SBI BSE Sensex Index Fund(IDCW)

The SBI BSE Sensex Index Fund (IDCW) is a mutual fund that aims to replicate the performance of the BSE Sensex, one of India's leading stock market indices. Ideal for investors seeking long-term capital appreciation with a passive investment strategy, this fund offers exposure to the top 30 companies in India. It matters because it provides a diversified investment option while minimizing risks associated with individual stocks. With its low expense ratio and potential for steady returns, it's a suitable choice for both new and seasoned investors looking to grow their wealth.

Tracks the BSE Sensex for reliable performance
Ideal for long-term investors
Offers diversification across top companies
Low expense ratio enhances returns
Suitable for both novice and experienced investors

Investment Thesis

SBI BSE Sensex Index Fund (IDCW) stands out due to its strong promoter credibility, robust digital services growth potential, and attractive valuation compared to peers. This fund offers a diversified exposure to top Indian companies, making it a compelling choice for retail investors seeking stability and growth.

Managed by SBI, a trusted name in Indian banking with a strong track record.
Significant growth in digital services enhances overall fund performance.
Valuation metrics show attractive pricing relative to peer index funds.
Provides exposure to the top-performing stocks in the BSE Sensex.
Ideal for investors seeking long-term capital appreciation with lower risk.

Opportunity vs Risk

Opportunities

Strong historical performance
Diversified exposure to top stocks
Potential for long-term capital growth
Low expense ratio
Tax benefits on long-term gains

Risks ⚠️

Market volatility impacts returns
Economic downturns affect performance
Interest rate fluctuations
Limited liquidity in certain conditions
Regulatory changes may impact returns

Peer Perspective

SBI BSE Sensex Index Fund trades at a slight premium compared to peers like HDFC Index Fund and ICICI Index Fund. A rerating could occur with consistent margin stability and improved growth in underlying index constituents.

📊 Stock Investment Checklist (100 Points)

SBI BSE Sensex Index Fund(IDCW) • Updated: 2025-10-01 07:02:51

10

Business
High

The fund is invested in a diversified portfolio of companies in a future-ready sector, but lacks a clear competitive moat.
10

Growth
High

The fund has shown consistent revenue and profit growth due to its exposure to blue-chip companies.
10

Profitability
High

ROE and ROCE are healthy, but OCF is slightly lower than net profit, indicating some cash flow concerns.
10

Valuation
High

Valuation metrics like P/E and P/B are in line with peers, suggesting fair pricing.
8

Balance
High

The fund has a strong balance sheet with low debt and good liquidity.
7

Governance
High

Promoter holding is stable, but there are concerns regarding pledging.
6

Drivers
Good

Growth drivers are present, but execution risks remain due to market volatility.
4

Technicals
Good

Market sentiment is neutral with moderate liquidity.

Final Score & Verdict

Score 48 / 100 • Decent

The SBI BSE Sensex Index Fund presents a decent investment opportunity with stable growth potential, but investors should be cautious of execution risks and cash flow concerns.