Upcoming NFO: SBI Mutual Fund Filed Draft for SBI Nifty G-Sec 2031 Index Fund

SBI Mutual Fund has filed the draft document for the SBI Nifty G-Sec Jul 2031 Index Fund, an open-ended target maturity index fund. The scheme is to track the Nifty G-Sec Jul 2031 Index and aims to replicate its returns, subject to tracking error.  

The fund follows a passive strategy, meaning it will invest in securities in the same proportion as the index. It does not seek to generate excess returns or take tactical positions.  

Investment Structure 

The scheme will allocate 95-100% of its assets to government securities that are part of the index. The remaining portion, up to 5%, may be invested in debt and money market instruments, including treasury bills and triparty repo.  

Portfolio duration is expected to remain aligned with the index, within permitted deviation limits. Temporary deviations may occur during rebalancing or initial deployment.  

Key Features 

Units will be issued at ₹10 during the New Fund Offer (NFO). The minimum application amount is ₹5,000, with additional investments allowed from ₹1,000.  

The scheme will reopen for ongoing transactions within 5 business days after allotment. It will offer daily liquidity, with redemption proceeds typically processed within 3 working days.  

There is no entry or exit load. Net asset values will be disclosed on each business day, with the first NAV published within 5 days of allotment.  

Risk and Maturity 

The scheme carries relatively low credit risk as it invests in government securities, but it remains exposed to interest rate movements. It is classified under a moderate risk category.  

The maturity date is aligned with the underlying index and is expected to be 31 July 2031. Units will be redeemed automatically at maturity.  

Expenses and Restrictions 

Annual expenses are estimated at up to 1.00% of daily net assets, within regulatory limits. The scheme will not invest in derivatives, foreign securities, or securitised debt instruments.  

Read More: PNB MetLife Unveils Pension Dividend Leaders Index Fund Tracking BSE 500 Dividend Stocks! 

Conclusion 

The draft filing introduces a target maturity index fund linked to government securities with a defined 2031 maturity. The scheme will follow a passive structure aligned with the underlying index. 

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.