SBI MFSBI launched new fund offer SBI ETF Banking Fund-Mar 2015, an Open Ended Exchange Traded Scheme.The NFO Opens for subscription on 2nd Mar 2015  & closes on 5th Mar 2015.Scheme re-opens on or before 20th Mar,2015.No Entry or Exit load will be applicable for the scheme.

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[wptabtitle] Scheme Details[/wptabtitle] [wptabcontent]

::Key Scheme Feature:: 

Scheme NameSBI ETF Banking Fund
Fund HouseSBI ETF Banking Fund
TypeOpen ended Exchange Traded Scheme
BenchMarkCNX Bank Index
Minimum Application amountRs. 5000 and in multiples of Re. 1/- thereof.
Fund managerMr. Raviprakash Sharma
Scheme NameSBI ETF Banking Fund
NFO OpenMarch 02, 2015
NFO CloseMarch 05, 2015
Additional Purchase AmountOffer of Units of Rs. 10/- per unit
Plan OptionsRegular plan.
Load StructureEntry Load: Not Applicable Exit Load:Not Applicable

Cheque Details  : “SBI ETF Banking Fund”  


The investment objective of the scheme is to provide returns that, closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.However there is no guarantee or assurance that the investment objective of the scheme will be achieved.


[wptabtitle]Who Invest[/wptabtitle][wptabcontent]::Who can invest::

Prospective investors are advised to satisfy themselves that they are not prohibited by any law governing such entity and any Indian law from investing in the Scheme and are authorized to purchase units of mutual funds as per their respective
constitutions, charter documents, corporate / other authorisations and relevant statutory provisions. The following is an indicative list of persons who are generally eligible and may apply for subscription to the Units of the Scheme:

  • Indian resident adult individuals, either singly or jointly (not exceeding three);
  • Minor through parent / lawful guardian;(please see the note below)
  • Companies, bodies corporate, public sector undertakings, association of persons or bodies of individuals and societies registered under the Societies Registration Act, 1860;
  • Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as required) and Private Trusts authorised to invest in mutual fund schemes under their trust deeds;
  • Partnership Firms constituted under the Partnership Act, 1932;
  • A Hindu Undivided Family (HUF) through its Karta;
  • Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions;
  • Non-Resident Indians (NRIs) / Persons of Indian Origin (PIO) on full repatriation basis or on nonrepatriation basis;
  • Foreign Institutional Investors (FIIs) registered with SEBI on full repatriation basis;
  • Foreign Portfolio Investor
  • Qualified foreign Investor
  • Army, Air Force, Navy and other para-military funds and eligible institutions;
  • Scientific and Industrial Research Organisations;
  • Provident / Pension / Gratuity and such other Funds as and when permitted to invest;
  • International Multilateral Agencies approved by the Government of India / RBI; and
  • The Trustee, AMC or Sponsor or their associates (if eligible and permitted under prevailing laws).
  • A Mutual Fund through its schemes, including Fund of Funds schemes.
  • Qualified Foreign investor

Note: Minor can invest in any scheme of SBI Mutual Fund through his/her guardian only. Minor Unit Holder on becoming major is required to provide prescribed document for changing the status in the Fund’s records from ‘Minor’ to ‘Major’. For details of the documentation pertaining to investment made on behalf of minor, please refer to Statement of Additional Information (SAI).


[wptabtitle]Strategy[/wptabtitle] [wptabcontent]


      The Scheme will track CNX Bank Index and will use a “passive” or indexing approach to endeavour to achieve scheme’s investment objective. Unlike other funds, the scheme will not try to “beat” the market it track and do not seek temporary defensive positions when market decline or appear over valued. The AMC does not make any judgments about the investment merit of a particular stock or a particular industry segment nor will it attempt to apply any economic, financial or market analysis. Indexing eliminates active management risks with regard to over/ underperformance vis-à-vis a benchmark.

