SBI Nifty Index Fund Direct Growth

SBI Nifty Index Fund is a type of mutual fund that tracks the performance of the benchmark Nifty 50 index. The Nifty 50 is a stock market index in India that represents the performance of the top 50 most valued companies listed on the National Stock Exchange (NSE).

Investors can gain exposure to a diversified portfolio of stocks of the largest and most liquid companies in India, which may help to reduce investment risk. As the fund aims to replicate the performance of the Nifty 50 index, investors can expect returns that closely follow the performance of the index.

The fund is a passively managed fund which means the fund manager does not actively select stocks, keeping the cost of buying and holding the fund quite low compared to actively managed funds.

1. SBI Nifty Index Fund Direct Growth has ₹8752 Cr worth of assets under management (AUM) as on Jan 2025 and is more than category average.
2. The fund has an expense ratio 0.2.
   

SBI Nifty Index Fund Direct Growth has given a CAGR return of 12.27% since inception. Over the last 1, 3 and 5 years the fund has given a CAGR return of 2.52%, 12.61% and 14.69% respectively.

SBI Nifty Index Fund Direct Growth has allocated its funds majorly in Cash Equivalent, Financial Services, Tech, Energy, Consumer Cyclical, Consumer Defensive, Basic Materials, Industrial, Communication, Health, Utilities. Its top holdings are HDFC Bank Ltd, ICICI Bank Ltd, Reliance Industries Ltd, Infosys Ltd, Bharti Airtel Ltd

As it is a index funds mutual fund the taxation is as follows:
For short term (less than a year) capital gains will be taxed at 20%
For long term (more than 1 year) capital gains will be taxed at 12.5% without indexation benefit
Dividends will always be taxed at slab rate. Long term gains upto Rs 1 lakh are exempt capital gains tax.

The scheme will adopt a passive investment strategy. The scheme will invest in stocks comprising the Nifty 50 Index in the same proportion as in the index with the objective of achieving returns equivalent to the Total Returns Index of Nifty 50 Index by minimizing the performance difference between the benchmark index and the scheme. The Total Returns Index is an index that reflects the returns on the index from index gain/loss plus IDCW payments by the constituent stocks.

Minimum investment for lump sum payment is INR 5000.00 and for SIP is INR 500.00. SBI Nifty Index Fund Direct Growth has no lock in period.