NFO Tracker: SBI Mutual Fund launches SBI NIFTY50 Equal Weight ETF

SBI Mutual Fund has announced the launch of SBI NIFTY50 Equal Weight ETF, an open-ended Exchange Traded Fund replicating/tracking NIFTY50 Equal Weight Index, effectively with relatively lower costs as it is a passive offering.

The new fund offer or NFO of the scheme will open for subscription on July 8 and will close on July 12.

The investment objective of the scheme is to provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking errors.


The scheme will primarily invest between 95%-100% of its assets in securities covered by NIFTY50 Equal Weight Index TRI and up to 5% in government securities (G-Secs, SDLs and Treasury Bills) including Triparty Repo, and units of liquid mutual fund.


The minimum application amount is of Rs 5,000 and in multiples of Re 1 thereafter. The units under the scheme will be listed on NSE and BSE and can be bought / sold on all trading days.

The scheme will be managed by Viral Chhadva. The scheme will be benchmarked against NIFTY 50 Equal Weight TRI.

The scheme will allocate 95-100% in securities covered by Nifty50 Equal Weight TRI and 0-5% in government securities including Triparty Repo, and units of liquid mutual fund.

The scheme will track NIFTY50 Equal Weight Index and will use a “passive” or indexing approach to endeavour to achieve scheme’s investment objective. Unlike other funds, the scheme will not try to “beat” the market it track and do not seek temporary defensive positions when market decline or appear overvalued.

The maximum total expense ratio (TER) permissible under Regulation 52 (6) (b) is upto 1%.

The scheme is suitable for investors who are seeking long term capital appreciation and want investment in securities covered by Nifty50 Equal Weight Index.