SBI Mutual Fund launches new ETF; check subscription dates, minimum investment and other details

SBI Mutual Fund has launched a new exchange-traded fund (ETF), SBI Nifty Midcap 150 Momentum 50 ETF, to offer investors exposure to midcap stocks with momentum characteristics.

The New Fund Offer (NFO) of the scheme opened on February 17, 2026 and will close on February 24, 2026. The scheme will reopen for continuous sale and repurchase within five business days from the date of allotment.

NFO Details

Add Zee Business as a Preferred Source

An NFO, or New Fund Offer, is the initial subscription period when an asset management company launches a new mutual fund scheme to raise money from investors. During this period, investors can subscribe to units, usually at a fixed face value such as Rs 10, before the fund starts trading on the stock exchanges.

Investment Objective and Listing

The scheme is an open-ended ETF that seeks to replicate and track the Nifty Midcap 150 Momentum 50 Index, subject to tracking error. Its investment objective is to provide returns that closely correspond to the total returns of the securities represented by the underlying index. However, there is no guarantee or assurance that the objective will be achieved.

The ETF will be listed on the National Stock Exchange of India Limited and BSE Limited. Units can be bought and sold on all trading days on the exchanges in a minimum lot size of one unit and in multiples thereafter.

Pricing and Investment Structure

During the NFO period, units are being offered at Rs 10 per unit. Each unit has a face value of Rs 10 and will be issued at a premium, if any, approximately equal to the difference between the face value and the allotment price. On allotment, the value of each unit will be approximately equal to one-hundredth of the value of the underlying index. Units will not be issued in decimals.

The minimum application amount during the NFO is Rs 5,000 and in multiples of Re 1 thereafter. Investors can also switch into the scheme from existing schemes of SBI Mutual Fund during the NFO period, subject to applicable conditions.

Portfolio Allocation and Strategy

The scheme will invest 95 to 100 per cent of its total assets in securities covered by the Nifty Midcap 150 Momentum 50 Index. Up to 5 per cent may be invested in government securities, including G-Secs, treasury bills, triparty repo and units of liquid mutual funds.

The scheme may also take limited exposure to equity derivatives of index constituents or the index itself for short duration for rebalancing or in case of corporate actions, as permitted under regulations.

The ETF will follow a passive investment strategy and will not attempt to outperform the index. The asset management company will not take active stock calls and will aim to mirror the composition of the underlying index. The portfolio will be rebalanced within seven calendar days in case of changes in index constituents due to periodic review.

The scheme may engage in stock lending up to 20 per cent of its net assets, with maximum exposure to a single intermediary capped at 5 per cent of net assets. The scheme will not engage in short selling.

Benchmark and Fund Management

The benchmark of the scheme is the Nifty Midcap 150 Momentum 50 Total Return Index. The first net asset value (NAV) will be calculated and announced not later than five business days from the date of allotment. Thereafter, the NAV will be disclosed on every business day and updated on the websites of the Association of Mutual Funds in India and SBI Mutual Fund by 11 pm.

The fund manager for the scheme is Viral Chhadva, who will manage it from inception.