SBI Sensex ETF is a RGESS which opened for subscription on February 9.
SBI Mutual Fund announced the launch of SBI Sensex ETF scheme, eligible under Rajiv Gandhi Equity Savings Scheme (RGESS) 2012.
SBI Sensex ETF is SBI Mutual Fund’s first equity ETF, which would, take exposure in the defined basket of stocks in SENSEX index, in the same proportion. SBI Sensex ETF would thus passively invest in the best of Indian companies, which offer superior financial performance, better governance coupled with maximum liquidity, thereby making a comfortable start for the first time investors.
SBI Sensex ETF comes with a passive investment strategy and at a significantly lower cost to invest in the equity market.
“SBI Sensex ETF is our initiative to further complement government’s efforts to reach out to a diversified class of retail investors. Historically, equity as an asset class has always offered better returns over longer term. For conservative and first time investors, SBI Sensex ETF scheme would be a good diversified product, which gives passive exposure to the investors in well-established and financially sound companies. An ETF product can be best suited for conservative investors as ETFs are known for low cost structures and product efficiency,” said Deepak Chatterjee, Managing Director & CEO, SBI Mutual Fund.
The scheme shall endeavour to provide returns that, before expenses, closely correspond to the returns delivered by BSE Sensex, subject to tracking error, said Ravi Prakash Sharma, the Fund Manager of this scheme.
