SBI ETF Consumption NFO
SBI Mutual Fund has announced the launch of the SBI ETF Consumption. The scheme would be predominantly investing its assets in the equity securities representing the Nifty India Consumption Index.
The New Fund Offer (NFO) starts on 30th June 2021 and will end on 14th July 2021.
Investment Objective
The scheme’s investment objective is to generate long-term capital growth by providing returns similar to the returns generated by the underlying securities of the Nifty India Consumption Index, less any tracking errors.
Features
- The fund will be investing a minimum of 95% of its assets in the equity securities of the underlying index.
- The fund may allocate up to 5% of its assets in money market instruments, or units of liquid schemes for liquidity.
- The fund may also allocate up to 5% of its assets in equity derivatives
About the Index
- The base or inception date of the index is 02 January 2006
- The index has a total no. of 30 constituent stocks listed on NSE
- The rebalancing of the index is done semi-annually
- Performance: Rs.10,000 invested in January 2006 would have become Rs.62.026 as of May 2021
- Construction: The underlying index i.e Nifty India Consumption Index is designed in a way to reflect the performance of a diversified portfolio of stocks across sectors in the consumption space.
- Sectors: The index constitutes stocks of sectors like Healthcare, Auto, Telecom, Hotels, Consumer Non-durable, Pharmaceuticals, Media. etc.
Top 10 Constituents - Nifty India Consumption Index
| Constituents | Weight(%) |
| Hindustan Unilever | 9.69% |
| ITC | 9.49% |
| Asian Paints | 9.02% |
| Bharti Airtel | 8.69% |
| Maruti Suzuki | 6.33% |
| Mahindra & Mahindra | 5.20% |
| Titan Company | 4.48% |
| Nestle India | 4.24% |
| Bajaj Auto | 3.67% |
| Avenue Supermarts | 3.07% |
Who Should Invest?
This scheme is suitable for investors who are -
- Interested in long-term capital growth.
- Interested in investing in equity securities representing the Nifty India Consumption Index.
- Recommended for investors with an investment horizon of 3-5 years & above.
Asset Allocation Pattern
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) |
| Equity securities representing the Nifty India Consumption Index | 95% | 100% |
| Derivatives | 0% | 5% |
| Units of liquid funds, Money market instruments including Triparty repos | 0% | 5% |
About the Scheme
| Name of the fund | SBI ETF Consumption NFO |
| Fund launched by | SBI Mutual Fund |
| Asset Management Company | SBI Funds Management Private Limited |
| Type of scheme | An open-ended scheme tracking the Nifty India Consumption Index. |
| Investment Objective | The investment objective of the scheme is to generate returns closely corresponding to the total returns of the stocks representing the Nifty India Consumption Index. |
| Benchmark | Nifty India Consumption TR |
| Entry Load | Not Applicable |
| Exit Load | Not Applicable |
| Taxation | Taxed as Equity -If units are redeemed within 12 months, gains are taxed as short term capital gain tax @15% -If units are sold after 12 months, gains are taxed as long term capital gain tax @10% on the gains exceeding ₹ 1 lakh in a financial year |
| Minimum Application Amount | ₹ 5,000 & in multiples of ₹ 1 thereafter |
| Fund Managers | Mr. Harsh Sethi |