SBI Mutual Funds Filed Draft Papers with SBI Quality Fund: All You Need to Know

SBI Funds Management Limited has submitted draft papers to the Securities and Exchange Board of India (SEBI) to launch a new scheme called SBI Quality Fund. This open-ended scheme follows a quality factor investment theme.

The scheme has selected the Nifty 200 Quality 30 Index TRI as its benchmark because it primarily invests in securities that are part of this index. Therefore, the composition of this benchmark makes it well-suited for comparing the scheme’s performance.

Investment Objective

The scheme aims to achieve long-term capital growth by investing in equity and equity-related instruments of companies selected according to the Quality Factor. However, it does not guarantee or assure the fulfilment of this investment objective.

SBI Quality Fund: Asset Allocation

The scheme will primarily allocate its assets to equity and equity-related instruments identified based on the Quality Factor, with a minimum allocation of 80% and a maximum of 100% of the total assets. Additionally, the scheme may allocate up to 20% of assets to other equity and equity-related instruments, as well as up to 20% to debt securities, including securitised debt, debt derivatives, and money market instruments.

Furthermore, the scheme can invest up to 10% of its assets in units issued by REITs and InvITs, in line with SEBI limits specified from time to time. Investments in mutual fund schemes will be limited to 20% of the net assets of the scheme, following regulations stated in the Seventh Schedule of SEBI (Mutual Funds) Regulations 1996. The scheme may invest in units of mutual funds managed by SBI Mutual Fund or any other mutual fund.

Also Read: Motilal Oswal Files Draft SID for Motilal Oswal BSE Select IPO ETF

Is This Scheme Suitable for You?

SBI Quality Fund is suitable for investors who are looking for:

• Long-term capital appreciation
• An open-ended equity scheme that invests in equity and equity-related instruments selected based on the Quality Factor.

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.