SBI MF launches Nifty200 Value 30 ETF fund of fund; NFO open till September 30

SBI Mutual Fund has launched the SBI Nifty200 Value 30 ETF Fund of Fund (FoF), an open-ended fund of fund scheme that will invest primarily in units of the SBI Nifty200 Value 30 ETF.

The new fund offer (NFO) opened on September 17 and will close on September 30.

According to the scheme details, the fund will invest 95% to 100% of its assets in units of the SBI Nifty200 Value 30 ETF. Up to 5% can be invested in government securities, including government securities (G-Secs), state development loans (SDLs) and treasury bills, as well as triparty repo and units of liquid mutual funds.

The scheme’s investment objective is to provide returns that closely correspond to the returns of the underlying SBI Nifty200 Value 30 ETF. However, the fund house has stated that there is no assurance that the objective will be achieved.

The minimum investment during the NFO is ₹5,000, followed by investments in multiples of ₹1. Additional purchases can be made with a minimum of ₹1,000. The scheme will also offer SIP options on a daily, weekly, monthly, quarterly, half-yearly and annual basis.

Viral Chhadva will manage the scheme. He has been associated with SBI Mutual Fund since December 2020 and manages several passive investment offerings, according to the fund house.

The SBI Nifty200 Value 30 ETF tracks the Nifty200 Value 30 Index, which comprises 30 stocks selected from the Nifty 200 based on value-oriented factors. Investors in the FoF will therefore get exposure to the underlying ETF rather than directly holding the stocks in the index.As with other equity-oriented mutual fund investments, returns from the scheme will be linked to market movements and are not guaranteed.