SBI Mutual Fund launchs new fund offer of SBI Consumption ETF

In a bid to spruce up its exchange traded fund (ETF) bouquet and offer investors with a choice to invest in consumption theme – SBI Mutual Fund has launched the new fund offer of SBI Consumption ETF.

The new fund offer open on June 30, 2021. The scheme is a passively managed fund and will track Nifty India Consumption Index. The scheme aims to generate returns equal to that given by Nifty India Consumption Fund subject to tracking error and taxes. As on May 31, 2021, Nifty India Consumption Index has 30 securities and has delivered total returns of 13.92 percent since inception in July 12, 2011. The index has 56% allocation to consumer good followed by 20.33 percent allocation to automobiles. It also allocates money to shares of companies in telecom, consumer services, healthare, media, textiles and services sector.

The index enjoys rich valuation – the index price to earning ratio stands at 101.

Vinay M. Tonse, MD & CEO, SBI Mutual Fund said, “Investments in ETFs are beneficial for those looking to get exposure to a broad range of asset classes at a lower cost.”

SBI Mutual fund manages 11 ETF so far along with other actively managed schemes investing across asset classes such as equity, bonds and gold. SBI MF also has SBI Consumption Opportunities Fund – an actively managed fund with assets under management of Rs 733 crore and has given 62 percent returns over last one year.

D P Singh, Chief Business Officer, SBI Mutual Fund said, “Consumption has grown consistently over the last few decades and is expected to provide value to investors in the long term as well.”

New Fund Offer will close on July 14, 2021.