The New Fund Offer (NFO) opens on June 23 and closes on July 3, 2025.
The fund will invest in 30 high-momentum stocks selected from the Nifty200 universe. These stocks include both large- and mid-cap companies and are chosen based on their normalised momentum scores, which factor in 6-month and 12-month price returns adjusted for volatility.
The index limits stock weights using a combination of momentum scores and free-float market capitalisation. No individual stock can exceed 5% of the portfolio or five times its weight in the parent index.
The fund aims to deliver returns in line with the index, subject to tracking error. However, it does not guarantee achievement of investment objectives.
SBI Funds Management will allocate 95–100% of assets to the underlying index and up to 5% to government securities, triparty repos, or liquid fund units. The minimum investment amount during the NFO is ₹5,000, with additional purchases allowed in multiples of ₹1.
Systematic Investment Plans (SIPs) are available on daily, weekly, monthly, quarterly, semi-annual, and annual frequencies.
The fund will be managed by Mr. Viral Chhadva, who currently oversees several passive offerings, including the SBI Nifty50 Equal Weight ETF and SBI Nifty500 Index Fund.
Commenting on the launch, Nand Kishore, MD & CEO of SBI Funds Management, said the fund offers investors access to a momentum-driven strategy designed to enhance return potential in a diversified portfolio.
D P Singh, Deputy MD & Joint CEO, said momentum investing seeks to capitalise on persistent trends and can complement traditional investment styles.
SBI Mutual Fund is the country’s largest fund house with assets under management of over ₹11 lakh crore as of May 31, 2025.
The product is benchmarked to an index developed by NSE Indices and includes all standard disclaimers related to index licensing. Investors are advised to read all scheme-related documents carefully before investing.
First Published: Jun 23, 2025 11:31 AM IST
