Upcoming NFO: SBI Mutual Fund Files Draft for Nifty Midcap 150 ETF

SBI Mutual Fund has filed draft documents for a new Exchange Traded Fund (ETF) that will track the Nifty Midcap 150 Index. The scheme is structured as an open-ended ETF and will follow a passive investment approach, aiming to mirror the index’s returns subject to tracking error.  

The units are proposed to be listed on both the NSE and BSE. Once listed, investors will be able to buy or sell units on trading days through the stock exchanges. The fund will not have an exit load, as liquidity is expected to come from exchange trading.  

Investment Structure 

During the New Fund Offer (NFO), the minimum application amount is set at ₹5,000, with additional investments allowed in multiples of ₹1. Each unit will have a face value of ₹10 and will be issued at a price linked to the underlying index value.  

Large investors and market makers will be able to subscribe or redeem units directly with the fund in creation unit sizes. The creation unit has been fixed at 4,00,000 units.  

Asset Allocation and Approach 

The scheme proposes to invest 95-100% of its assets in stocks that are part of the Nifty Midcap 150 Index. Up to 5% may be held in government securities, treasury bills, triparty repos, or units of liquid mutual funds.  

The ETF will follow a passive strategy and will not take active positions in individual stocks or sectors. The portfolio will be adjusted when the index composition changes or due to corporate actions.  

Costs and Disclosures 

The total expense ratio is estimated at up to 1% annually, with an additional 0.05% allowed under regulatory provisions. The first net asset value is to be announced within five business days after allotment.  

The scheme is new and does not have any past performance data.  

Read More: Gold ETFs with Low Tracking Error - February 2026! 

Conclusion 

The draft outlines a passive mid-cap ETF with exchange-based trading and a minimum NFO investment of ₹5,000. Listing details and offer dates will be announced later.  

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