SBI MF to launch number of ETFs

Kolkata, May 14 (UNI) SBI Mutual Fund will launch a series of Exchange Traded Funds(ETFs) to be linked with NIFTY, gold, Bank, IT and many other sectoral indices.

SBI Mutual Fund Head of Equity Sanjay Sinha here today said these ETFs would be launched soon.

Exchange Traded Funds are open ended mutual funds, which could be traded anytime throughout the course of the day.

Typically, ETFs try to replicate a stock market indices and market sectors such as energy, technology or commodity such as gold or petroleum.

After introducing the launch of the SBI Infrastructure Fund-Series I today, he said the company was open to the option of investing ten per cent of the net asset of the fund.

SBI MF also plans to invest ten per cent of net asset of close -ended funds in unlisted equity, he added.

According to SEBI guidelines for close ended funds, at least ten per cent of the net asset could be invested in private equities.

'' We will invest in unlisted stocks depending on two broad parameters - one more attractive unlisted stocks than listed ones and if the company realises that the value of the stocks would be high in the next three to four years, '' Mr Sinha said.

SBI Infrastructure Fund opens for subscription on May 11, 2007 and closes on June eight.

This three-year close-ended growth fund would primarily invest in a diversified basket with focus on sectors like port, airport, banksm coal, cement, power, railways, oil and natural gas.

UNI