The SBI Nifty 500 Index Fund (IDCW Payout) is a mutual fund that aims to replicate the performance of the Nifty 500 Index, providing investors with broad exposure to the Indian equity market. This fund is ideal for individuals seeking long-term capital appreciation with a diversified portfolio. It is designed for both novice and seasoned investors looking to invest in a wide range of companies across various sectors. By investing in this fund, you benefit from professional management and a low-cost structure, making it a smart choice for wealth creation.

Tracks the Nifty 500 Index for broad market exposure
Ideal for long-term investors seeking capital growth
Diversifies investments across various sectors
Managed by SBI, a trusted financial institution
Low-cost structure enhances potential returns

Investment Thesis

The SBI Nifty 500 Index Fund offers a compelling investment opportunity due to its strong backing from the SBI promoter group, a leader in the Indian banking sector. With the ongoing digital services boom, this fund is well-positioned for growth. Additionally, its attractive valuation compared to peers makes it an ideal choice for retail investors seeking long-term gains.

Strong credibility backed by the SBI promoter group, ensuring reliability.
Significant growth potential driven by the expansion of digital services in India.
Attractive valuation compared to peer index funds, enhancing investment appeal.
Diversified exposure to 500 top companies, minimizing risk through broad market representation.
Ideal for retail investors looking for steady returns and long-term capital appreciation.

Opportunity vs Risk

Opportunities

Diversified exposure to Nifty 500
Potential for long-term capital growth
Low expense ratio compared to peers
Suitable for systematic investment plans

Risks ⚠️

Market volatility affects returns
Limited control over individual stocks
Economic downturns may impact performance
Liquidity risk during market stress

Peer Perspective

SBI Nifty 500 Index Fund trades at a slight premium compared to HDFC Nifty 50 Index Fund and ICICI Nifty Next 50 Index Fund; a sustained growth acceleration could trigger a rerating in its valuation.

📊 Stock Investment Checklist (100 Points)

SBI Nifty 500 Index Fund(IDCW Payout) • Updated: 2025-10-01 21:54:18

10

Business
High

The fund is invested in a diversified index, providing exposure to future-ready sectors.
10

Growth
High

Consistent revenue and profit growth observed in underlying index constituents.
10

Profitability
High

Average ROE and ROCE in line with industry standards, positive cash flow.
8

Valuation
High

Valuation metrics are reasonable compared to peers, but some stocks may be overvalued.
7

Balance
High

Generally strong balance sheet with manageable debt levels.
6

Governance
Good

Promoter holding is stable, but some concerns over transparency.
5

Drivers
Good

Growth drivers are present, but execution risks remain.
5

Technicals
Good

Market sentiment is mixed, with moderate liquidity.

Final Score & Verdict

Score 66 / 100 • Decent

The SBI Nifty 500 Index Fund presents a decent investment opportunity with a diversified portfolio and consistent growth potential, though some risks and valuation concerns exist.