SBI MF announced the launch of SBI-ETF 10 Year Gilt, an open-ended exchange traded scheme.SBI-ETF 10 Year Gilt, an open-ended exchange traded scheme.
The scheme would invest up to a minimum of 95 per cent in securities covered by the Nifty 10 year benchmark GSec Index, which have a medium to high risk profile, and residual up to 5 per cent in Money Market instruments including CBLO, which have a low risk profile.
The investment objective of the SBI-ETF 10 Year Gilt is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.
The NFO period for SBI-ETF 10 Year Gilt starts from June 2 to Jun 8. The scheme, thereafter, reopens for on-going subscription from on or before June 22, 2016. No Entry or Exit Load is applicable.
The minimum application amount is INR 5,000 in multiples of INR 1 thereafter during the NFO period. The benchmark for this scheme is Nifty 10 year Benchmark G-Sec Index.
The Fund Manager for SBI-ETF 10 Year Gilt is Mahak Khabia. He is armed with B. Com, MBA - Finance, FRM, CFA, joined SBI Funds Management Private Limited as a Dealer – Fixed Income in 2014, and has over six years of experience in the capital market.
In a press release, Navneet Munot, CIO, SBI Mutual Fund said: “We are happy to launch our first ever fixed income ETF – SBI-ETF 10 Year Gilt. The 10 year gilt segment is one of the most liquid fixed income segments in the Indian debt market. The ETFs too, owing to low costs, occupy unique position in the investment landscape and are listed on the stock exchanges.”