The SBI BSE Sensex ETF is an open-ended exchange-traded fund managed by SBI Mutual Fund. It aims to replicate the performance of the S&P BSE Sensex index by investing in the same stocks and proportions as the index.
Key Details:
- Launch Date: March 8, 2013
- Fund Manager: Raviprakash Sharma (since February 9, 2013)
- Expense Ratio: 0.042% (as of December 31, 2024)
- Assets Under Management (AUM): ₹120,613.58 crore (as of September 30, 2024)
- Net Asset Value (NAV): ₹852.77 (as of January 6, 2025)
- Minimum Investment: ₹5,000
- Exit Load: None
Performance:
The fund has delivered the following returns:
- 1-Year: 12.26%
- 3-Year: 11.53%
- 5-Year: 15.09%
- Since Inception: 14.42%
Portfolio Composition:
As of January 31, 2025, the fund’s investments include:
- Equity: 99.92%
- Cash & Cash Equivalents: 0.08%
Tax Implications:
- Short-term Capital Gains (STCG): Gains are taxed at 15% if units are redeemed within one year.
- Long-term Capital Gains (LTCG): Gains exceeding ₹1 lakh after one year are taxed at 10%.
- Dividends: Added to the investor’s income and taxed as per their respective tax slabs.
Risk Assessment:
The fund is categorized under the “Very High” risk category, indicating significant potential for both returns and losses.
Expert Opinion:
Financial analysts often regard the SBI BSE Sensex ETF as a cost-effective vehicle for investors seeking exposure to India’s top 30 companies, as represented by the Sensex. Its low expense ratio and close tracking of the index make it a suitable option for passive investors. However, potential investors should be aware of the inherent volatility associated with equity markets and assess their risk tolerance accordingly.
Conclusion:
The SBI BSE Sensex ETF offers investors a straightforward method to gain exposure to the S&P BSE Sensex. While it has demonstrated consistent returns over various time horizons, aligning with the index’s performance, investors should consider their individual financial goals and risk appetite before investing.
SBI Sensex ETF Portfolio
The SBI S&P BSE Sensex ETF is designed to replicate the performance of the S&P BSE Sensex index by investing in the same stocks and proportions as the index.
Top Holdings (as of June 30, 2023):
| Company | Allocation (%) |
| Reliance Industries | 13.24% |
| HDFC Bank | 10.05% |
| ICICI Bank | 8.23% |
| Infosys | 7.68% |
| Tata Consultancy | 4.85% |
This ETF comprises 30 stocks, reflecting the composition of the S&P BSE Sensex index. The fund maintains a low portfolio turnover ratio of 11.00%, indicating a buy-and-hold strategy with less frequent trading compared to the category average of 20.19%.
Investors should note that the fund has a “Very High” risk rating, suggesting significant potential for both returns and losses.
SBI BSE Sensex ETF Returns and Direct-Growth
The SBI BSE Sensex ETF is an exchange-traded fund managed by SBI Mutual Fund, designed to replicate the performance of the S&P BSE Sensex index by investing in the same stocks and proportions as the index.
Performance Overview:
As of February 17, 2025, the fund’s performance is as follows:
| Time Period | Returns (%) |
| 1-Year | 6.93% |
| 3-Years | 11.75% |
| 5-Years | 14.27% |
| Since Launch | 13.88% |
Direct Growth Plan:
The SBI BSE Sensex ETF operates as a passive fund, aiming to closely track the S&P BSE Sensex index. As such, it does not offer separate plans like ‘Direct’ or ‘Regular’ typically found in mutual funds. Investors can purchase units of this ETF directly through stock exchanges during trading hours.
Net Asset Value (NAV):
The NAV of the fund fluctuates daily based on the market value of the underlying securities. As of February 17, 2025, the NAV is ₹832.37.
Investment Considerations:
Investors should be aware that the SBI BSE Sensex ETF is categorized under the ‘Very High’ risk category, indicating significant potential for both returns and losses. It’s essential to assess your risk tolerance and investment horizon before investing in this ETF.
Strengths of SBI BSE Sensex ETF
1) Low Expense Ratio – The fund has a very low expense ratio (around 0.05%), making it a cost-effective way to invest in the S&P BSE Sensex.
2) Diversification – By tracking the Sensex, it provides exposure to 30 of the largest and most established companies in India across various sectors.
3) Market-Linked Returns – The ETF closely follows the Sensex, ensuring that investors get returns similar to the overall market performance.
4) High Liquidity – Being an ETF, it can be traded easily on the stock exchange during market hours, unlike traditional mutual funds.
5) Transparency – The portfolio composition is publicly available and follows the index exactly, making it easy for investors to track holdings.
6) No Fund Manager Bias – Since it is a passive fund, there is no active fund management, reducing the risk of poor investment decisions.
Risks of SBI BSE Sensex ETF
1) Market Risk – The ETF directly follows the Sensex, so it is subject to market fluctuations. If the Sensex falls, the ETF value will drop.
2) Sector Concentration – Since the Sensex is dominated by sectors like Banking, IT, and Oil & Gas, any downturn in these sectors can significantly impact the ETF.
3) Tracking Error – While it aims to replicate the Sensex, minor deviations due to expenses and cash holdings can lead to slight underperformance.
4) No Downside Protection – Unlike actively managed funds, this ETF does not protect against market downturns, as it passively follows the index.
5) Dividend Yield Risk – Investors do not receive direct dividends; instead, they benefit from capital appreciation.
6) Liquidity Issues in Extreme Conditions – Although generally liquid, in times of high market volatility, buying/selling large quantities may affect pricing.
Conclusion
The SBI BSE Sensex ETF is a great choice for investors looking for a low-cost, passive investment that mirrors the Sensex. However, it is best suited for those with a long-term horizon and a high-risk appetite, as short-term volatility can impact returns.
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