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Home / Mutual Funds / News /  SBI Mutual Fund launches Nifty Midcap 150 and Nifty Smallcap 250 Index Funds

SBI Mutual Fund launches Nifty Midcap 150 and Nifty Smallcap 250 Index Funds

Mid and Small cap Index Funds provide a gateway to investors looking to tap the growth potential of these emerging businesses as they move up the market capitalisation curve. (Photo: iStock)

The new fund offers will be open from 21 September to 26 September. The schemes will be managed by Harsh Sethi, who also manages other exchange-traded funds at the fund house.

NEW DELHI: SBI Mutual Fund has announced the launch of a Nifty Midcap 150 Index Fund and a Nifty Smallcap 250 Index Fund. The two funds will replicate the performance of their respective underlying indices. The new fund offers (NFO) open on 21 September and close on 26 September.

NEW DELHI: SBI Mutual Fund has announced the launch of a Nifty Midcap 150 Index Fund and a Nifty Smallcap 250 Index Fund. The two funds will replicate the performance of their respective underlying indices. The new fund offers (NFO) open on 21 September and close on 26 September.

The minimum application amount required for both the funds is Rs. 5,000 and in multiples of Rs. 1 thereafter. The schemes will be managed by Harsh Sethi, who also manages other exchange-traded funds at the fund house.

The minimum application amount required for both the funds is Rs. 5,000 and in multiples of Rs. 1 thereafter. The schemes will be managed by Harsh Sethi, who also manages other exchange-traded funds at the fund house.

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The Nifty Midcap 150 Index represents the next 150 companies, ranked 101-250, based on full market capitalisation from the Nifty 500 Index. As of 30 August, the top sectors represented in the index were financial services (16.8%), capital goods (14.6%) and oil, gas and consumable fuels (9.2%). The top 3 stocks were Adani Total Gas (5.5%), Bharat Electronics (2%) and Trent (1.7%). Since inception, the index has given total return of 16.7%. The 5-year return (total return, not price return) for the index is 14.9%.

The Nifty Smallcap 250 Index represents the balance 250 companies (companies ranked 251-500) from the Nifty 500 Index. As of August 30, the top sectors in the index were financial services (19.9%), capital goods (14.2%) and chemicals (7.5%). The top 3 stocks were City Union Bank, Elgi Equipments and Central Depository Services (India) with weights of 1.6%, 1.3% and 1.3% respectively. Since inception, the index has given total return of 15.1% The 5-year return (total return, not price return) for the index is 9.7%.

Both the indices are computed using the free float market capitalization method.

“As a fund house, we continue to expand our bouquet of offerings in the passive investment space. Mid and Small cap Index Funds provide a gateway to investors looking to tap into the growth potential of these emerging businesses as they move up the market capitalisation curve from being small caps to mid-caps and eventually large caps," said DP Singh, Deputy MD & Chief Business Officer, SBI Mutual Fund.

Other fund houses such as Motilal Oswal Mutual Fund, ICICI Prudential Mutual Fund and Nippon India Mutual Fund too, have Nifty Midcap 150 Index funds and Nifty Smallcap 250 Index funds.

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