SBI Mutual Funds Launches First Overseas Fund

The State Bank of India (SBI) Mutual Funds has launched its first overseas offering on 1 March 2021. The fund titled SBI International Access — US Equity FOF is an open-ended fund of funds scheme investing in a mutual fund scheme/ETFs that invest in US markets, which are domiciled overseas. The scheme will invest 95-100 per cent of its net assets generally in Amundi Funds – US Pioneer Fund (including ETFs), which invest predominantly in the US markets.

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The main features of the scheme include:

International diversification: Provides international diversification to the portfolio and provides investors with the opportunity to invest in themes not available in the Indian market.
Lower correlation: Aids in mitigating overall risk by investing in a market that has a lower correlation to Indian markets.
Currency depreciation: Provide investors with the opportunity to benefit from any depreciation in the Indian currency against the currency of the underlying fund.

Minimum Investment Amount

The customers interested in the scheme are required to invest at least Rs 5,000 for the first time. However, for additional purchase, the minimum application amount is Rs 1,000.
There is no upper cap for the investment in this fund.

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