#SBIMutualFund #SBIMF #SBINifty200Momentum30IndexFund #NFO #SBINewFund
Targeting High-Momentum Stocks from Large and Mid-Cap Universe
June 24, 2025 | Mumbai: SBI Mutual Fund, the largest asset management company in India, has announced the launch of its latest passive investment offering — the SBI Nifty200 Momentum 30 Index Fund. The open-ended index scheme seeks to mirror the performance of the Nifty200 Momentum 30 Index, offering investors exposure to a momentum-based investment strategy that blends large- and mid-cap equities.
The New Fund Offer (NFO) for the scheme opens for subscription on June 23, 2025, and will remain open until July 3, 2025. Positioned as a passive strategy, the fund is designed to replicate or track the performance of its benchmark index, without actively picking stocks.
Momentum Investing: A Structured Approach
The SBI Nifty200 Momentum 30 Index Fund will invest in 30 high-momentum stocks selected from the broader Nifty200 universe, which includes both large-cap and mid-cap companies. These stocks are identified based on normalized momentum scores, which take into account their 6-month and 12-month price returns, adjusted for volatility. This ensures a risk-adjusted selection process that prioritizes consistent performers in the equity market.
To avoid excessive concentration and ensure diversified exposure, the index applies strict weight capping rules. No single stock in the portfolio can have a weight exceeding 5% or more than five times its weight in the parent index. Weight allocations are based on a blend of the stock’s momentum score and its free-float market capitalization, helping to maintain both balance and liquidity.
Asset Allocation and Investment Details
As per the scheme’s investment mandate, SBI Funds Management will allocate 95% to 100% of the fund’s assets toward the securities constituting the underlying index. The remaining up to 5% can be deployed in government securities, tri-party repos, or units of liquid mutual funds, providing short-term liquidity management without deviating significantly from the index’s core strategy.
Investors can participate in the fund during the NFO period with a minimum investment amount of ₹5,000, with subsequent investments allowed in multiples of ₹1. For long-term investors looking for disciplined investing, the fund also offers Systematic Investment Plan (SIP) options at various intervals — daily, weekly, monthly, quarterly, semi-annual, and annual.
The scheme will be managed by Mr. Viral Chhadva, a seasoned fund manager who is also responsible for several of SBI Mutual Fund’s other passive offerings, including the SBI Nifty50 Equal Weight ETF and the SBI Nifty500 Index Fund.
A Strategic Tool for Diversified Portfolios
The introduction of the Nifty200 Momentum 30 Index Fund is part of a growing trend in the Indian mutual fund industry that caters to investors seeking smart beta strategies. These strategies aim to provide risk-adjusted outperformance over traditional market-cap weighted indices by using alternative weighting and stock selection methodologies.
Commenting on the launch, Mr. Nand Kishore, Managing Director & CEO of SBI Funds Management, said, “This new fund provides investors with a structured and transparent way to access a momentum-based investment strategy. By focusing on stocks that have exhibited consistent price performance, the fund is designed to enhance return potential while maintaining a diversified equity exposure.”
D P Singh, Deputy MD & Joint CEO of the fund house, echoed the sentiment, stating, “Momentum investing is a time-tested strategy globally. It helps to identify stocks that continue to perform well and can complement traditional value or growth investment styles. Our new offering provides an easy entry point into this space through a cost-efficient, passive product.”
SBI MF: Industry Leader in Passive Investments
With assets under management (AUM) exceeding ₹11 lakh crore as of May 31, 2025, SBI Mutual Fund continues to maintain its leadership position in India’s mutual fund industry. The fund house has been steadily expanding its passive fund offerings, catering to the increasing demand from retail and institutional investors for low-cost, rules-based investment products.
The Nifty200 Momentum 30 Index — the benchmark for the new fund — is developed and maintained by NSE Indices, a subsidiary of the National Stock Exchange (NSE). The index includes a curated list of 30 momentum-driven stocks and undergoes regular rebalancing to ensure alignment with the latest market trends.
Investor Considerations
As with all index funds, the SBI Nifty200 Momentum 30 Index Fund does not aim to outperform its benchmark, but rather to closely replicate its performance, subject to a tracking error. It is ideal for investors seeking exposure to momentum strategies without the need to actively manage individual stock selections.
The scheme includes all standard regulatory disclosures and disclaimers related to index licensing and investment risk. Potential investors are strongly encouraged to read the scheme information document (SID), key information memorandum (KIM), and other related materials carefully before investing.
