SBI MF launches midcap momentum ETF; here's what investors should know

SBI Nifty Midcap150 Momentum 50 ETF NFO: India’s largest fund house, SBI Mutual Fund, has launched the SBI Nifty Midcap150 Momentum 50 ETF, an open-ended exchange-traded fund (ETF) that tracks the Nifty Midcap 150 Momentum 50 Index. The New Fund Offer (NFO) will remain open till February 24, 2026.

 

The SBI Nifty Midcap150 Momentum 50 ETF is benchmarked against the Nifty Midcap 150 Momentum 50 Index. "The scheme will track the Nifty Midcap 150 Momentum 50 Index and will use a 'passive' or indexing approach to endeavour to achieve the scheme’s investment objective. Unlike other funds, the scheme will not try to 'beat' the market it tracks and does not seek temporary defensive positions when the market declines or appears overvalued," SBI MF said in the scheme information document (SID).

 

 

That said, the risk factor for the scheme as well as the benchmark is very high, according to the SID.

 

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

 

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

 

According to the SID, the exit load remains nil.

 

The SBI Nifty Midcap150 Momentum 50 ETF will be managed by Viral Chhadva.

 

Commenting on the launch, Nand Kishore, MD & CEO, SBI Funds Management, said, "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."

SBI Nifty Midcap150 Momentum 50 ETF: Objective

According to the SID, the investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities 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 SID noted.  ===================================== 

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