SBI Mutual Fund announced the launch of SBI NIFTY 1D Rate ETF, an open-ended exchange-traded fund replicating/tracking the NIFTY 1D Rate index. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.
The scheme opened for public subscription on October 23, 2023, and will close on October 26, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.
What kind of mutual fund scheme is this?
This is an open-ended exchange-traded fund replicating/tracking the NIFTY 1D Rate index. This product is suitable for investors seeking
- Short-term income solution
- Investment in securities covered by the NIFTY 1D Rate index
What is the main objective of investing in this fund?
The investment objective of the scheme is to generate returns, before expenses, that correspond to the returns of the NIFTY 1D Rate index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
| Instruments |
Indicative allocations (% of total assets) |
Risk Profile | |
|
Minimum |
Maximum |
||
|
Securities comprising NIFTY 1D Rate Index |
95% |
100% |
Low |
|
Repo/Reverse Repo in Government Securities and any other similar overnight instruments, Units of Liquid and overnight schemes, Debt & Money Market Instruments (with maturity not exceeding 91 days) &, and cash & cash equivalents. |
0% |
5% |
Low
|
Are there similar mutual funds in the market?
To date, no asset management company (AMC) has launched any such exchange-traded fund scheme in India.
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the NIFTY 1D Rate index.
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would also be “Nil”.
Who will manage this scheme?
Tejas Soman is the designated fund manager of this scheme.
Does the fund contain any inherent risk?
The scheme involves “Low Risk” as per the details mentioned in the Scheme Information Document. However, investors should consult their wealth advisors if they doubt whether the product is suitable for them.
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Updated: 23 Oct 2023, 05:30 PM IST