SBI AMC Bonus Share: What Investors Should Know About Bonus Issues
Bonus shares are one of the most attractive corporate actions for long-term investors. When an asset management company (AMC) or listed company announces a bonus issue, it rewards existing investors by giving them additional units or shares at no extra cost. For mutual fund investors tracking SBI Mutual Fund and its asset management business, understanding how a bonus issue works can help in making smarter, more informed decisions. In recent times, there has been growing interest around the topic of sbi amc bonus share and how such corporate actions impact mutual fund investors, valuation, and portfolio strategy. Let’s break it down in simple terms. What Is a Bonus Share in the Context of AMC and Mutual Funds? In the stock market, a bonus share is typically issued by companies out of their free reserves, converting part of those reserves into share capital. In the case of mutual funds, a “bonus issue” usually means the fund is issuing additional units to existing unit holders, in...