SBI Nifty IT Index Fund: NFO Opens on February 4

SBI Mutual Fund has launched the SBI Nifty IT Index Fund, an open-ended scheme that aims to track the Nifty IT Index. The fund will primarily invest in stocks that are part of the index, giving investors exposure to major Indian IT companies.

Subscription Period and Investment Details

The New Fund Offer (NFO) will be open for subscription from February 4, 2025, to February 17, 2025. After this period, the scheme will be available for continuous sale and repurchase starting February 3, 2025.

Investors can enter the scheme with a minimum investment of ₹5,000, and additional investments can be made in multiples of ₹1. The fund also offers Systematic Investment Plans (SIPs) with options for daily, weekly, monthly, quarterly, semi-annual, and annual contributions.

Investment Allocation

The scheme will allocate between 95% and 100% of its assets to stocks in the Nifty IT Index. The remaining up to 5% will be invested in Government securities, including G-Secs, State Development Loans (SDLs), Treasury Bills, and other RBI-approved instruments. Investments may also be made in liquid mutual funds and tri party repos.

Fund Objective

The objective of the SBI Nifty IT Index Fund is to provide returns that align with the Nifty IT Index, subject to tracking error. However, there is no guarantee that the fund will achieve this objective.

Composition of the Nifty IT Index

The Nifty IT Index consists of 10 companies from the IT sector listed on the NSE. These companies are involved in areas like software development, IT infrastructure, and hardware. To be included in the index, companies must be part of the IT sector and the Nifty 500 at the time of review.

All in all, this index fund is a passive investment option that tracks a specific sector. As with any investment, performance will depend on market conditions and sector trends. Investors should consider their risk appetite before investing.

Plan your SBI SIP investments better! Use our easy-to-use SBI SIP Calculator and estimate future returns with just a few clicks. Your financial growth starts here.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

NFO Alert: Bandhan Mutual Fund Launches Fixed Maturity Plan – Series 209

Bandhan Mutual Fund has launched the Bandhan Fixed Maturity Plan (FMP) – Series 209, a close-ended debt scheme with a 93-day tenure. The New Fund Offer (NFO) opens on February 3, 2025, and closes on February 10, 2025. Once the NFO period ends, fresh investments won’t be allowed, but the scheme is proposed to be listed on BSE Limited (BSE) for trading.

Investment Objective

The scheme aims to generate income by investing in a portfolio of debt and money market instruments that mature on or before the completion of 93 days. It follows a fixed tenure structure, meaning the fund manager will select instruments aligned with this timeline to manage interest rate and reinvestment risks.

Features

  • Minimum Investment: ₹5,000 and multiples of ₹1 thereafter
  • Exit Load: Nil
  • Entry Load: Not applicable
  • Benchmark: Nifty Ultra Short Duration Debt Index A-I
  • Plans Available: Growth and IDCW (Income Distribution cum Capital Withdrawal)
  • Risk Level: Low to Moderate

Fund Management

The scheme is managed by Harshal Joshi, a fund manager with Bandhan Asset Management Company Limited. His role includes selecting debt and money market instruments that fit within the defined risk and maturity parameters of the scheme.

Listing and Liquidity

Being a close-ended fund, units will not be redeemable before maturity. However, investors can trade units on BSE Limited once listed, allowing some flexibility to exit the investment before the tenure ends.

All in all, Bandhan FMP – Series 209 is for short-term investments with a predefined maturity period. It follows a structured approach to investing in debt instruments while maintaining a low to moderate risk profile. 

Investors looking for short-duration debt exposure can consider this fund, keeping in mind the fixed lock-in period and all the risks associated.

Ensure steady returns with systematic withdrawals! Estimate your withdrawals with our SWP Calculator and manage your finances seamlessly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

NFO Alert: Kotak Mutual Launches Fund Nifty 100 Equal Weight ETF

Kotak Mahindra Mutual Fund has introduced the Kotak Nifty 100 Equal Weight ETF, an open-ended exchange-traded fund (ETF) to track the Nifty 100 Equal Weight Index. Unlike traditional market-cap-weighted indices, this index will help ensure equal allocation across 100 stocks, reducing reliance on a few large companies. The fund follows a passive investment approach, adjusting holdings as per index rebalancing.

NFO Details

The New Fund Offer (NFO) period begins on February 3, 2025, and closes on February 17, 2025. Investors can enter with a minimum investment of ₹5,000. The fund does not require incremental investments beyond the initial amount.

Feature Details
NFO Dates February 3, 2025 – February 17, 2025
Exit Load Nil
Risk Level Very High
Fund Manager Devender Singhal
Benchmark Nifty 100 Equal Weight Index (Total Return Index – TRI)
NAV Calculation Daily
Repurchase/Redemption Through stock exchanges at market prices

Investment Objective

The scheme aims to replicate the Nifty 100 Equal Weight Index, seeking returns in line with its performance. However, tracking errors may cause deviations, and there is no guarantee of returns.

