SBI Mutual Fund has introduced a new investment option for investors looking to participate in the growth potential of midcap companies. The fund house has launched the SBI Nifty Midcap 150 Momentum 50 ETF Fund of Funds (FoF), an open-ended scheme designed to provide exposure to high-momentum midcap stocks without requiring investors to buy shares directly.

The New Fund Offer (NFO) opened for subscription on July 27, 2026, and will remain available until August 5, 2026.

What Is This Fund?

The new scheme follows a Fund of Funds (FoF) structure, meaning it does not invest directly in individual stocks. Instead, it primarily invests in units of the SBI Nifty Midcap 150 Momentum 50 ETF.

The underlying ETF tracks a basket of 50 companies selected from the Nifty Midcap 150 index based on their momentum, which reflects stocks that have shown relatively strong recent price performance.

To manage liquidity, a small portion of the portfolio may also be invested in government securities, treasury bills, and other low-risk money market instruments.

What Is Momentum Investing?

Momentum investing is an investment strategy that focuses on companies whose stock prices have shown strong performance over a recent period. The idea is that stocks demonstrating positive momentum may continue performing well, although there is no guarantee that past performance will continue.

Since momentum strategies can experience periods of higher volatility, they may be more suitable for investors who understand the associated risks.

Investment Starts at ₹5,000

The NFO has been designed to make investing accessible to a wide range of investors.

Key investment details include:

• Minimum lump sum investment: ₹5,000

• Additional investments: In multiples of ₹1

• SIP facility available

Investors can choose from multiple Systematic Investment Plan (SIP) frequencies, including daily, weekly, monthly, quarterly, half-yearly, or annual contributions.

No Demat Account Required

One of the biggest advantages of this Fund of Funds structure is convenience.

Unlike exchange-traded funds (ETFs), which typically require both a demat account and a trading account, investors can purchase this scheme just like a regular mutual fund. This makes it easier for first-time investors who want exposure to an ETF-based strategy without opening additional investment accounts.

Who May Consider This Fund?

This scheme may appeal to investors who:

• Want exposure to India's midcap segment.

• Prefer a momentum-based investment strategy.

• Do not have a demat account.

• Are comfortable with the higher volatility associated with midcap equities.

• Have a medium- to long-term investment horizon.

As with any equity-oriented investment, returns are not guaranteed and the value of investments can fluctuate.

The Bottom Line

The SBI Nifty Midcap 150 Momentum 50 ETF Fund of Funds offers investors a simple way to participate in a momentum-driven midcap strategy without the need for a demat account. With a minimum investment of ₹5,000 and flexible SIP options, the scheme aims to make systematic investing more accessible. However, investors should carefully evaluate their financial goals, risk tolerance, and investment horizon before investing in any mutual fund.