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SBI-ETF Nifty 50

Nifty 50 is based upon solid economic research and is well respected internationally as a pioneering effort in better understanding how to make a stock market index. Nifty 50 Index is computed using free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalization value.

Nifty 50 Index

  • Launch Date: Nov 03, 1995
  • No. of Constituents: 50
  • Index rebalancing: Semi-Annually

Advantages of ETF’s

      Transparency

      • Investors know the ETF holdings, price and costs.

      Liquidity

      • ETFs offer two sources of liquidity:
      • Traditional liquidity measured by secondary market trading volume
      • Authorized participants boost the liquidity of ETFs.

      Diversification

      • ETFs provide immediate exposure to a basket or group of securities for instant diversification
      • Broad range of asset classes including equities, bonds, commodities, investment themes, etc

      Flexibility

      • ETFs are listed on exchanges and can be traded at any time the market is open
      • Pricing is continuous throughout the day

      Cost effectiveness

      • ETFs offer a cost-effective route to diversified market exposure

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    Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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    Objective

    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.  However there is no guarantee or assurance that the investment objective of the scheme will be achieved.

    Key Features

    • Benchmark & Underlying Index: Nifty 50
    • Creation Unit Size: 50000 units & in multiples of thereof.
    • Dematerialization:
      1. The units of the Scheme will be available in the Dematerialized (electronic) mode only.
      2. The applicant under the Scheme will be required to have a beneficiary account with a Depository Participant of NSDL/CDSL and will be required to indicate in the application, the DP’s name, DP ID Number and beneficiary account number of the applicant with the DP. c) Units of the Schemes will be issued/repurchase and settled compulsorily in dematerialized form. Applications without relevant details of investor’s depository account are liable to be rejected.
    • Exchange Listing: Fund will be listed on National Stock Exchange of India Ltd. (NSE Ltd.)

    Asset Allocation

    Instrument As % of Net Assets (Min.-Max.) Risk Profile
    Securities covered by the
    Nifty 50 Index
    95 % - 100 % Medium to high
    Money Market
    Instrument * including CBLO and Units of liquid mutual funds

    0% to 5% Low
    *Money Market Instruments will include Commercial Paper, Certificates of Deposit, Treasury Bills, Bills Rediscounting, Repos, short term bank deposits, 4 short- term Government securities and any other such short-term instruments as may be allowed under the regulations prevailing from time to time having residual maturity upto 91 days.
    The exposure of Scheme in derivative instruments shall be restricted to 5% of the net assets of the Scheme for portfolio rebalancing.
    The cumulative gross exposure through equities, money market instruments including CBLO, units of Liquid mutual funds and derivatives (gross notional exposure) shall not exceed 100%.

    The scheme will not make any investment in ADR/ GDR/ Foreign Securities/ Securitized Debt.
    The Scheme shall not invest in repo in corporate debt.
    The Scheme shall not engage in short selling.
    The Scheme shall not invest in unrated debt instrument.
    The Scheme may engage in stock lending in accordance with SEBI Mutual Fund Regulations.

    Nifty 50 Index Disclaimer : The SBI-ETF Nifty 50  (the Scheme) offered by SBI Mutual Fund is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL does not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) and disclaims all liability to the owners of the Scheme or any member of the public regarding the advisability of investing in securities generally or in the Scheme linked to Nifty 50 or particularly in the ability of the Nifty 50, Index to track general stock market performance in India. Please read the full Disclaimers in relation to the Nifty 50 in the Scheme Information Document (SID) of the Scheme.

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