Fund Manager and Risk Level

The fund is managed by Devender Singhal, who oversees multiple equity strategies at Kotak Mutual Fund. Since this ETF is fully invested in equities, it carries a very high-risk classification, making it suitable for investors with a long-term horizon.

Benchmark and Liquidity

The ETF is benchmarked against the Nifty 100 Equal Weight Index (Total Return Index – TRI). Units will be listed on stock exchanges and traded at market prices. Investors can buy and sell units during trading hours, similar to regular stocks. The Net Asset Value (NAV) will be calculated daily and published on the fund’s website.

How This ETF Works

Traditional index funds allocate a higher weight to large-cap stocks, leading to concentration in a few companies. This ETF distributes weight equally among 100 stocks, ensuring broader diversification. However, returns will still be subject to overall market movements.

Curious about your SBI SIP returns? Get accurate estimates of your investment growth using our SBI SIP Calculator and stay ahead of your financial goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

Urban Challenge Fund: A ₹1 Lakh Crore Initiative For City Growth in Budget 2025

The Indian government has announced the establishment of an Urban Challenge Fund worth ₹1 lakh crore in the Union Budget 2025. This initiative aims to transform cities into key growth hubs by addressing urban development challenges and fostering sustainable infrastructure.

Urban Development and Infrastructure: 1 Lakh Crore Challenge Fund

The ₹1 lakh crore Urban Challenge Fund is a significant step towards revamping urban infrastructure across the country. This fund will support projects aimed at transforming cities into centres of growth, providing for the creative redevelopment of urban areas, and addressing water and sanitation challenges.

As part of the government’s strategy to incentivise urban reforms, the fund will cover up to 25% of the cost of feasible projects, with a stipulation that at least 50% of the financing comes from bonds, bank loans, or public-private partnerships (PPPs). An initial allocation of ₹10,000 crore has been earmarked for the fiscal year 2025-26 to begin the implementation of these ambitious plans.

Budget’s Comprehensive Focus 

The Union Budget 2025 spans a variety of crucial sectors such as taxation, power, urban development, mining, financial services and regulatory reforms. The government’s focus is on promoting growth, enhancing infrastructure, and improving governance, all while fostering sustainable development across these domains. The Urban Challenge Fund plans to transform the cities into growth hubs, keeping a focus on urban development and infrastructure.

Conclusion

The Urban Challenge Fund represents a significant step towards urban transformation, aiming to build resilient and modern cities. With a structured approach and effective implementation, this initiative has the potential to strengthen India’s urban framework and drive long-term economic growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Budget 2025: Government Modifies Udaan Scheme for Better Connectivity

Finance Minister Nirmala Sitharaman, in her Union Budget 2025 speech on February 1, announced a modified Udaan Scheme to enhance regional air connectivity. The revamped scheme aims to add 120 new destinations across India, significantly expanding travel options for millions.

Since its inception, the Udaan Scheme has facilitated over 1.5 crore middle-class travellers, operationalised 698 routes, and connected 88 ports and airports. Building on this success, the modified version seeks to cater to 4 crore passengers over the next decade, ensuring faster and more affordable air travel for underserved regions.

Boosting Aviation in Remote and Hilly Areas

One of the notable aspects of the modified Udaan Scheme is its focus on helipads and smaller airports in remote, hilly, and northeastern regions. These enhancements aim to improve accessibility and mobility for communities in aspirational districts.

Additionally, the scheme includes the development of greenfield airports in Bihar, supplementing infrastructure projects such as the expansion of Patna Airport and the development of a brownfield airport in Bihta. These measures are expected to drive economic growth and improve connectivity in historically underserved areas.

Western Kosi Canal ERM Project: A Boon for Farmers

Apart from aviation, the budget also allocates financial support for the Western Kosi Canal ERM Project, which will benefit over 50,000 hectares of farmland in the Mithilanchal region of Bihar. The initiative aims to bolster agricultural productivity, ensuring better irrigation facilities and increased efficiency for farmers.

Tourism Development for Employment Generation

Tourism continues to be a pivotal sector for employment and economic growth. The government has announced a strategic plan to develop the top 50 tourist destinations in the country. This initiative will be executed in partnership with state governments through a challenge mode, wherein:

  • States will be required to allocate land for key infrastructure.
  • Hotels in these destinations will be integrated into the infrastructure HML (Harmonised Master List), fostering investment in the hospitality sector.

These measures aim to create jobs, drive tourism-led economic expansion, and improve facilities at India’s most visited travel hotspots.

