A Simple Guide To Investing In Sbi Nifty 50 Etf

SBI Nifty 50 ETF is a fund that invests in large companies, and it is mandated to invest at least 80% of its assets in large-cap stocks. It is passively managed and aims to replicate the portfolio of its chosen benchmark index. This fund has been in operation for 8 years and 8 months and has delivered 12.76% returns since its inception. As of 18th October 2024, the latest Net Asset Value (NAV) of this fund was ₹261.9706, with a total investment of ₹212885.76 Cr. The fund has a very high-risk rating according to SEBI's Riskometer, and investors are warned not to invest if they need to redeem their investment in under five years.

Where to buy SBI Nifty 50 ETF

SBI Nifty 50 ETF is an exchange-traded fund (ETF) offered by SBI Mutual Fund. ETFs are traded on stock exchanges like the NSE and BSE, so you can buy SBI Nifty 50 ETF on these exchanges. You will need a Demat and trading account to invest in ETFs.

There are several online platforms that can facilitate your investment in SBI Nifty 50 ETF, such as:

• Groww
• Moneycontrol

Groww is India’s No.1 Stock Broker and Trading Platform with more than 1 crore active customers. It provides 100% paperless online free Demat and trading account opening. It also offers technical analysis with advanced charts to aid in decision-making.

Moneycontrol is another platform that offers a seamless experience and a free credit score reward.

SBI Nifty 50 ETF's investment objective

SBI Nifty 50 ETF is an index fund that aims to provide returns that closely correspond to the total returns of the securities represented by the underlying index, subject to tracking errors. This means that the fund aims to replicate the performance of the Nifty 50 index, which comprises 50 large-cap stocks across diverse sectors.

The investment objective of the SBI Nifty 50 ETF is to provide investors with returns that match the performance of the Nifty 50 index as closely as possible. This is achieved by investing in the same stocks that make up the index, in the same proportions. The fund has a very high risk rating, according to SEBI's Riskometer, and investors are warned not to invest if they need to redeem their investment in under five years.

The SBI Nifty 50 ETF is mandated to invest at least 80% of its assets in large-cap stocks, with a focus on passive management. As of 29th February 2024, the fund had invested 99.99% in equity and 0.01% in cash and cash equivalents. The fund has a large proportion of its investments in large-cap stocks (78.61%), with a smaller allocation to mid-cap stocks (5.1%) and no exposure to small-cap stocks.

The expense ratio of the SBI Nifty 50 ETF is 0.04%, which is lower than the category average of 0.51%. This means that the fund may be able to provide higher returns to investors due to the lower fees. The Net Asset Value (NAV) of the fund as of 5th December 2024 was ₹260.8181, and the fund size was ₹201652.48 Cr, making it a significant player in the market.

SBI Nifty 50 ETF's risk level

SBI Nifty 50 ETFs are considered to have a very high risk level. As per SEBI's Riskometer, this fund has a very high risk level. This means that there is a high chance of negative returns on your investment.

The Standard Deviation value, which indicates the volatility of fund returns over the past 3 years, is lower for SBI Nifty 50 ETFs compared to other funds in the same category, suggesting that its performance is more predictable.

The Beta value, which indicates the volatility of fund performance compared to similar funds in the market, is also lower for SBI Nifty 50 ETFs. This implies that the fund gives more predictable performance compared to similar funds in the market.

The Sharpe ratio, which indicates the risk-adjusted return of the fund, is higher for SBI Nifty 50 ETFs. This means that the fund has been able to generate better returns for the amount of risk taken.

The Treynor's ratio, which indicates the excess return generated for each unit of risk taken, is also higher for SBI Nifty 50 ETFs. This again suggests that the fund provides better returns for the amount of risk taken.

Overall, while SBI Nifty 50 ETFs are considered to have a very high risk level, various risk ratios indicate that the fund has a more predictable performance and provides better returns for the amount of risk taken.

SBI Nifty 50 ETF's top holdings

The SBI Nifty 50 ETF is mandated to invest at least 80% of its assets in large-cap stocks. Its top holdings include:

• Tata Consultancy Services
• Power Grid Corporation of India
• Britannia Industries
• Tata Consumer Products
• Reliance Industries Ltd.
• Larsen & Toubro Ltd.
• ICICI Prudential Nifty 50 ETF
• Nippon India ETF Nifty 50 BeES
• MIRAE ASSET NIFTY 50 ETF (NIFTYETF)
• Aditya Birla Sun Life Nifty 50 ETF

SBI Nifty 50 ETF's asset allocation

SBI Nifty 50 ETF is mandated to invest at least 80% of its assets in large-cap stocks. As of 29 February 2024, the fund had invested 99.9% in domestic equities, with 78.61% in large-cap stocks, 5.1% in mid-cap stocks, and 0% in small-cap stocks. The remaining 16.19% was categorised as 'other'.

The fund's portfolio is designed to mimic the Nifty 50 index, meaning it is expected to deliver similar returns. As of 5 December 2024, the fund's Net Asset Value (NAV) was ₹260.8181, with a 0.98% change from the previous day.

SBI Nifty 50 ETF is considered a very high-risk fund, with a 0.04% expense ratio.

Frequently asked questions