SBI Mutual Fund Filed Draft For Business Cycle Fund With SEBI

SBI Mutual Fund has submitted a draft scheme information document to SEBI for approval of the SBI Business Cycle Fund. The proposed scheme will operate as an open-ended equity fund investing in Indian equities and equity-related instruments. It will follow a business cycle–based investing approach, adjusting exposure to sectors depending on economic phases.

Scheme Details

The fund is classified under the equity-thematic category. Its main objective is to provide long-term capital appreciation through dynamic allocation across sectors and stocks based on different stages of the business cycle. 

There is no guarantee that the objective will be achieved. The scheme will offer redemption and switch facilities on all business days at the applicable Net Asset Value (NAV).

Benchmark and Disclosure

The performance of the scheme will be compared against the BSE 500 Total Return Index (TRI). The first NAV will be declared within 5 business days from the date of allotment. NAVs will be published daily on the Association of Mutual Funds in India (AMFI) website and on the SBI Mutual Fund website by 11 PM every business day.

Investment Terms

The minimum investment during the New Fund Offer (NFO) will be ₹5,000 and in multiples of ₹1 thereafter. The minimum additional purchase will be ₹1,000, and the minimum redemption amount will be ₹500 or one unit, whichever is lower. The NFO will remain open for a minimum of three working days and may extend up to 15 days. Units will be offered at ₹10 each.

Plans, Options, and Load

The scheme will offer Regular and Direct plans with two options, Growth and IDCW (Income Distribution cum Capital Withdrawal). Under IDCW, investors can choose payout, reinvestment, or transfer. An exit load of 1% will apply if units are redeemed within one year from the date of allotment; no load will apply thereafter.

Additional Information

The scheme may engage in stock lending up to permitted limits but will not undertake short selling. Investor applications will be accepted through SBI Mutual Fund’s official points of acceptance or its website.

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Conclusion

SBI Mutual Fund has filed the draft for SEBI’s review. Once approved, the SBI Business Cycle Fund will be available for subscription during its NFO period. Further details are available on the SBI Mutual Fund website.

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 the related documents carefully before investing.