Short Description: SBI Mutual Fund launches the SBI Quality Fund NFO, an open-ended equity scheme targeting long-term wealth through investments in high-quality, fundamentally strong companies.
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Main Article:
SBI Mutual Fund has unveiled a new investment opportunity for discerning investors with the launch of the SBI Quality Fund. This open-ended equity scheme, following a disciplined Quality Factor theme, will open for subscription through its New Fund Offer (NFO) from January 28 to February 11, 2024. The fund’s primary objective is to achieve long-term capital appreciation by building a portfolio of companies selected for their robust fundamentals, sound governance, and sustainable business models, aiming for consistent wealth creation across various market cycles.
The scheme mandates that 80-100% of its assets will be invested in equity and equity-related instruments of companies identified by its quality-focused screening process. This active, research-driven approach is designed to offer investors a clear, high-conviction equity option centered on businesses with healthy balance sheets and durable competitive advantages. Managed by Anup Upadhyay, the fund will be benchmarked against the Nifty200 Quality 30 TRI, providing a structured framework for evaluating performance. “The launch of SBI Quality Fund is aligned with our long-standing focus on disciplined investing,” stated Nand Kishore, MD & CEO of SBI Funds Management.
For investors, the SBI Quality Fund presents a strategic avenue to build core equity allocations. The NFO has a minimum application amount of ₹5,000, with subsequent investments starting at ₹1,000. The fund also supports systematic investment plans (SIPs) across various frequencies, facilitating rupee-cost averaging. An exit load of 1% is applicable only for redemptions made within six months of allotment. Deputy MD D P Singh emphasized that the fund is positioned for those seeking to participate in the growth of quality businesses for the long haul, making it suitable for investors with a higher risk appetite aligned with long-term financial goals.
Short Summary:
The SBI Quality Fund NFO offers a focused equity investment strategy centered on the Quality Factor, targeting companies with strong fundamentals for sustainable growth. Open for subscription from Jan 28 to Feb 11, it is designed for investors seeking long-term capital appreciation through a disciplined, research-driven approach to wealth creation. Managed by SBI Mutual Fund, it adds a defined quality-oriented option to an investor’s portfolio.
