The New Fund Offer (NFO) for the scheme opened on July 27 and will close on August 5.
The scheme aims to generate returns that closely track the performance of the underlying ETF, although the fund house has stated that there is no guarantee that the investment objective will be achieved.
Under the investment strategy, the fund will allocate 95-100% of its assets to units of the SBI Nifty Midcap 150 Momentum 50 ETF. The remaining allocation of up to 5% may be invested in government securities, including G-Secs, state development loans (SDLs), treasury bills, triparty repo instruments and units of liquid mutual funds.
The underlying index, Nifty Midcap 150 Momentum 50, tracks 50 midcap stocks selected from the Nifty Midcap 150 universe based on momentum factors. Momentum investing typically focuses on stocks that have shown relatively stronger price performance compared with peers.
The minimum investment amount during the NFO period is ₹5,000, with additional investments allowed in multiples of ₹1. The scheme will also offer systematic investment plan (SIP) options across different frequencies, including daily, weekly, monthly, quarterly, half-yearly and annual intervals.
Viral Chhadva has been appointed as the fund manager for the scheme. Chhadva has been associated with SBI Mutual Fund since December 2020 and manages several passive investment offerings at the fund house.
The launch comes amid growing investor interest in passive investment products, including exchange-traded funds (ETFs) and index-based mutual fund schemes, as asset managers expand offerings across market segments and investment themes.
