SBI Mutual Fund has announced the launch of SBI NIFTY 1D Rate Liquid ETF – Growth, an open-ended Exchange Traded Fund replicating/tracking NIFTY 1D Rate Index with a relatively low-interest rate risk and relatively low credit risk.
The new fund offer or NFO of the fund is open for subscription and will close on August 7. The fund will re-open for continuous sale and repurchase within five business days from the date of allotment.
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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.
The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in Tri-Party REPOs, Repo in Government Securities, Reverse Repos and any other similar overnight instruments as may be provided by RBI and approved by SEBI and up to 5% in cash and cash equivalents.
The fund manager is Jignesh Shah. The fund will be benchmarked against NIFTY 1D Rate Index. The maximum total expense ratio (TER) permissible under Regulation 52 (6) (b) is upto 1%
Currently, there are no plans under the Scheme. The scheme offers only growth option. The exit load is nil. The scheme will track Nifty 1 D Rate Index and will use a “passive” or indexing approach to endeavour to achieve the scheme's investment objective.
The fund manager’s endeavor would be to rebalance the portfolio in order to mirror the index; however, there may be a short period where the constituents of the portfolio may differ from that of the asset allocation of the scheme.
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In case of any deviation from the asset allocation pattern, the portfolio shall be rebalanced by AMC within 7 days from the date of said deviation
The fund is suitable for investors seeking short term income solutions and want investment in securities covered by NIFTY 1D Rate index.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
The new fund offer or NFO of the fund is open for subscription and will close on August 7. The fund will re-open for continuous sale and repurchase within five business days from the date of allotment.
Also Read | Nifty slips into consolidation: What is the right strategy for mutual fund investors now?
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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.
The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in Tri-Party REPOs, Repo in Government Securities, Reverse Repos and any other similar overnight instruments as may be provided by RBI and approved by SEBI and up to 5% in cash and cash equivalents.
The fund manager is Jignesh Shah. The fund will be benchmarked against NIFTY 1D Rate Index. The maximum total expense ratio (TER) permissible under Regulation 52 (6) (b) is upto 1%
Currently, there are no plans under the Scheme. The scheme offers only growth option. The exit load is nil. The scheme will track Nifty 1 D Rate Index and will use a “passive” or indexing approach to endeavour to achieve the scheme's investment objective.
The fund manager’s endeavor would be to rebalance the portfolio in order to mirror the index; however, there may be a short period where the constituents of the portfolio may differ from that of the asset allocation of the scheme.
Also Read | Axis Mutual Fund message to investors after Viresh Joshi’s arrest
In case of any deviation from the asset allocation pattern, the portfolio shall be rebalanced by AMC within 7 days from the date of said deviation
The fund is suitable for investors seeking short term income solutions and want investment in securities covered by NIFTY 1D Rate index.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
