SBI Mutual Fund has filed offer document with Sebi to launch SBI–ETF Nifty Jr., an open-ended Exchange Traded Scheme. The New Fund Offer price is Rs 10 per unit. The Scheme shall be eligible under Section 80CCG of the Income tax Act on ‘Deduction in respect of investment made under an equity savings scheme' to give tax benefits to new investors who invest up to Rs. 50,000 and whose gross total annual income is less than or equal to Rs. 12 lakhs (w.e.f from 01 April 2014 the income ceiling was raised from Rs. 10 lacs to Rs. 12 Lakhs).
Investment objective: The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the underlying index.
Benchmark: CNX Nifty Junior Index
Loads: Nil
Minimum Application Amount: Rs.5,000 and in multiples of Re 1 thereof.
Minimum Target Amount: Rs 10 crore
Asset Allocation: The scheme shall invest 90-100% in securities covered by the underlying Index and up to 10% in money market instrument including CBLO and units of liquid mutual funds.
Fund Manager: Raviprakash Sharma