NFO Alert: SBI Mutual Fund Launches SBI Nifty Midcap 150 Momentum 50 ETF FoF

SBI Mutual Fund has opened the New Fund Offer (NFO) of the SBI Nifty Midcap 150 Momentum 50 ETF Fund of Fund (FoF), an open-ended scheme that invests mainly in units of the SBI Nifty Midcap 150 Momentum 50 ETF.  

The subscription window began on July 27, 2026, and will remain open until August 5, 2026. The scheme provides investors access to a momentum-based mid-cap portfolio through a fund of fund structure rather than direct stock holdings. 

Asset Allocation Plan 

According to the scheme information, 95% to 100% of the corpus will be invested in units of the underlying ETF. The balance of up to 5% may be invested in government securities, including G-Secs, State Development Loans (SDLs), treasury bills, triparty repo instruments and liquid mutual fund units.  

This allocation is intended to meet liquidity and operational requirements. 

Index Followed by the Scheme 

The underlying ETF tracks the Nifty Midcap 150 Momentum 50 Index, which consists of 50 companies selected from the Nifty Midcap 150 universe using momentum as the selection factor.  

The methodology gives preference to stocks that have recorded relatively stronger price performance over a defined period.  

The fund aims to deliver returns in line with the underlying ETF, although the fund house has stated that there is no assurance that the investment objective will be achieved. 

Investment and Fund Management 

The minimum investment during the NFO period has been fixed at ₹5,000. Additional investments can be made in multiples of ₹1. Investors may also invest through systematic investment plans (SIPs) with daily, weekly, monthly, quarterly, half-yearly and annual options. 

The scheme will be managed by Viral Chhadva, who has been associated with SBI Mutual Fund since December 2020. He currently manages several passive investment schemes offered by the fund house. 

Passive Funds Continue to Expand 

Asset management companies have continued to add exchange-traded funds and index-based mutual fund schemes to their product portfolios.  

The launch of the SBI Nifty Midcap 150 Momentum 50 ETF FoF is part of this broader trend, giving investors another passive investment option linked to a rules-based equity index. 

Read More: Best International Mutual Funds in India for August 2026 Based on 5-Year CAGR: Motilal Oswal S&P 500 Index Fund and More! 

Conclusion 

The NFO will remain open for subscription until August 5. After the offer period closes, the scheme will invest primarily in the SBI Nifty Midcap 150 Momentum 50 ETF in line with its stated investment strategy. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing. 

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