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SBI Mutual Fund has launched SBI NIFTY50 Equal Weight Index Fund, an open-ended scheme replicating/tracking NIFTY50 Equal Weight Index.
In a press release, Shamsher Singh, MD & CEO, SBI Funds Management said, “As the largest fund house in the country, we continue to build on our strong franchise in the passive investment space, in addition to our actively managed funds. The SBI NIFTY50 Equal Weight Index Fund is a smart-beta strategy, which allocates equal weight to all stocks, instead of considering market cap as the sole criteria. Investors who seek balanced diversification and a broad-based growth potential from all the companies based on its parent index, NIFTY50, passively and at a relatively lower cost can consider investing in this fund.''
DP Singh, Deputy MD & Joint CEO, SBI Funds Management said, "We continue to expand our bouquet of offerings in the passive investment space. In market-cap weighted indices like NIFTY50, a stock / sector might constitute a large weight (or portion) of the index which sometimes leads the index to be driven by them. The fund is an opportunity for those who want to take advantage of the merits of passive investing while aiming to benefit from diversification and growth across the largest companies in India by market cap (part of the underlying index) and sectors, which steer India's economy."
