NFO Alert: SBI Mutual Fund Launches SBI BSE India Defence ETF

SBI Mutual Fund will open the new fund offer (NFO) for its SBI BSE India Defence ETF on October 13, 2026. The subscription window will close on October 19, 2026.  

The scheme will track the BSE India Defence Index and follow an open-ended exchange-traded fund structure.The fund aims to track the total returns of the underlying index, subject to tracking error.  

Its actual returns may differ from those of the index due to differences in portfolio performance and tracking error. 

Asset Allocation 

The scheme will invest 95% to 100% of its assets in securities included in the BSE India Defence Index. The allocation will provide exposure to the stocks that form part of the index. 

Up to 5% of the fund's assets may be invested in other instruments. These include government securities (G-Secs), state development loans (SDLs), treasury bills, triparty repo and units of liquid mutual funds. 

Minimum Investment 

The minimum investment during the NFO period is ₹5,000. Additional investments can be made from ₹1,000, with subsequent amounts permitted in multiples of ₹1. 

The scheme will be managed by Viral Chhadva, who has been associated with SBI Mutual Fund since December 2020. He oversees several passive investment offerings at the fund house. 

Investment Approach and Risks 

The ETF will follow the BSE India Defence Index rather than use an actively managed stock-selection strategy. Its portfolio will consist mainly of securities included in the index, with a limited allocation to other permitted instruments. 

Returns will depend on the performance of the underlying securities. Changes in their market prices can affect the fund's value, while tracking error may cause its returns to differ from those of the index. 

Investors will therefore remain exposed to fluctuations in individual stocks and the broader defence sector. The scheme's performance will reflect movements in its underlying portfolio rather than a separate stock-selection strategy. 

Read More: Upcoming NFOs: 8 Mutual Fund Schemes and 2 SIFs Set to Launch This Week (October 12 – October 17, 2026)! 

Conclusion 

The SBI BSE India Defence ETF's NFO will run from October 13 to October 19, 2026. The scheme will invest primarily in constituents of the BSE India Defence Index, with a minimum NFO investment of ₹5,000. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.

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