SBI Nifty IT Index Fund(IDCW Payout)

Ticker: mf17522
Decent 48/100

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Business Overview

The SBI Nifty IT Index Fund (IDCW Payout) is a passive investment option that aims to replicate the performance of the Nifty IT Index, which includes leading companies in the Indian IT sector. Ideal for investors seeking exposure to technology stocks, this fund offers a diversified portfolio with lower costs. It matters because the IT sector is a significant driver of India's economic growth, providing potential for capital appreciation. With regular payouts, it suits both growth-oriented and income-seeking investors.

  • Passive investment in India's top IT companies
  • Diversified exposure to the technology sector
  • Ideal for long-term growth and income
  • Lower expense ratio compared to actively managed funds
  • Regular payouts for consistent income
  • Backed by SBI's trusted financial expertise

Investment Thesis

The SBI Nifty IT Index Fund offers a compelling investment opportunity driven by a strong promoter group with a solid reputation, significant growth potential in digital services, and attractive valuations compared to its peers. This fund is well-positioned to capitalize on the booming IT sector in India.

  • Backed by SBI, a trusted financial institution with a strong track record.
  • Exposure to the rapidly growing digital services sector, ensuring long-term growth.
  • Valuations are competitive compared to other IT-focused funds, enhancing potential returns.
  • Diversified portfolio across leading IT companies, reducing risk.
  • Ideal for investors seeking stable income through IDCW payouts.

Opportunity vs Risk

Opportunities
  • Growing IT sector in India
  • Increased digital adoption
  • Strong historical performance
  • Diversification through index fund
Risks ⚠️
  • Market volatility impact
  • Sector-specific downturns
  • Regulatory changes
  • High competition in IT
📊 Stock Investment Checklist (100 Points)
SBI Nifty IT Index Fund(IDCW Payout) • Updated: 2025-10-01 15:31:24
  • 10
    Business
    High
    The IT sector is future-ready with a strong growth trajectory, but the fund's specific model lacks a clear moat.
  • 10
    Growth
    High
    Consistent revenue and profit growth observed in the IT sector, but fund performance may vary.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but OCF vs Net Profit shows some volatility.
  • 8
    Valuation
    High
    Valuation metrics like P/E and P/B are in line with peers, but PEG indicates potential overvaluation.
  • 7
    Balance
    High
    The fund has a manageable debt/equity ratio and adequate liquidity.
  • 6
    Governance
    Good
    Promoter holding is stable, but there are concerns about pledging.
  • 5
    Drivers
    Good
    Growth drivers are present, but execution risks remain a concern.
  • 5
    Technicals
    Good
    Market sentiment is neutral with moderate liquidity.
Final Score & Verdict
Score 48 / 100 • Decent
The SBI Nifty IT Index Fund shows potential for growth in a robust sector, but risks related to execution and valuation should be considered.