SBI Mutual Fund is preparing to launch the SBI Nifty Midcap 150 Momentum 50 ETF FOF, a new fund of funds investing in the SBI Nifty Midcap 150 Momentum 50 ETF. The scheme document had no firm NFO dates at writing, so check SBI Mutual Fund’s channels closer to launch.
SBI Funds Management Limited sponsors this scheme. Unlike the ETF, which trades on exchanges and needs a demat account, this fund of funds works as a regular folio, open to lump sum or SIP.
It gives investors indirect, rules based access to a momentum driven slice of the midcap market, for those who prefer a folio over an exchange order.
SBI Nifty Midcap 150 Momentum 50 ETF FOF NFO details
Fund name | |
Fund type | Open-ended Fund of Fund scheme |
Category | Fund of Funds (Domestic), Equity – Factor (Momentum) |
Nature of scheme | Passive; invests in units of SBI Nifty Midcap 150 Momentum 50 ETF |
Benchmark | Nifty Midcap 150 Momentum 50 TRI |
Fund manager | |
NFO opens | Not available |
NFO closes | Not available |
Allotment | Within 5 business days of NFO closure |
Minimum investment | ₹5,000, multiples of ₹1 thereafter |
Additional investment | ₹1,000, multiples of ₹1 thereafter |
SIP amount | ₹500 for Daily SIP; default frequency is Monthly |
NAV | ₹10 per unit during the NFO |
Riskometer | Very High |
Stamp duty | Not available |
Entry load | Nil |
Exit load | 1% within 15 days of allotment; nil after |
AMC details
AMC name | SBI Funds Management Limited |
Assets under management | Not available |
Website | |
Not available | |
Registered office | 9th Floor & Unit No. 1002-1004, 10th Floor, Crescenzo, C-38 & 39, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai 400051 |
Contact number | 1800 209 3333 / 1800 425 5425 (toll free) |
Source: AMFI India, New fund offer.
What has SBI Mutual Fund launched?
This fund of funds does not buy midcap stocks directly. It invests almost entirely in units of the SBI Nifty Midcap 150 Momentum 50 ETF, tracking the Nifty Midcap 150 Momentum 50 Index, which narrows the 150 stock midcap universe to the 50 names with the strongest recent price momentum.
The scheme is passive at every level. The AMC does not pick stocks or time sectors; it simply follows the index through the ETF it holds.
The practical difference for an investor is access. The ETF needs a demat account and an exchange order. This fund of funds works like a regular mutual fund: invest a lump sum or SIP through your folio, and the fund manager holds the ETF units for you.
How does the SBI Nifty Midcap 150 Momentum 50 ETF FOF strategy work?
Step | What happens? |
1 | You invest a lump sum, or SIP, through a regular folio. |
2 | SBI Mutual Fund pools money from the NFO and after. |
3 | 95% to 100% of assets buy units of the underlying ETF. |
4 | The ETF holds the 50 stocks making up the index. |
5 | The index is periodically reconstituted by momentum score. |
6 | Your fund’s NAV moves with the ETF units held, minus costs. |
7 | Up to 5% stays in government securities or liquid funds. |
8 | On redemption, units are sold and paid at NAV, net of exit load. |
Let’s understand through an example
Say an investor puts ₹10,000 into the fund during the NFO, at ₹10 per unit, buying 1,000 units.
The fund manager pools this with other investors’ money and buys ETF units. The investor never touches the ETF directly or needs a demat account.
Those 1,000 units then move with the ETF units the scheme holds, adjusted for its own expenses. This only explains the mechanics, not an actual or expected return.
Portfolio allocation
Instrument | Allocation |
Units of SBI Nifty Midcap 150 Momentum 50 ETF | 95% to 100% |
Government securities, T-bills, triparty repo, units of liquid mutual funds | Up to 5% |
This is effectively a single asset class scheme at the fund of funds level, with a small cash-like buffer for liquidity.
Investment strategy
There is no stock selection at the fund of funds level; that sits one layer down, inside the ETF, which follows the index rules.
The fund manager’s job is largely mechanical: keep holdings in the ETF near the 95% to 100% band, and manage residual cash for redemptions.
Because this is a fund of funds built on an ETF, investors bear two layers of cost: its own expense ratio sits on top of the ETF’s charges. Regulation caps the combined charge at 0.90% of daily net assets, and at twice the underlying scheme’s weighted average expense ratio.