Maritime Development Fund: A ₹25,000 Crore Initiative

To strengthen India’s maritime infrastructure, the government has introduced a Maritime Development Fund with a corpus of ₹25,000 crore. This fund will:

  • Provide distributed support and encourage competition in the maritime sector.
  • Have up to 49% government contribution, with the remaining funds sourced from ports and private sector investments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Income Tax Slabs of Budget 2025: Rent TDS, Tax Deduction For Senior Citizens and Other Benefits

Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 at 11 AM today. The Budget 2025, focused on providing tax relief to the middle class. One of the most significant announcements was an increase in the rebate limit under the new tax regime, ensuring that individuals earning up to ₹12 lakh annually will not have to pay any income tax.

Revised Income Tax Slabs Under the New Regime

Post-budget, the proposed tax slabs for individual taxpayers under the new regime are as follows:

  • Income up to ₹4,00,000 – No Tax
  • ₹4,00,001 to ₹8,00,000 – 5%
  • ₹8,00,001 to ₹12,00,000 – 10%
  • ₹12,00,001 to ₹16,00,000 – 15%
  • ₹16,00,001 to ₹20,00,000 – 20%
  • ₹20,00,001 to ₹24,00,000 – 25%
  • Above ₹24,00,000 – 30%

This restructuring aims to ease the tax burden on salaried individuals, particularly the middle-income group. Additionally, the standard deduction for salaried taxpayers has been raised to ₹75,000, effectively increasing the tax-free income limit to ₹12.75 lakh.

Rent TDS: A Relief for Tenants

The budget also introduced a significant change in the Tax Deducted at Source (TDS) on rent. The annual threshold for TDS on rental payments has been raised from ₹2.40 lakh to ₹6 lakh. This means that individuals paying rent up to ₹6 lakh annually will no longer be subject to TDS deductions. 

Tax Exemption on Foreign Education Remittances

A notable amendment in the budget is the exemption of Tax Collected at Source (TCS) on remittances for educational purposes. If an individual takes an education loan from a specified financial institution, they will now be exempt from TCS when sending money abroad for education. 

Increased Tax Deduction Limits for Senior Citizens

To support senior citizens, the budget has proposed an increase in the tax deduction limit on interest income. The limit has been doubled to ₹1 lakh, allowing senior citizens to enjoy higher tax savings on their fixed deposit and savings account interest earnings.

Extension of Vivad Se Vishwas 2.0 Scheme

The government has also provided updates on the Vivad Se Vishwas 2.0 scheme, a tax dispute resolution mechanism. As per the finance minister, 33,000 taxpayers have availed themselves of this scheme to settle direct tax disputes. 

Startups and Tax Benefits

In a push to encourage entrepreneurship, the budget has extended the period of incorporation for startups to avail tax benefits by 5 years. This move is expected to provide young businesses with more financial flexibility and a longer runway for tax exemptions.

Extended Time Limit for Filing Updated Tax Returns

Taxpayers now have more time to rectify their tax filings. The budget proposes extending the deadline for filing updated returns from the current 2 years to 4 years. This will allow individuals and businesses to correct past returns and comply with tax regulations without incurring hefty penalties.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

4 New Stocks to Enter F&O Trading from February 28

The National Stock Exchange of India (NSE) has announced the inclusion of 4 additional securities in the futures and options (F&O) segment, effective from February 28, 2025. The move follows the stock selection criteria outlined by SEBI in its circular dated August 30, 2024, and subsequent approval from the market regulator.

Which Stocks Are Being Added in F&O?

As per the latest circular issued by NSE, the following stocks will have F&O contracts available for trading:

  1. Amara Raja Energy & Mobility Limited (ARE&M)
  2. IIFL Finance Limited (IIFL)
  3. Patanjali Foods Limited (PATANJALI)
  4. Titagarh Rail Systems Limited (TITAGARH)

These additions come as part of NSE’s periodic review and are based on the fulfilment of the Quarter Sigma computation cycle of February 2025.

Key Points to Note

  • The market lot size and strike price scheme for these contracts will be communicated via a separate circular on February 27, 2025.
  • The applicable quantity freeze limits for trading will be detailed in the contract file available on NSE’s website.
  • Trading members must update their trading application files before the effective date to ensure a seamless transition.

Recent Inclusion as of Jan 31

With effect from January 31, 2025, 6 new stocks were added in its Futures and Options (F&O) segment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

BSE Share Price in Focus Ahead of Earnings Announcement

BSE Ltd’s share price opened at ₹5,323.50 on February 1, 2025, reaching an intraday high of ₹5,469.45, before closing at ₹5,404 on a provisional basis. Investors are closely watching the stock as the company prepares to announce its financial results for the quarter ended December 31, 2024.

The Board of Directors is scheduled to meet on February 6, 2025, to review and approve the unaudited standalone and consolidated financial results for Q3 FY25 along with the Limited Review Report.

