The SBI BSE PSU Bank Index Fund is an open-ended mutual fund scheme launched by SBI Mutual Fund. Its objective is to provide returns closely matching the total returns of the securities in the underlying index, subject to tracking error. While it aims to replicate the index’s performance, there’s no guarantee the investment objective will be achieved. The fund’s new offer period is from 17th March 2025 to 20th March 2025, with a minimum subscription amount of Rs. 5,000, and in multiples of Re.1 thereafter.

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Investment Objective and Strategy

Objective:

The investment objective of the scheme is to provide returns that, closely correspond to the total returns of the securities as represented
by the underlying index, subject to tracking error. However there is no guarantee or assurance that the investment objective of the scheme will be achieved.

Investment Strategies:

It may be noted that after the closure of the NFO Period/pending deployment of the funds of the Scheme, the Scheme may park the funds in Government securities including Triparty Repo, and units of liquid mutual fund until the full deployment is achieved.

The Scheme may take an exposure to equity derivatives of constituents of the underlying index for short duration when securities of the index are unavailable, insufficient or for rebalancing at the time of change in index or in case of corporate actions, as permitted subject to rebalancing within 7 days (or as specified by SEBI from time to time). The exposure of scheme in derivative instruments for non hedging and rebalancing purpose shall be up to 20% of the net assets of the scheme.

Pursuant to clause 12.24 of SEBI Master Circular for mutual funds dated June 27, 2024, the cumulative gross exposure through equities, in Government securities including Triparty Repo, and units of liquid mutual fund and equity derivatives (gross notional exposure) shall not exceed 100% of net assets of the scheme. 

Securities, T-Bills and repo on Government Securities with residual maturity of less than 91 days may be treated as not creating any exposure:

1. The Scheme shall not invest in repo and reverse repo in corporate debt.
2. The Scheme shall not invest in Credit Default Swaps transactions.
3. The scheme will not invest in ADR/ GDR/ Foreign Securities.
4. The scheme will not invest in Securitized Debt.
5. The scheme shall not engage in short selling.
6. The Scheme shall not invest in unrated debt instrument.
7. The Scheme will not make any investment in debt instruments having structured obligations and credit
8. enhancements.
9. The Scheme shall not invest in debt instruments with special features.
10. The Scheme shall not invest in ReITs and InVITs;
11. The Scheme may engage in stock lending and borrowing upto 20% of net assets of the scheme with
12. maximum single intermediary exposure restricted to 5% of the net assets or as permitted by SEBI from
13. time to time.

The investment in units of Liquid mutual fund is subject to prevailing regulatory limits of aggregate interscheme investment made by all schemes under the same management or in schemes under the
management of any other asset management company which shall not exceed 5% of the net asset value
of the mutual fund.

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Risk Associated with this SBI BSE PSU Bank Index Fund – Direct (G)

a) Equity and Equity related instruments are volatile in nature and are subject to price fluctuations on daily basis. The volatility in the value of the equity and equity related instruments is due to various micro and macro-economic factors affecting the securities markets. This may have adverse impact on individual securities /sector and consequently on the NAV of Scheme.

b) The inability of the Scheme to make intended securities purchases due to settlement problems could cause the Scheme to miss certain investment opportunities as in certain cases, settlement periods may be extended significantly by unforeseen circumstances. Similarly, the inability to sell securities held in the scheme portfolio may result, at times, in potential losses to the scheme, should there be a subsequent
decline in the value of the securities held in the scheme portfolio.

c) Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the investments made by the scheme. Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances leading to delays in receipt of proceeds from sale of securities.