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.
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.
Important takeaways for all competitive exams:
- SBI Chairperson: Dinesh Kumar Khara.
- SBI Headquarters: Mumbai.
- SBI Founded: 1 July 1955.
- SBI Mutual Fund MD & CEO: Vinay Tonse.