Over Rs 900 crore is raised by SBI MF via the Nifty 50 index fund NFO

Over Rs 900 crore is raised by SBI MF via the Nifty 50 index fund NFO

Since it is a passive product, the new fund is an open-ended plan that essentially tracks or mimics the Nifty 50 equal weight index at comparatively cheap expenses.

The scheme's investment goal is to provide returns that, subject to tracking mistakes, are proportionate to the overall returns of the securities represented by the underlying index.

The biggest fund house, SBI Mutual Fund, has raised over Rs 900 crore via its new fund offer, according to a statement released by the AMC on Saturday. Over 40,000 applications were received for the Nifty 50 Equal Weight Index Fund, which closed on January 29, according to the fund company.

According to the statement, the fund house has seen enormous collections as a result of substantial contributions from all distribution channels and robust direct channel interest. Since it is a passive product, the new fund is an open-ended plan that essentially tracks or mimics the Nifty 50 equal weight index at comparatively cheap expenses. The scheme's investment goal is to provide returns that, subject to tracking mistakes, are proportionate to the overall returns of the securities represented by the underlying index. Viral Chhadwa is the manager of the funds.