NFO: SBI International Access US Equity

By Morningstar |  03-03-21 | 

SBI Mutual Fund has launched its first international fund of fund called SBI International Access – US Equity which will invest in mutual fund schemes/ETFs that invest in U.S. markets, which are domiciled overseas.  The market capitalisation of the U.S. stock market is $40 trillion.

The fund will invest in Amundi Funds – US Pioneer Fund, (domiciled in Luxembourg) that invests predominantly in U.S. market securities. The US Pioneer Fund currently manages assets worth $2.5 billion as of January 2021. The fund invests in equities of high-quality, sustainable companies that are trading below their intrinsic value. The fund also takes into account Environmental Social and Governance aspects while investing.

SBI International Access – US Equity FoF may also invest in other mutual funds/ETFs which are domiciled overseas and invest predominantly in U.S. markets. The scheme will be benchmarked to S&P 500 Index, after converting it to INR. The fund may invest up to 20% of its assets, in securities of non-U.S. companies.

The minimum investment is Rs 5,000. The scheme has an exit load of 1% if investments are redeemed before one year. The fund will be benchmarked against S&P 500 Composite Index.

The new fund offer opened for subscription on March 1 and closes on March 15, 2021.

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