BSE’s Strong Q2 Performance

In the previous quarter, BSE reported a threefold increase in net profit, reaching ₹346 crore for Q2 FY25, compared to ₹118 crore in the same period last year. The exchange also saw a twofold increase in total revenues, rising from ₹367 crore in Q2 FY24 to ₹819 crore in Q2 FY25.

Additionally, BSE recorded its best-ever half-year performance, with revenues of ₹1,493 crore and a net profit of ₹610 crore, according to the company’s MD & CEO, Sundararaman Ramamurthy.

Surge in Trading Volumes

BSE witnessed a significant jump in trading volumes across various segments:

  • Equity Cash Segment: The average daily turnover rose to ₹9,768 crore in Q2 FY25, up from ₹5,922 crore in Q2 FY24.
  • Equity Derivatives Segment: The average daily premium turnover surged to ₹8,203 crore in Q2 FY25, a sharp increase from ₹768 crore in the same period last year.

BSE StAR MF’s Strong Growth

BSE StAR MF, the exchange’s mutual fund platform, reported 100% year-on-year revenue growth, reaching ₹58.7 crore in Q2 FY25. The platform processed 16.28 crore transactions, reflecting a 68% increase from 9.67 crore transactions in the corresponding period of the previous year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Nifty Bank Sees Highest Single-Day Range of Over 1,000 Points on Budget Day 2025

The Nifty Bank Index, comprising the most liquid and large Indian banking stocks, is a crucial benchmark for assessing the capital market performance of Indian banks. The index consists of a maximum of 12 companies listed on the National Stock Exchange (NSE).

On Budget Day 2025, the Nifty Bank experienced exceptional volatility, trading within a range exceeding 1,000 points, calculated as the difference between the highest and lowest levels of the day. This marks the widest single-day range since January 21, 2025, reflecting the heightened market activity on this pivotal economic announcement day.

Market Snapshot: Nifty Bank Movement on Budget Day

As of 3:12 PM on February 1, 2025, the Nifty Bank was marginally lower by 0.11%. Among the 12 constituents, only four stocks were in the green, while the remaining eight traded in the red.

  • Top contributors: Axis Bank and ICICI Bank led the gains, helping cushion the index from a steeper decline.
  • Major laggards: HDFC Bank and SBI exerted the most downward pressure, dragging the index lower.

Yearly Performance and Valuation Metrics

The Nifty Bank ended CY 2024 with a 5.32% gain. However, in CY 2025 so far (as of February 1, 2025), the index has seen a decline of 2.69%, reflecting a cautious start to the year.

A crucial valuation metric for banking stocks, the price-to-book (P/B) ratio, stood at 2.2 as of January 31, 2025. This level is near the lower end of its 1, 3, and 6-month range, as well as close to the bottom of its 1 and 2-year range, suggesting a relatively moderate valuation environment for banking stocks.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Fertiliser Stocks Surge as Budget 2025 Focuses on Agriculture Growth

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, introduced several key measures aimed at boosting the agriculture sector. The government’s focus on improving irrigation, promoting crop diversification, and enhancing farmer income has generated positive sentiment in the fertiliser industry. Following these announcements, shares of fertiliser companies witnessed a notable rise, reflecting investor optimism about increased demand and sectoral growth.

Agriculture Reforms Drive Fertiliser Stock Gains

One of the significant highlights of the budget was its emphasis on strengthening rural infrastructure and improving agricultural productivity. As farmers represent the primary consumer base for fertilisers, policies aimed at increasing their income and efficiency directly impact the fertiliser sector. Following the budget announcement, shares of several fertiliser companies surged by up to 4%, reflecting market confidence in the government’s vision for rural development. 

The stock of National Fertilizer went as high as ₹113.35 per share(or 3.72%)and, Chamal Fertilizers touched an intraday high of ₹513.85(or 1.93%). While Gujarat State Fertilizers went up to ₹211.99 per share(or 3.37%).

Additionally, the budget outlined multiple initiatives to uplift the rural economy, which is expected to drive higher fertiliser consumption. The proposed improvements in irrigation facilities and sustainable farming practices are likely to boost overall agricultural output, increasing the demand for fertilisers in the long term.

New Urea Plant to Strengthen Domestic Production

A major step announced in the budget was the establishment of a large-scale urea production plant in Assam, with an annual capacity of 12.7 lakh metric tonnes. This initiative aligns with the government’s long-term goal of reducing dependence on fertiliser imports while ensuring adequate domestic supply. Increased local production is expected to stabilise prices, improve availability for farmers, and strengthen the overall fertiliser industry.

Furthermore, the government’s continued emphasis on self-sufficiency in fertiliser production reinforces its commitment to supporting both the agricultural and manufacturing sectors. The setting up of new plants and expansion of existing facilities are likely to provide additional economic benefits, including employment generation and regional industrial development.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.