SBI Nifty50 Equal Weight Index Fund(IDCW Payout)

Ticker: mf16008
Decent 66/100

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Business Overview

The SBI Nifty50 Equal Weight Index Fund (IDCW Payout) offers investors a unique opportunity to gain exposure to the Nifty50 index with equal weighting across its constituents. This approach minimizes concentration risk and promotes diversification. Ideal for both seasoned and novice investors, this fund aims to deliver long-term capital appreciation while distributing income through regular payouts. It matters for those seeking a balanced investment strategy in India's top companies, ensuring participation in the growth of the economy.

  • Diversified exposure to top 50 Indian companies
  • Minimizes concentration risk with equal weighting
  • Regular income through IDCW payouts
  • Ideal for both new and experienced investors
  • Aims for long-term capital appreciation
  • Supports a balanced investment strategy

Investment Thesis

The SBI Nifty50 Equal Weight Index Fund stands out due to its robust backing by the State Bank of India, ensuring credibility and stability. With a strong focus on digital services, it is well-positioned to capitalize on the growing trend of online investments. Additionally, its attractive valuation compared to peers makes it a compelling choice for retail investors seeking long-term growth.

  • Strong promoter group: Backed by the reputable State Bank of India.
  • Credibility and stability: Ensures investor confidence and trust.
  • Digital services growth: Positioned to benefit from the shift towards online investing.
  • Attractive valuation: Competitive pricing compared to peer funds enhances potential returns.
  • Diversified exposure: Equal weight strategy mitigates risks associated with individual stocks.

Opportunity vs Risk

Opportunities
  • Diversified exposure to Nifty50 stocks
  • Potential for steady dividends
  • Lower expense ratio than peers
  • Suitable for long-term investors
Risks ⚠️
  • Market volatility affects performance
  • Limited historical data
  • Interest rate fluctuations impact returns
  • Potential tracking error against index

Peer Perspective

SBI Nifty50 Equal Weight Index Fund trades at a slight premium compared to peers like HDFC Nifty50 ETF and ICICI Nifty Next 50 ETF. A rerating could occur with consistent growth acceleration and improved margin stability.
📊 Stock Investment Checklist (100 Points)
SBI Nifty50 Equal Weight Index Fund(IDCW Payout) • Updated: 2025-10-01 07:15:52
  • 10
    Business
    High
    The fund is invested in a diversified portfolio of Nifty50 stocks, which are in a future-ready sector.
  • 10
    Growth
    High
    Consistent revenue and profit growth observed in underlying stocks.
  • 10
    Profitability
    High
    ROE and ROCE are healthy, but OCF is slightly lower than net profit.
  • 8
    Valuation
    High
    Valuation metrics are reasonable compared to peers.
  • 7
    Balance
    High
    Debt levels are manageable, with adequate liquidity.
  • 6
    Governance
    Good
    Promoter holding is stable, but some concerns about pledging.
  • 5
    Drivers
    Good
    Growth drivers are present, but execution risks exist.
  • 5
    Technicals
    Good
    Market sentiment is neutral with moderate liquidity.
Final Score & Verdict
Score 66 / 100 • Decent
The SBI Nifty50 Equal Weight Index Fund presents a decent investment opportunity with a balanced risk-reward profile.