Mumbai, 22 November 2018: SBI Mutual Fund, one of the India’s leading mutual fund houses and leaders in the passive management space in the country, announces the launch of SBI – ETF Quality, its 1st Smart Beta offering, an open-ended scheme tracking Nifty200 Quality 30 index.
Smart Beta / Strategy Indices are quant-based models that are designed to strategically, assign weights to securities into an index based upon objective parameters. They apply a series of objective, rules-based screens to index. Companies are then ranked and weighted based upon these specific factors. Exchange Traded Funds or ETFs are a cost-effective investment options to access these smart-beta strategies.
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 NIFTY200 Quality 30 ranked by the ‘quality scores’ while the residual 5% will be invested into money market instruments.
The NFO opens for subscription on November 26, 2018 and closes on November 30, 2018. No entry load and exit load will be applicable for the scheme. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.
Speaking on the launch, Mr. Ashwani Bhatia, MD & CEO said, ‘’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 not only 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.’’
Speaking on the occasion, Mr. Navneet Munot, CFA – Chief Investment Officer said, ‘’SBI Mutual Fund is one of the largest players in the passive management industry and the launch of SBI – ETF Quality is another step in that direction. The fund will invest in the underlying index, NIFTY 200 Quality 30 which includes top 30 companies from its parent NIFTY 200 Index selected based on their quality scores. The quality score for each company is determined on 3 factors profitability, leverage and earnings growth variability’’
The fund manager for this scheme will be Mr. Raviprakash Sharma, who is CA from ICAI and charter holder from CFA Institute, USA. He joined SBI Funds Management Private Limited in 2011. He has over eighteen years of experience in the capital market spanning across Equity & Fixed Income.
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