A New Opportunity to Invest in Value Stocks! SBI
Nifty200 Value 30 ETF FOF
R.
Venkatesh, Founder
GuruRam Financial Services
Pvt Ltd.
Tel. +91- 9677267889
ARN 265132
“Just because this stock is trading at a low
price, should I buy it?” a friend asked.
“Being available at a low price alone is not
enough. We also need to see whether the stock is reasonably valued compared
with the company’s earnings, book value, sales and dividend,” another friend
replied.
Not everyone has the time or expertise to
analyse individual companies. For such investors, the SBI Nifty200
Value 30 ETF FOF offers an investment approach based on predefined
rules for investing in value-oriented stocks.
What Is Value Investing?
The market price of a stock alone does not
necessarily indicate its underlying value. In value investing, companies that
appear to be relatively undervalued when compared with parameters such as
earnings, book value, sales and dividends are identified for investment.
Instead of directly selecting and investing
in individual stocks, this new scheme primarily invests in the SBI
Nifty200 Value 30 ETF. Therefore, it follows a Fund of Funds
structure.
How Are the 30 Companies Selected?
The underlying Nifty200 Value 30
Index selects 30 companies from the Nifty 200 Index based on
value-oriented parameters.
Four key factors are considered:
|
Parameter |
What Does It Indicate? |
|
Earnings /
Price |
The
company’s earnings in relation to its stock price |
|
Book Value
/ Price |
The stock
price in relation to the company’s book value |
|
Sales /
Price |
The
company’s sales in relation to its market value |
|
Dividend
Yield |
The
dividend received in relation to the stock price |
Based on these parameters, companies are
assigned value scores, and the 30 companies with stronger value characteristics
are selected for inclusion in the index.
What Is the Nifty 200?
The Nifty 200 Index consists of companies
representing the large-cap and mid-cap segments of the Indian equity market.
Therefore, the value-oriented index also provides exposure to a combination of
large and mid-sized companies.
The Nifty200 Value 30 Index is rebalanced
twice a year, in June and December. As a result, the composition of the index
can change depending on changes in market conditions and the underlying value
parameters.
Key Details of the New Fund
|
Particulars |
Details |
|
Scheme
Name |
SBI
Nifty200 Value 30 ETF FOF |
|
Scheme
Type |
Open-ended
Fund of Funds |
|
Underlying
Investment |
SBI
Nifty200 Value 30 ETF |
|
NFO
Closing Date |
30
September 2026 |
|
Minimum
Investment |
₹5,000 |
|
Allotment
Date |
7 October
2026 |
|
Reopening
for Subscription/Redemption |
12 October
2026 |
Risks to Keep in Mind
The word “Value” does not mean that the
investment is free from risk. The value of the scheme can decline when the
stock market falls.
There is also a possibility that stocks
identified as undervalued may continue to remain undervalued by the market for
an extended period. In other words, even if a company is considered attractive
from a valuation perspective, its stock price does not necessarily have to rise
immediately.
The value-investing strategy may also
underperform other investment approaches during certain market cycles.
Investors should also consider risks associated with equity markets,
concentration and tracking differences between the underlying ETF and its
benchmark.
Who May Consider This Fund?
Investors who are interested in a
value-oriented investment approach and prefer a rules-based method instead of
selecting individual stocks may consider studying this scheme. It may also be
relevant for investors with a long-term investment horizon who understand the
risks associated with equity investments.
However, investors who already have mutual
funds with significant exposure to large-cap and mid-cap companies should
examine their existing portfolio before adding this fund. The additional
investment could increase exposure to certain companies or segments of the
market.
The Key Point for Investors
The word “Value” alone should not be the
reason for investing in a fund. Investors should consider the scheme’s
expenses, risk level, investment horizon, existing investments and personal
financial goals before making an investment decision.
For
more details & Investments contact..!
Mr. R.
Venkatesh, Founder,
GuruRam Financial
Services Pvt. Ltd.
New No. 14, Old No. 37C, First Floor
Nathamuni Street, T Nagar, Chennai -600017
Tel. +91- 9677267889, 9677025125
Email: gururamforyou@gmail.com
https://www.gururamfinancialservices.com/index.php
ARN 265132
For
mutual fund investments, financial planning, and life & health insurance,
you can confidently approach R. Venkatesh.
Read articles written by Mr. R.
Venkatesh in Nanayam Vikatan, Aval Vikatan and Vikatan.com a leading
personal finance magazine https://www.vikatan.com/author/aar-vengktteess
Disclaimer: Mutual Fund investments are subject to
market risks, read all scheme related documents carefully. The past performance
of the mutual funds is not necessarily indicative of future performance of the
schemes.