        Since the scheme is an exchange traded fund, the scheme will only invest in the securities constituting the underlying index. However, Due to corporate action in companies comprising of the index, the scheme may be allocated/allotted securities which are not part of the index. The scheme may hold upto 5% of their total assets in stocks not included in the corresponding Underlying Index. For example, the AMC may invest in stocks not included in the relevant Underlying Index in order to reflect various corporate actions (such as mergers) and other changes in the relevant Underlying Index (such as reconstitutions, additions, deletions and these holdings will be in anticipation and in the direction of impending changes in the underlying index). These investments which fall outside the underlying index due to corporate action shall be rebalanced within a period of one week.



[wptabtitle] ETF [/wptabtitle] [wptabcontent]


  • ETFs are innovative products that provide exposure to an index or a basket of securities that trade on the exchange like a single stock. ETFs have a number of advantages over traditional open-ended index funds as they can be bought and sold on the exchange at prices that are usually close to the actual intra-day NAV of the Scheme. ETFs are an innovation to traditional mutual funds as ETFs provide investors a fund that closely tracks the performance of an index with the ability to buy/sell on an intra-day basis. Unlike listed close ended funds, which trade at substantial premiums or more frequently at discounts to NAV, ETFs are structured in a manner which allows to create new units and redeem outstanding units directly with the fund, thereby ensuring that ETFs trade close to their actual NAVs.
  • ETFs are usually passively managed funds wherein subscription/redemption of units work on the concept of exchange with underlying securities. In other words, large investors/institutions can purchase units by depositing the underlying securities with the mutual fund/AMC and can redeem by receiving the underlying shares in exchange of units. Units can also be bought and sold directly on the exchange.
  • ETFs have all the benefits of indexing such as diversification, low cost and transparency. As ETFs are listed on the exchange, costs of distribution are much lower and the reach is wider. These savings in cost are passed on to the
    investors in the form of lower costs. Furthermore, exchange traded mechanism helps reduce minimal collection,
    disbursement and other processing charges. The structure of ETFs is such that it protects long-term investors from
    inflows and outflows of short-term investor. This is because the fund does not bear extra transaction cost when buying/selling due to frequent subscriptions and redemptions.
  • Tracking Error of ETFs is likely to be low as compared to a normal index fund. Due to the Creation/Redemption of units through the in-kind mechanism the mutual fund can keep lesser funds in cash. Also, time lag between buying/selling units and the underlying shares is much lower.
  • ETFs are highly flexible and can be used as a tool for gaining instant exposure to the equity markets, equitising
    cash or for arbitraging between the cash and futures market.


[wptabtitle]Benifits[/wptabtitle] [wptabcontent]

::Benefits of ETFs::

  • Can be easily bought / sold like any other stock on the exchange through terminals spread across the country.
  • Can be bought / sold anytime during market hours at prices that are expected to be close to actual NAV of the Scheme. Thus, investor invests at real-time prices as opposed to end of day prices.
  • No separate form filling for buying / selling units. It is just a phone call to your broker or a click on the net.
  • Ability to put limit orders.
  • Minimum investment for an ETF is one unit.
  • Protects long-term investors from the inflows and outflows of short-term investors.
  • Flexible as it can be used as a tool for gaining instant exposure to the equity markets, equitising cash,hedging or for arbitraging between the cash and futures market.
  • Helps in increasing liquidity of underlying cash market.
  • Aids low cost arbitrage between futures and cash market.
  • An investor can get a consolidated view of his investments without adding too many different account statements as the units issued would be in demat form. 




::Asset Allocation::








[wptabtitle] Different Scheme[/wptabtitle] [wptabcontent]


        SBI-ETF Banking is a passive exchange traded fund. The Scheme takes no active calls and manages the fund by tracking the underlying index. The passive strategy differ SBI-ETF Banking from all other actively managed schemes offered by SBI Mutual Fund. Following are the details of other passive managed ETFs of SBI Mutual Fund:

SBI ETF BSE100-Mar15
















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