Upcoming NFO: SBI Mutual Fund Files Draft for SBI BSE India Defence ETF FOF

SBI Mutual Fund has introduced the SBI BSE India Defence ETF FOF, a new open-ended Fund of Funds scheme. It will invest primarily in the SBI BSE India Defence ETF, rather than directly buying individual defence stocks. The scheme does not have a past performance record.  

Where the Fund Will Invest 

The scheme will put 95% to 100% of its assets into units of the SBI BSE India Defence ETF. The balance, up to 5%, can be kept in government securities, Treasury Bills, Triparty Repo and liquid mutual funds. Funds awaiting deployment can also be parked in these instruments.  

The underlying BSE India Defence index covers companies linked to the defence sector. Stocks from the BSE 1000 universe are considered, with eligible companies divided into Core Defence and Non-Core Defence categories.  

Benchmark and Fund Manager 

The scheme will use the BSE India Defence TRI as its benchmark. Viral Chhadva has been named as the fund manager. He joined SBI Funds Management in December 2020 and has more than 17 years of experience in financial services.  

The first NAV will be calculated within five business days of allotment. After that, NAV will be calculated at the end of each business day and published on the SBI Mutual Fund and AMFI websites.  

Investment and Exit Rules 

The minimum investment during the New Fund Offer (NFO) is ₹5,000, while additional purchases start at ₹1,000. The minimum redemption or switch-out amount is ₹500, one unit or the account balance, whichever is lower. A 1% exit load applies to redemptions within 15 days of allotment.  

The scheme has Regular and Direct plans, with Growth and IDCW options. Units are not proposed to be listed on a stock exchange. Investors can redeem or switch units on business days at the applicable NAV, subject to the applicable exit load.  

Read More: JioBlackRock Flexi Cap Fund Adds Bandhan Bank, PNB and 13 Others; Exits Vedanta, 17 Stocks in July 2026! 

Conclusion 

The scheme will remain largely dependent on the performance of the underlying defence ETF. Its returns can differ from the index because of expenses, cash flows, market prices and tracking differences. 

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.