Upcoming NFO: SBI Mutual Fund Files Draft with SEBI for Nifty200 Value 30 ETF

SBI Mutual Fund has filed draft documents for the SBI Nifty200 Value 30 ETF, an open-ended exchange traded fund proposed to track the Nifty200 Value 30 Index.  

The scheme is structured as a passive fund and seeks to match the index’s total returns, subject to tracking error. Units are proposed to be listed on the NSE and BSE, subject to regulatory approvals.  

Investment Objective and Asset Mix 

According to the draft, the scheme will invest 95-100% of its assets in securities that are constituents of the Nifty200 Value 30 Index. Up to 5% may be allocated to government securities, treasury bills, triparty repos or units of liquid mutual funds.  

Exposure to equity derivatives for rebalancing or temporary deployment is capped at 5% of net assets. The scheme will not invest in foreign securities, securitised debt, credit default swaps, unrated debt instruments or structured obligations.  

Offer Details and Trading Mechanism 

The new fund offer (NFO) price is set at ₹10 per unit, with a minimum application amount of ₹5,000 during the NFO period.  

Creation unit size is fixed at 15,000 units for large investors and market makers, while investors can trade in minimum lots of one unit on stock exchanges.  

The first net asset value is scheduled to be declared within five business days of allotment, with daily NAV disclosures thereafter.  

Expenses, Tracking and Liquidity 

Annual recurring expenses are estimated at up to 1.00% of daily net assets, excluding additional charges permitted under regulations. Tracking error is expected not to exceed 2% per annum under normal conditions.  

No exit load is proposed, with liquidity intended to be provided through exchange trading. Indicative NAV will be published during market hours.  

Risk and Compliance Notes 

The draft highlights equity market volatility, liquidity risks and the possibility of ETF units trading at a premium or discount to NAV. The scheme will follow SEBI mutual fund regulations and remains subject to exchange listing permissions.  

Read More: Upcoming NFO: Mirae Asset Mutual Fund Files Draft for Silver ETF FOF! 

Conclusion 

The filing outlines a passive ETF linked to value-oriented stocks within the Nifty200 universe, with defined allocation limits, cost disclosures and exchange-based trading, pending regulatory approvals and launch timelines. 

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