New Delhi: SBI Mutual Fund has announced the launch of Nifty Midcap 150 Index Fund and Nifty Smallcap 250 Index Fund. Both the funds will replicate the performance of their respective underlying indices. The New Fund Offer (NFO) opens on September 21 and closes on September 26.
The minimum application amount required for both the funds is Rs. 5,000 and in multiples of Rs. 1 after that. The schemes will be managed by Harsh Sethi, who also manages other exchange-traded funds at the fund house.
Nifty Midcap 150 Index represents the next 150 companies ranked 101-250 based on absolute market capitalization from the Nifty 500 Index. As of August 30, the top sectors represented in the index were financial services (16.8%), capital goods (14.6%) and oil, gas and consumable fuels (9.2%). The top 3 stocks were Adani Total Gas (5.5%), Bharat Electronics (2%) and Trent (1.7%). The index has given an overall return of 16.7 per cent since inception. The 5-year return (total return, not price return) for the index is 14.9%.
Nifty Smallcap 250 Index represents the remaining 250 companies (companies ranked 251-500) from the Nifty 500 Index. As of August 30, the top sectors in the index were financial services (19.9%), capital goods (14.2%) and chemicals (7.5%). The top 3 stocks were City Union Bank, Elgi Equipments and Central Depository Services (India), weighing 1.6%, 1.3% and 1.3% respectively. Since inception, the index has given an overall return of 15.1%. The 5-year return (total return, not price return) for the index is 9.7%.
Both indices are calculated using the free float market capitalization method.
“As a fund house, we continue to expand our bouquet of offerings in the passive investment segment. Mid and small cap index funds provide a gateway for investors looking to tap into the growth potential of these emerging businesses as they move down the market capitalization curve from small caps to mid caps and eventually large caps,” said DP Singh, Said Deputy MD and Chief Business Officer, SBI Mutual Fund.
Other fund houses like Motilal Oswal Mutual Fund, ICICI Prudential Mutual Fund and Nippon India Mutual Fund also have Nifty Midcap 150 Index Fund and Nifty Smallcap 250 Index Fund.
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