SBI Mutual Fund launches SBI Sensex ETF
SBI Mutual Fund launched SBI Sensex ETF scheme first time equity investors.
It is eligible under Rajiv Gandhi Equity Savings Scheme (RGESS) 2012.
SBI Sensex ETF is SBI Mutual Fund’s first equity ETF, which would, take exposure in the defined basket of stocks in SENSEX index, in the same proportion. SBI Sensex ETF would thus passively invest in the best of Indian companies, which offer superior financial performance, better governance coupled with maximum liquidity, thereby making a comfortable start for the first time investors.
The minimum investment during the NFO will be Rs 5,000/- and in multiples of Re.1 and allotment of units will be at a premium approximately equal to the difference between face value and allotment price. SBI Sensex ETF comes with a passive investment strategy and at a significantly lower cost to invest in the equity market.
The scheme shall endeavour to provide returns that, before expenses, closely correspond to the returns delivered by BSE Sensex, subject to tracking error, said Mr. Ravi Prakash Sharma, the Fund Manager of this scheme.
A few unique advantages of ETFs are disclosure of portfolio on a daily / real time basis and investors would find it easy to buy and sell at any time during market hours.