SBI Nifty50 Equal Weight Index Fund(IDCW)

Ticker: mf16007
Decent 48/100

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Business Overview

The SBI Nifty50 Equal Weight Index Fund (IDCW) is a mutual fund that invests in the Nifty50 Index, ensuring equal allocation to all 50 stocks. This fund is ideal for investors seeking diversification and reduced concentration risk in their portfolios. By equally weighting each stock, it aims to capture the overall market performance while minimizing the impact of individual stock volatility. This makes it a prudent choice for both new and seasoned investors looking to benefit from India's leading companies.

  • Diversified exposure to top 50 Indian companies
  • Reduces concentration risk with equal stock allocation
  • Ideal for long-term wealth creation
  • Suitable for both novice and experienced investors
  • Aims for steady growth in line with market performance

Investment Thesis

The SBI Nifty50 Equal Weight Index Fund (IDCW) presents a compelling investment opportunity due to its backing by a credible promoter group, robust growth in digital services, and attractive valuation compared to its peers. This fund offers a balanced exposure to the Nifty50, making it an ideal choice for retail investors seeking stability and growth.

  • Strong backing from SBI, a trusted and established financial institution.
  • Significant growth potential in digital services, enhancing overall fund performance.
  • Attractive valuation metrics compared to similar index funds, offering better entry points.
  • Equal weight strategy minimizes concentration risk, providing diversified exposure.
  • Ideal for retail investors looking for a stable long-term investment option.

Opportunity vs Risk

Opportunities
  • Diversified exposure to Nifty50 stocks
  • Potential for steady long-term growth
  • Low expense ratio compared to peers
  • Ideal for passive investors
Risks ⚠️
  • Market volatility affecting returns
  • Concentration risk in top holdings
  • Interest rate fluctuations impact
  • Limited historical performance data

Peer Perspective

SBI Nifty50 Equal Weight Index Fund trades at a slight premium compared to peers like HDFC Nifty ETF and ICICI Nifty Next 50 ETF. A rerating could occur with improved margin stability and consistent growth across sectors.
📊 Stock Investment Checklist (100 Points)
SBI Nifty50 Equal Weight Index Fund(IDCW) • Updated: 2025-10-01 07:16:01
  • 10
    Business
    High
    The fund is invested in a diversified portfolio of Nifty50 stocks, which are in future-ready sectors.
  • 10
    Growth
    High
    Consistent revenue and profit growth observed in the underlying companies.
  • 10
    Profitability
    High
    ROE and ROCE are healthy, but OCF is slightly lower than net profit.
  • 8
    Valuation
    High
    Valuation metrics are in line with peers, but some stocks are overvalued.
  • 7
    Balance
    High
    Overall balance sheet strength is good with manageable debt levels.
  • 6
    Governance
    Good
    Promoter holding is stable, but some concerns about disclosures.
  • 5
    Drivers
    Good
    Growth drivers are present, but execution risks remain.
  • 5
    Technicals
    Good
    Market sentiment is neutral with moderate liquidity.
Final Score & Verdict
Score 48 / 100 • Decent
The SBI Nifty50 Equal Weight Index Fund presents a decent investment opportunity with a balanced risk-reward profile, but investors should be cautious of valuation and governance aspects.