SBI Mutual Fund on Thursday announced the launch of SBI ETF Quality, its first smart beta offering, an open-ended scheme tracking Nifty 200 Quality 30 index.
The scheme aims to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. The scheme would invest up to a minimum of 95 per cent in the companies under Nifty 200 Quality 30 ranked by the ‘quality scores’, while the residual 5 per cent will be invested in money market instruments.
The NFO opens for subscription on November 26 and closes on November 30. No entry load and exit load will be applicable for the scheme. The minimum subscription amount is ₹5,000 and in multiples of ₹1 thereafter.
“At SBI Funds Management, it has been our constant endeavour to innovate and provide investment solutions in line with evolving investor needs and global trends. With the launch of our first smart beta strategy, SBI-ETF Quality will provide an opportunity for retail investors to benefit from long-term capital appreciation by investing in quality stocks. The product offers investors an extremely cost-effective alternative to building their portfolios,” said Ashwani Bhatia, MD & CEO, SBI Mutual Fund.