Nature of fund:
Open-ended index fund.
Investment objective:
This fund seeks to provide maximum returns on investment through investments in the same stocks (and in the same proportion) as the CNX Nifty Index. The fund aims at returns equivalent to those in the Total Returns Index of the CNX Nifty Index by eventually minimizing the difference between the performances of the schemes as reported in the benchmark index versus the scheme. The Total Returns Index reports the profit or loss plus dividends paid (if any) from constituent stocks.
Fund information:
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Inception date
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4th February, 2002.
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CRISIL rank (as in June, 2015)
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CRISIL Rank 3 in the Index Funds category.
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Plans
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Regular.
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Direct.
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Options
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Growth.
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Dividend.
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Schemes
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SBI Nifty Index Regular Growth Fund.
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SBI Nifty Index Regular Dividend Fund.
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SBI Nifty Index Direct Growth Fund.
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SBI Nifty Index Direct Dividend Fund.
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Entry load
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None.
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Exit load
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- 1.00% for exit within 7 days from the date of investment.
- 0.00% for exit after 7 days from the date of investment.
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Minimum investment
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Rs.5,000 (in multiples of Re.1).
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Additional Investment: Rs.1,000 (in multiples of Re.1).
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SIP
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Monthly
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Minimum Rs.1000 (in multiples of Re.1) thereafter for minimum six months.
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Minimum Rs.500 (in multiples of Re.1) thereafter for minimum one year.
Quarterly
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Minimum Rs.1500 (in multiples of Re.1), thereafter for minimum one year.
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Product label – Risk and target investors
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Moderately High Risk.
Target investors are those who seek:
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Long term growth in investments.
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Passive investments in stocks present in the CNX Nifty Index.
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Investments in the same proportion as the CNX Nifty Index.
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Returns equivalent to or higher than the total returns achieved by the CNX Nifty Index itself.
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Benchmark
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CNX Nifty Index
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SWP
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Yes.
Monthly
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Minimum of Rs.500 can be drawn.
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Must indicate in the application form or issue advance.
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Can indicate month and year from which SWP should commence and the frequency.
Quarterly
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Minimum of Rs.500 can be drawn.
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Must indicate in the application form or issue advance.
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Can indicate month and year from which SWP should commence and the frequency.
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STP
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Yes
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Redemption
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Rs.1,000 or 100 units or account balance (whichever is lower).
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The price will be the Applicable NAV minus Exit Load.
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Redemption proceeds will be dispatched within 10 working days.
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Taxation (on investment and on redemption)
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The tax implications of being associated and invested in this mutual fund must be discussed at length with your tax advisor.
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Fund manager
SBI Nifty Index Fund
The Chief Dealer and Fund Manager at SBI Mutual Funds, Mr. Raviprakash Sharma has over 12 years of experience in the field. He has been involved with the Indian capital market in numerous capacities, including portfolio management and dealing in equity shares. He was a Senior Manager with HDFC Asset Management Company Ltd. in the Portfolio Management Services Division. He is a qualified manager with a Bachelor’s degree in Commerce, he is also a Chartered Accountant and a charter holder of the CFA Institute, USA.
Investment philosophy
SBI Nifty Index Fund
- The SBI Nifty Index fund invests up to 100% of its funds in large cap companies.
- It invests in the same proportion as the CNS Nifty Index.
- It aims to minimize the difference between the benchmark index and the scheme and thus aims to achieve equivalent returns.
Portfolio – Top 10 Holdings
Top 10 holdings for the SBI Nifty Index Fund as on June 31st, 2015:
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Equity
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Sector
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Percentage of AUM
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HDFC Bank Ltd.
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Banking / Finance
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7.01%
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HDFC Ltd.
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Banking / Finance
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6.84%
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Infosys Ltd.
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Technology
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6.58%
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ICICI Bank Ltd.
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Banking / Finance
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5.98%
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ITC Ltd.
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Tobacco
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5.91%
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Reliance Industries Ltd.
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Oil & Gas
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5.52%
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Larsen & Toubro Ltd.
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Engineering
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4.88%
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TCS Ltd.
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Technology
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4.37%
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Sun Pharmaceutical Industries Ltd.
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Pharmaceuticals
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3.19%
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Axis Bank Ltd.
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Banking / Finance
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3.17%
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Risk measures:
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Sharpe Ratio
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0.61
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Alpha
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N/A
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Beta
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0.96
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Standard deviation
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13.53%
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Performance
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AUM (as on 30th June, 2015)
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Rs.143.59 crores.
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NAV (as on 2nd September, 2015)
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SBI Nifty Index Regular Growth Fund = 63.9759.
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SBI Nifty Index Regular Dividend Fund = 32.7678.
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SBI Nifty Index Direct Growth Fund = 64.6037.
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SBI Nifty Index Direct Dividend Fund = 33.1564.
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Returns and benchmark comparison
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Â
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Date
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Scheme returns
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CNX Nifty Index
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Since Inception (till 31st March, 2015)
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16.08%
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16.66%
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5 year
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9.93%
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10.09%
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3 year
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16.69%
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17.03%
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1 year
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25.88%
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26.65%
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Â
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Expenses
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Â
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Slab Rates
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SBI Nifty Index Fund expenses as a % of daily net assets
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First 100 crores
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2.50%
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Next 300 crores
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2.25%
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Next 300 crores
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2.00%
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Balance Assets
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1.75%
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Â
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Â
Expert view of the fund + outlook
As the scheme invests in the same equities as the CNS Nifty Index, and aims to generate profits through a difference between the index and the scheme, new investors are advised to stay away from it. As the scheme’s performance has been less than satisfactory, those who have already invested in this scheme are opting out of it and finding other better schemes and funds in which to invest.
How to apply – online + distributors
You can apply online through the SBI mutual funds website, or alternatively call the SBI mutual funds office and they will guide you through a step-by-step procedure on how to invest. At any stage during your research on the SBI website, scroll to the top right of the screen and you will find a button that you can click on to express your interest in investing in the fund. You can physically walk in to the SBI branch and fill up your KYC forms after which you will be directed on how to invest through the mutual funds investment desk at the branch. There’s a 24/7 dedicated toll free number you can call, and you can also send an SMS showing your intent to invest. All these details of the number to call or SMS can be found on the SBI mutual funds website. You can also contact any one of SBI’s Investor Service Centres.
