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A Nifty 500 Index Fund is a passively managed equity mutual fund that tracks the Nifty 500 Index, which represents the top 500 companies in India across large-cap, mid-cap, and small-cap segments. The fund invests in all index constituents in the same proportion as the index, aiming to deliver returns similar to the Nifty 500, subject to tracking error.
In essence, a Nifty 500 Index Fund is suitable for investors who:
| Parameter | Details |
|---|---|
| Fund Name | SBI Nifty 500 Index Fund |
| Type | An open-ended scheme replicating/ tracking Nifty 500 Index |
| Launch Date | 30 Sep, 2024 |
| Benchmark | Nifty 500 TRI |
| Fund Manager | Mr. Viral Chhadva |
| Assets Under Management (AUM) | Approx ₹848.4Cr (varies with date) |
| Exit Load | 0.25% if redeemed within 15 days |
| Min. Investment | SIP: ₹ 500 ; Lump sum: ₹ 5,000 |
| Risk Level | Very High (Equity Nifty 500 TRI) |
The investment objective of the scheme is to Provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.
However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.
Benchmark Index: Nifty 500 TRI
This product is suitable for investors who are seeking*
*Investors should consult their financial advisors if in doubt whether the product is suitable for them.
Here are some compelling reasons:
Historically, equity markets tend to grow over the long term. By investing in a broad-market fund like this, you participate in the overall growth of the Indian economy.
Unlike investing in a single sector or company, the SBI Nifty 500 Index Fund spreads your investment over 500 companies, which reduces the impact of poor performance of any one stock
Ideal for disciplined, long-term investing.
You can invest small amounts regularly to benefit from rupee-cost averaging, reducing market timing risk.
Lower expense ratio than actively managed equity funds.
Minimal trading costs since the fund primarily tracks an index.
The fund is benchmarked to the Nifty 500 Index, giving investors confidence that performance is aligned with the overall market.
According to (15 Dec. 2025), the sector allocations are:
HDFC BANK LTD: 7.66
RELIANCE INDUSTRIES LTD: 5.28
ICICI BANK LTD: 4.93
BHARTI AIRTEL LTD: 2.85
INFOSYS LTD: 2.80
LARSEN & TOUBRO LTD: 2.38
ITC LTD: 1.94
STATE BANK OF INDIA: 2.02
AXIS BANK LTD: 1.82
MAHINDRA & MAHINDRA LTD: 1.66
Grand Total: 33.32%
For updated detailed Performance data and key informations as on April 9, 2026
Visit SBI Nifty 500 Index Fund Performance Page
Expense Ratio: Check latest factsheet.
Exit Load: 0.25% if redeemed within 15 days; nil after 15 days.
Taxation:
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Index funds (especially index ones) can face challenges. Here’s a table summarizing common pain points and how this fund or investors might mitigate them:
| Investor Pain Point | How SBI Nifty 500 Index Fund Addresses It |
|---|---|
| High Risk from Single Stocks | Diversified across 500 companies, reducing stock-specific risk. |
| High Fund Management Costs | Passive index fund with lower expense ratio compared to active funds. |
| Uncertainty About Returns | Tracks the Nifty 500 Index, giving returns aligned with the overall market. |
| Difficulty in Timing the Market | SIP facility allows disciplined, regular investing, reducing timing risks. |
| Limited Exposure to Growth Opportunities | Covers large, mid, and small-cap stocks, capturing growth across sectors. |
| Complexity in Portfolio Management | Fully managed by the fund; investor only needs to choose investment amount and frequency. |
No lock-in period is applicable for this fund.
Latest closing NAV as on 16 Oct, 2025 for SBI NIfty Index Fund – Regular Plan – Growth is Rs. 9.7291
SBI Nifty Index Fund is rated as a VERY HIGH. Benchmark Riskometer for this fund is Nifty 500 Index.
The Fund manager for this fund is:
> Mr. Viral Chhadva since September 2024
Expense ratio for Regular scheme is 0.78% as on 30 Sep 2025 and Expense Ratio for Direct Scheme is 0.3% as on 30 Sep 2025
The SBI Nifty 500 Index Fund is an ideal choice for investors seeking broad market exposure, cost-effective investing, and long-term wealth creation. With diversification across 500 top companies, it reduces individual stock risk while providing returns aligned with the Indian equity market. Its passive strategy, low costs, and SIP-friendly structure make it a suitable option for both beginner and seasoned investors looking for steady, disciplined, and growth-oriented investing.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Past performance is not a guarantee of future returns. Before investing, you should consult a qualified financial advisor, consider your risk tolerance, investment horizon, and review the latest scheme documents, factsheet and disclosures from SBI Mutual Fund.
📅 Last Updated on: January 12, 2026
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