Potential benefits
Potential benefit | Why does it matter? |
No demat account needed | Access via a normal mutual fund folio, no trading or demat account |
SIP from a small amount | Daily SIP from ₹500, lower entry than buying whole ETF units |
Rules based stock selection | Momentum score picks stocks, removing discretionary calls |
Diversification across 50 names | Spreads exposure across 50 midcap stocks |
Key risks
Risk | What does it mean? |
Market risk | Moves with midcap equities, typically more volatile than large caps |
Tracking difference | Returns can drift from the ETF and index due to cash flows and expenses |
Factor / concentration risk | Momentum strategies can underperform sharply when trends reverse |
Liquidity risk | Redemptions depend on the scheme selling ETF units in time |
Volatility (Very High riskometer) | Scheme and benchmark both rated Very High, reflecting midcap momentum |
Who may consider this fund?
Investors who may consider this fund |
Those who want midcap momentum exposure but prefer SIP or folio over exchange orders |
Those without a demat account, or who would rather not open one just for this |
Those with a high risk tolerance and a horizon of five years or longer |
Those wanting a rules based, factor driven sleeve alongside core equity holdings |
Who may not find it suitable?
Investors who may not find it suitable |
Those with a low risk appetite or a need to protect capital |
Those with a short horizon, under three to five years |
Those who already hold the underlying ETF via demat, and want to avoid a second expense layer |
Those seeking assured or fixed returns |
Comparison with traditional investment options
Feature | Fixed Deposit | Debt Mutual Fund | Hybrid Fund | Equity Mutual Fund | SBI Nifty Midcap 150 Momentum 50 ETF FOF |
Risk | Low | Low-moderate | Moderate | High | Very high |
Return potential | Fixed | Moderate | Moderate-high | High | High |
Volatility | None | Low-moderate | Moderate | High | Very high |
Liquidity | Limited pre-maturity | High | High | High | High, short exit load window |
Investment horizon | Short-medium | Short-medium | Medium | Long | Long |
Suitable investor | Capital protection | Moderate risk, income | Balanced risk | Long term growth | Long term, high risk, folio route |
SBI Nifty Midcap 150 Momentum 50 ETF FOF Review by Zenith Finserve
SBI Nifty Midcap 150 Momentum 50 ETF FOF suits an investor who wants midcap momentum exposure and prefers a folio over exchange orders.
Given the Very High riskometer, this fits better as a satellite allocation than a core holding, with a horizon of five years or longer giving momentum room to work through its cycles.
Investors who can buy the ETF directly should weigh the extra expense layer first. Suitability depends on individual goals and overall asset allocation, worth assessing before investing.
How Zenith Financial Management can help
At Zenith Financial Management, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments. We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Similar NFOs: Zenith’s own coverage
- Axis Nifty50 Equal Weight Index Fund: NFO Details & Review: another passive, factor style index fund, built on equal weighting rather than momentum.
- TRUSTMF Large & Mid Cap Fund NFO: Dates, Details & Review: an actively managed large and mid cap fund, a useful contrast to this scheme’s passive, single-ETF structure.
Frequently asked questions
What is the SBI Nifty Midcap 150 Momentum 50 ETF FOF?
An open-ended fund of funds from SBI Mutual Fund investing in the SBI Nifty Midcap 150 Momentum 50 ETF via a regular folio.
Is SBI Nifty Midcap 150 Momentum 50 ETF FOF NFO good to invest in?
Depends on your risk appetite and horizon. It is a Very High risk scheme. This is not investment advice.
What is the minimum investment in this NFO?
₹5,000 lump sum; SIP starts from ₹500.
Do I need a demat account to invest in this fund?
No, unlike the underlying ETF, this is bought through a regular folio.
What does SBI Nifty Midcap 150 Momentum 50 ETF FOF invest in?
95% to 100% in the underlying ETF, with a small residual in government securities and liquid fund units.
What is the exit load on this fund?
1% if redeemed on or before 15 days from allotment, nil after.
What is the NFO price of this fund?
₹10 per unit during the New Fund Offer.
Who is the fund manager for this scheme?
Mr. Viral Chhadva, managing several SBI Mutual Fund passive schemes since December 2020.
Why does this fund of funds have two layers of expenses?
It invests in an existing ETF, so investors bear its own expense ratio on top of the ETF’s charges, within a SEBI cap.
When does the SBI Nifty Midcap 150 Momentum 50 ETF FOF NFO open?
Dates were not available at the time of writing. Check sbimf.com closer to launch.
