SBI Mutual Fund has developed an ETF to track the Nifty Index. For this, NFO will be introduced, which will open from 30 June to 14 July.
SBI Mutual Fund will launch a Consumption Exchange Traded Fund (ETF) that will track the Nifty India Consumption Index. This new fund offer (NFO) for ETFs will run from June 30 to July 14. Through this, it will also be easier to buy and sell your units on the exchanges. The minimum application amount during the NFO period is Rs 5,000, thereafter it will be in multiples of Re 1.
A demat and trading account is required to invest in ETFs. Vinay M. Tonse, MD and CEO, SBI said, “We believe that there is tension around passive funds in the world and in India, so investors want to invest in an index. Investing in ETFs is beneficial for those who want to invest in a wide range of asset classes at a low cost. The addition of funds that are actively managed through SBI ETF consumption, will help in growing our portfolio of offerings in the passive investment segment.”
This ETF has been designed to monitor the behavior and performance of a diversified portfolio of companies representing the domestic consumption sector comprising the Nifty India Consumption Index. This includes consumer non-durables, healthcare, auto, telecommunications services, pharmaceuticals, hotels, media and entertainment.
The Nifty India Consumption Index comprises 30 companies listed on the National Stock Exchange (NSE). Its top 5 are Hindustan Unilever (HUL), ITC, Asian Paints, Bharti Airtel and Maruti Suzuki India. The index has given a return of 36.04% as on 31st May over the previous year and 11.45% in the last 5 years. However, these returns have been volatile.
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