SBI ETF: SBI's new Defence ETF opens today; get full details on the NFO, investment amount, and risks..

SBI BSE India Defence ETF: Amid growing interest in investing in the defence sector, SBI Mutual Fund has announced the launch of its new index-tracking fund, the 'SBI BSE India Defence ETF'. Investment in this New Fund Offer (NFO) began today, October 13, 2026, and investors can apply for subscriptions until October 19, 2026.

This is an open-ended Exchange-Traded Fund (ETF) that will primarily track the BSE India Defence Index and aim to provide total returns corresponding to the index, subject to tracking error.

What will the asset allocation look like?

According to the Scheme Information Document issued by SBI Mutual Fund, the fund's asset allocation will be as follows:

95% to 100%: Investment in securities/shares of defence sector companies included in the BSE India Defence Index.

0% to 5%: Investment in government securities, State Development Loans (SDLs), treasury bills, tri-party repos, and liquid mutual fund units.

Investment terms and fund manager

This is a passively managed fund. Instead of actively selecting stocks, the fund manager will invest directly in the index's constituent companies on a proportionate basis. The fund manager for this scheme is Viral Chhadva. He has been associated with SBI Mutual Fund since December 2020 and oversees several passive schemes.

Due to its concentration in a single sector, the fund's risk-o-meter falls into the 'Very High' category. Investors will be directly impacted by the volatility of shares in the defence sector and related companies. NFO Highlights

Parameter    Details
Fund Name    SBI BSE India Defence ETF
Scheme Type    Open-ended Exchange-Traded Fund (ETF)
Underlying Index    BSE India Defence Index
NFO Dates    October 13, 2026, to October 19, 2026
Offer Price    ₹10.00 per unit
Minimum Investment    ₹5,000 (and in multiples of ₹1,000 thereafter)
Fund Manager    Viral Chhadva
Risk Rating    Very High

What is in it for investors?

If you wish to directly benefit from the performance of companies in the defence sector and are looking for a diversified investment across the entire index—rather than taking the risk associated with a single stock—then this ETF could be a suitable option. However, since this is a thematic/sectoral fund, it carries higher risk compared to general diversified equity funds.

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