-
SBI-ETF
10 Year Gilt is SBI Mutual Fund’s 1st Fixed Income ETF
-
SBI-ETF 10 Year Gilt would predominantly
invest in Securities covered
by the Nifty 10 year
Benchmark GSec Index
-
NFO
period – June 02, 2016 to June 08, 2016; Scheme reopens for ongoing
subscription from on or before June 22, 2016
SBI Mutual Fund, amongst India’s
leadingfund housetodayannounced the
launch of its first-ever Fixed Income ETF,SBI-ETF 10 Year Gilt, an open-ended exchange
traded scheme. ETFs, in addition to being cost effective, offer liquidity,
portfolio diversification and above all provide transparency.
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
closelycorrespond to the total returns of the securities as represented by the
underlying index, subject to tracking error.
Speaking
on the occasion, Mr. 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.”
The fund manager would rebalance the portfolio,
based on the fresh issuance of a new 10 year G-sec.SBI-ETF 10 Year Gilt may
invest in derivatives at the time of portfolio rebalancing, albeit for a
shortperiod of time. The exposure of the Schemes in Derivative instruments
shall however, be restricted to 5 per cent of the net assets of the Scheme. For
more information on the asset allocation, please refer to the Scheme
Information Document.
The changes in interest rates affect the prices
of bonds as well as equities. If interest rates rise the prices of bonds fall and
vice versa. Equity might be negatively affected as well, in a rising interest
rate environment. A well-diversifiedportfolio therefore would help mitigate
this interest rate risk.
ETFs, being a passive investmentcarry lesser
risk as compared to active fund management. The portfolio follows theindex and
therefore the level of stock concentration in the portfolio and its volatility
would be the same as that of the index, subject to tracking error. Thus there
is no additional element of volatility or stock concentration on account offund
manager decisions.
The fund manager would endeavour to keep cash
levels at the minimal to control tracking error.
The Scheme would take no active calls and
manage the fund by tracking the underlying index. The Scheme will track Nifty 10
year Benchmark G-Sec Index and will use a “passive” or indexing approach in its
endeavour to achieve scheme’s investment objective. Unlike other funds, the
scheme will not try to “beat” the market it track anddo not seek temporary
defensive positions when market decline or appear overvalued.
Since the scheme is an exchange traded fund,
the scheme will only invest in the securities constituting the underlying index.
However, due to changes in underlying index the scheme may temporarily hold
securities which are not part of the index. These investments which fall outside
the underlying index as mentioned above shall be rebalanced within a period
of 30 days.
The units of the SBI-ETF 10 Year Gilt would be
available in the Dematerialized(electronic) mode.The applicant under the Scheme
will be required to have a beneficiaryaccount with a Depository Participant of
NSDL/CDSL and will be required to indicate in the application the DP’s name, DP
ID Number and beneficiary account number of the applicant with the DP.
The units of the SBI-ETF 10 Year Gilt can be
bought / sold on all trading days on the NationalStock Exchange of India
Limited where the scheme is proposed to be listed. SBI-ETF 10 Year Gilt would
also offer units for subscription / redemption directly with SBI Mutual Fund in
creation unit size to Authorized Participants / and Large Investors, on applicable
NAV prices on all Business Days on-going offer period.
The NFO
period for SBI-ETF 10 Year Gilt starts from June 02, 2016 to June 08, 2016. 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
Mr. Mahak Khabia. Mr Khabia, 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.
About SBI Funds Management Pvt. Ltd.
With over 28 years of
rich experience in fund management, we at SBI Funds Management Pvt. Ltd. bring
forward our expertise by consistently delivering value to our investors. We
have a strong and proud lineage that traces back to the State Bank of India
(SBI) - India's largest bank. We are a Joint Venture between SBI and AMUNDI
(France), one of the world's leading fund management companies. With a network
of 163branches across India, we deliver value and nurture the trust of our vast
and varied family of investors.
Excellence has no
substitute. And to ensure excellence right from the first stage of product
development to the post-investment stage, we are ably guided by our philosophy
of ‘growth through innovation’ and our stable investment policies. This
dedication is what helps our customers achieve their financial objectives.
For further
information please contact:
|
SBI Mutual fund
|
Ketchum Sampark
|
|
Prashant Sarangi
+91 9819855275
|
Zohar Reuben
91 9820920816
|
Mutual Fund investments are subject to market risks, read
all scheme related documents carefully.
No comments:
Post a Comment