SBI Mutual Fund launches mid-cap momentum ETF to tap trend-driven investing

An opportunity to invest in 50 'high momentum' stocks, from its parent Nifty Midcap 150 index, selected based on their 'normalised momentum' scores.

India's largest mutual fund house SBI Mutual Fund, on Tuesday launched the SBI Nifty Midcap150 Momentum 50 ETF, an open-ended Exchange Traded Fund that replicates/ tracks the Nifty Midcap 150 Momentum 50 Index. 

 

The New Fund Offer (NFO) period for the scheme is February 17 – 24, 2026.

 

The ETF will track the Nifty Midcap 150 Momentum 50 Index, which selects 50 mid-cap companies from the broader Nifty Midcap 150 universe based on “normalized momentum” scores — calculated using 6-month and 12-month returns adjusted for volatility. The scheme will invest 95–100% of its assets in index constituents, with a small allocation allowed in government securities and liquid instruments. 

 

 

The scheme would primarily invest a minimum of 95% and upto 100% of its assets in stocks comprising the Nifty Midcap 150 Momentum 50 Index and up to 5% in Government securities (like G-Secs, SDLs, and treasury bills), including triparty repo and units of liquid mutual fund. 

 

Momentum investing focuses on companies that are already demonstrating sustained performance trends, rather than attempting to identify undervalued stocks. By offering this strategy in an ETF format, the fund house aims to provide investors with transparent, rules-based exposure to mid-cap growth opportunities while helping diversify portfolios through passive investing. However, as with all index-tracking funds, returns will depend on the performance of the underlying index, and there is no guarantee the investment objective will be achieved. 

 

The minimum application amount during the NFO is ₹ 5,000 and in multiples of ₹ 1 thereafter with additional purchases of ₹ 1,000 and in multiples of ₹ 1 thereafter. 

 

Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIPs (Systematic Investment Plans). 

 

The investment objective of the scheme is to provide returns that, closely 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.

 

 "The SBI Nifty Midcap150 Momentum 50 ETF provides access to momentum driven opportunities within the mid cap segment, enabling investors to strengthen portfolio diversification through a disciplined and transparent approach," said Nand Kishore, MD & CEO, SBI Funds Management.

 

The fund manager for the SBI Nifty Midcap150 Momentum 50 ETF is  Viral Chhadva, who has been associated with the fund house since December 2020. He currently manages passive offerings such as the SBI Nifty50 Equal Weight ETF (an open-ended exchange traded fund replicating/tracking the Nifty 50 Equal Weight Index), the SBI Nifty50 Equal Weight Index Fund (an open-ended scheme replicating/tracking the Nifty 50 Equal Weight Index), the SBI Nifty 500 Index Fund (an open-ended scheme replicating/tracking the Nifty 500 Index), the SBI BSE PSU Bank ETF (an open-ended scheme replicating/tracking the BSE PSU Bank Index), the SBI BSE PSU Bank Index Fund (an open-ended scheme replicating/tracking the BSE PSU Bank Index), the SBI Nifty200 Quality 30 Index Fund (an open-ended scheme replicating/tracking the Nifty200 Quality 30 Index), the SBI Nifty100 Low Volatility 30 Index Fund (an open-ended scheme replicating/tracking the Nifty100 Low Volatility 30 Index), and the SBI Nifty200 Momentum 30 Index Fund (an open-ended scheme replicating/tracking the Nifty200 Momentum 30 Index).

 

 " Momentum strategies aim to identify stocks that exhibit sustained performance trends, and the Nifty Midcap150 Momentum 50 Index applies this approach within the mid-cap segment through a transparent, rules-based process. The SBI Nifty Midcap150 Momentum 50 ETF provides investors with an additional avenue to access this style of investing in an efficient format, helping them diversify their portfolios in line with their individual objectives," said D P Singh, Deputy MD & Joint CEO, SBI Funds Management. 

When this ETF may make sense

 

You could consider this ETF if you:

 

Want exposure to mid-cap stocks but through a rules-based passive strategy

 

Believe in momentum investing, where stocks with strong recent performance may continue to outperform

 

Already have core investments in large-cap or diversified funds and want satellite exposure

 

Have a long-term horizon (5+ years) and can tolerate volatility

 

Momentum strategies often perform well during strong market trends, especially in mid-caps where price movements can be sharper.