SBI Mutual Fund’s New Fund Offer (NFO) Nifty 500 Index Fund opened for subscription on September 17.

SBI Nifty 500 fund will have 95% of its investments in equity and the rest in other instruments, including G-Secs. The fund will cover 92.1% of the full market capitalisation of all listed companies in NSE, said SBI MF in a statement. The fund’s objective is to “provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error” according to the statement. The NFO closes on September 24, the company added.

“Investors who seek exposure to not only established large cap companies but also mid and small caps, passively and at a relatively lower cost can consider investing in this fund” said Shamsher Singh, MD & CEO, SBI Funds Management Limited in the statement. SBI MF rated the fund ‘very risky.’