SBI Mutual Fund Launches Midcap Momentum ETF for Trend-Focused Investors

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) runs from February 17 to 24, 2026.

What the ETF Offers

The ETF invests primarily in 50 mid-cap stocks selected from the broader Nifty Midcap 150 index based on their “normalised momentum” scores, which consider 6-month and 12-month returns adjusted for volatility.

• Allocation: 95–100% in index stocks, up to 5% in government securities and liquid instruments.
• Objective: Provide returns that closely correspond to the index, though returns are not guaranteed.

Why Momentum Investing?

Momentum investing focuses on stocks showing strong performance trends, rather than undervalued stocks. This ETF allows investors to:

• Gain transparent, rules-based exposure to mid-cap growth stocks.
• Diversify portfolios through passive investing.
• Potentially benefit from strong market trends, especially in volatile mid-caps.

Minimum Investment and SIP Options

• NFO minimum: ₹5,000 and in multiples of ₹1 thereafter.
• Additional purchases: ₹1,000 and in multiples of ₹1.
• Investments can also be made via daily, weekly, monthly, quarterly, semi-annual, or annual SIPs.

Fund Management

The ETF is managed by Viral Chhadva, who oversees several other passive SBI funds. According to Nand Kishore, MD & CEO, the ETF offers disciplined, transparent access to momentum-driven mid-cap opportunities.

Who Should Consider This ETF?

This ETF may suit investors who:

• Want mid-cap exposure through a passive strategy.
• Believe in momentum investing trends.
• Seek satellite exposure alongside core large-cap or diversified funds.
• Have a long-term horizon (5+ years) and can tolerate market volatility.

Read More: Best 10 Equity Mutual Funds for February 2026 by 5‑Year CAGR.

Conclusion

The SBI Nifty Midcap150 Momentum 50 ETF offers investors an efficient way to invest in mid-cap stocks showing strong performance trends. With a rules-based, transparent approach, it can serve as a valuable addition to a diversified portfolio.

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.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.