SBI Nifty 500 Index Fund(IDCW)

The SBI Nifty 500 Index Fund (IDCW) offers investors a straightforward way to gain exposure to the top 500 companies listed on the NSE. Ideal for long-term investors seeking diversification, this fund tracks the Nifty 500 Index, ensuring a balanced portfolio. It matters because it provides an opportunity to invest in a broad spectrum of the Indian economy, minimizing risk through diversification. With low expense ratios and transparent management, this fund is designed to help you grow your wealth steadily over time.

Tracks the Nifty 500 Index for broad market exposure
Ideal for long-term investors seeking diversification
Minimizes risk through investment in top 500 companies
Low expense ratio for cost-effective investing
Managed by SBI, a trusted name in finance
Transparent and straightforward investment approach

Investment Thesis

SBI Nifty 500 Index Fund (IDCW) presents a compelling investment opportunity due to its robust backing by the State Bank of India, a credible promoter. The fund is well-positioned to benefit from the ongoing digital services growth in India, and its attractive valuation compared to peers makes it a prudent choice for long-term investors.

Strong promoter backing from State Bank of India enhances credibility.
Significant growth potential in digital services sector.
Attractive valuation compared to other index funds.
Diversified exposure to top 500 Indian companies.
Ideal for investors seeking long-term capital appreciation.

Opportunity vs Risk

Opportunities

Diversified exposure to Nifty 500
Low expense ratio
Potential for long-term growth
Systematic Investment Plan (SIP) option
Tax benefits under ELSS

Risks ⚠️

Market volatility impacts returns
Limited historical performance data
Economic downturns affect indices
Liquidity risks in downturns
Management fees may reduce gains

📊 Stock Investment Checklist (100 Points)

SBI Nifty 500 Index Fund(IDCW) • Updated: 2025-10-01 21:54:27

10

Business
High

The fund is invested in a diversified portfolio of companies across various sectors, indicating a future-ready approach.
10

Growth
High

The fund has shown consistent revenue and profit growth due to its exposure to large-cap stocks.
10

Profitability
High

The underlying companies generally exhibit strong ROE and OCF, but net profit margins vary.
8

Valuation
High

Valuation metrics like P/E and P/B are in line with peers, indicating fair pricing.
7

Balance
High

The fund's underlying assets have a manageable debt/equity ratio and good liquidity.
6

Governance
Good

Promoter holding is stable, but there are concerns about transparency in some holdings.
5

Drivers
Good

The fund benefits from economic growth but faces execution risks in certain sectors.
5

Technicals
Good

Market sentiment is neutral with moderate liquidity and price action.

Final Score & Verdict

Score 66 / 100 • Decent

The SBI Nifty 500 Index Fund shows a decent score reflecting a balanced approach to growth and stability, making it a reasonable investment option for long-term investors.