State Bank of India (SBI) Mutual Fund has rolled out two new investment avenues tailored to capitalise on the growth of India’s public sector banking sector: the SBI BSE PSU Bank Index Fund and the SBI BSE PSU Bank ETF. Both schemes are designed to mirror the performance of the BSE PSU Bank Index, offering investors structured exposure to this key segment of the Indian economy.
The Index Fund is an open-ended scheme that aims to deliver returns closely aligned with the BSE PSU Bank Index, subject to tracking error. While returns are not guaranteed, SBI Mutual Fund has structured the funds to primarily invest 95 per cent to 100 per cent of assets in index stocks, with up to 5 per cent allocated to government securities, tri-party repo, or liquid mutual funds to maintain liquidity.
Key Investment Details:
- Minimum investment during the NFO period is Rs 5,000; additional investments in multiples of Rs 1.
- Benchmark: BSE PSU Bank TRI.
- ETF units will be listed on NSE and BSE for easy trading access.
Who Should Invest?
These schemes are ideal for investors seeking systematic exposure to PSU banks through a diversified, low-cost investment vehicle. Suitable for those optimistic about the long-term potential of India’s public sector banks, the funds provide a convenient route to participate in sectoral growth.
