NFO Alert: All you need to know about newly launched SBI NIFTY 1D Rate ETF

livemint.com:

SBI Mutual Fund announced the launch of SBI NIFTY 1D Rate ETF, an open-ended exchange-traded fund replicating/tracking the NIFTY 1D Rate index. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.

The scheme opened for public subscription on October 23, 2023, and will close on October 26, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.

This is an open-ended exchange-traded fund replicating/tracking the NIFTY 1D Rate index. This product is suitable for investors seeking

The investment objective of the scheme is to generate returns, before expenses, that correspond to the returns of the NIFTY 1D Rate index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.

Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Indicative allocations (% of total assets)

Minimum

Maximum

Securities comprising NIFTY 1D Rate Index

95%

100%

Low

Repo/Reverse Repo in Government Securities and any other similar overnight instruments, Units of Liquid and overnight schemes, Debt & Money Market Instruments (with maturity not exceeding 91 days) &, and cash & cash equivalents.

0%

5%

Low 

To date, no asset management company (AMC) has launched any such exchange-traded fund scheme in India.

The performance of the scheme will be benchmarked against the NIFTY 1D Rate index.

This scheme involves no “Entry Load", which means that investors do not have to pay anything to park