the Nifty IT Index.

The NFO (New Fund Offer) of the scheme is now open for subscription and going to be close on 17th February. After the allotment, the scheme will be available for regular buying and selling within five business days. The main focus of this scheme is to give returns similar to those of the index it follows, with some minor differences due to tracking errors.

This scheme will mainly invest at least 95% and up to 100% of its funds in stocks that are part of the Nifty IT Index and the remaining 5% can be invested in government securities such as G-Secs, state development loans (SDLs), treasury bills, triparty repos, or liquid mutual funds, as per RBI guidelines.

The minimum investment amount is Rs.5,000, and you can add more in multiples of Rs.1. You can also invest through a Systematic Investment Plan (SIP) on a daily, weekly, monthly, quarterly, half-yearly, or yearly basis.

Harsh Sethi is the fund manager for the SBI Nifty IT Index Fund. The scheme will follow the performance of the Nifty IT Index TRI as a benchmark. The scheme is appropriate for investors who are looking for long-term capital growth by investing in companies included in the Nifty IT Index.

This scheme will follow the Nifty IT Index and use a passive or indexing investment approach. Instead of trying to outperform the market, it will simply mirror the index’s performance. Unlike other funds, it won’t take defensive positions during market declines or when prices seem high.

A Mutual Fund Expert said The Indian IT industry is a global leader, playing a key role in the economy, boosting India’s reputation, and creating jobs. With initiatives like Digital India, the industry is set to grow and innovate. Emerging technologies like AI and blockchain are changing the way businesses work, helping India stay ahead in the digital world. The SBI Nifty IT Index Fund lets investors invest in India’s top IT companies, which play a key role in innovation and growth. These companies are shaping the future of the IT sector and changing how we work and live.