NFO Update: SBI Mutual Fund announces launch of SBI Quality Fund

SBI Mutual Fund has announced the launch of SBI Quality Fund, an open-ended equity scheme following the Quality Factor theme.

The New Fund Offer (NFO) of the fund will open for subscription on January 28 and will close on February 11.

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The investment objective of the scheme is to generate long-term capital appreciation by investing in equity and equity related instruments of companies identified based on the Quality Factor.

"The launch of SBI Quality Fund is aligned with our long-standing focus on disciplined investing. The fund seeks to follow a quality-oriented approach by investing in companies with strong fundamentals, sound governance practices, and sustainable business models, with the objective of participating in long-term wealth creation across market cycles,” said Nand Kishore, MD & CEO, SBI Funds Management.

“SBI Quality Fund is positioned for investors looking to build long‑term equity allocations around quality businesses with strong fundamentals and healthy balance sheets. With an active, research‑driven framework, the fund seeks to provide a clearly defined quality‑focused option within investors’ equity portfolios,” said D P Singh, Deputy MD & Joint CEO, SBI Funds Management.

The scheme would primarily invest a minimum of 80% and a maximum of 100% of its assets in equity and equity-related instruments (including REITs) identified based on the Quality Factor with the balance assets as per the following allocation: 0 to 20% in other Equity & Equity-related instruments (including REITs), 0 to 20% in Debt Securities (including securitized debt & debt derivatives) & Money Market Instruments and 0 to 10% in Units issued by InvITs, with the exposure in line with SEBI limits specified from time to time.

The minimum application amount during the NFO is of Rs 5,000 and in multiples of Re 1 thereafter with additional purchases of Rs 1,000 and in multiples of Re 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP (Systematic Investment Plan).

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The fund manager of SBI Quality Fund is Anup Upadhyay and performance will be benchmarked against Nifty200 Quality 30 TRI. An exit load on or before six months from the date of allotment will be 1% whereas for exit after six months from the date of allotment, the exit load will be nil.

The fund is suitable for investors who are seeking long term capital appreciation and want an open ended equity scheme investing in equity and equity related instruments based on the quality factor.