SBI Launches New ETF in Market, These Investors May Benefit Up to Crores

SBI has now brought a new ETF to the mutual fund market. This time they have brought SBI Nifty Midcap 150. It has been launched since February 17 this year. The sooner you can invest here, the sooner you can withdraw your profit from there.

SBI Mutual Fund, one of India’s largest wealth management companies, has brought a new exchange-traded fund to the market. Experts believe that the launch of this new ETF is an important step for investors amid the growing interest in the stock market and the trend of low-cost investment.

Loan instead of fixed deposit in SBI

ETF or exchange-traded fund is basically an investment product that can be bought and sold on the stock exchange like shares. It usually follows a specific index—such as Nifty or Sensex. As a result, investors get the benefit of investing in multiple shares at once, the risk is somewhat shared, and the cost is also relatively low.

This new ETF of SBI Mutual Fund is said to track a specific index or theme-based sector. The company claims that this fund has been created with the aim of long-term capital growth. This product can be especially useful for those who do not want to directly select stocks but want to benefit from the overall growth of the market.

According to experts, investment in ETFs has increased rapidly in India in the last few years. Due to low expense ratios, transparency and easy trading, institutional investors as well as retail investors are showing interest in this product. By launching the new ETF, SBI Mutual Fund is looking to strengthen its position in the market by targeting this growing demand.

To invest in this ETF, investors need to have a demat and trading account. Like shares, units can be bought and sold based on the market price. As a result, it is also possible to take advantage of price fluctuations during the day. However, market risk is fully present here—if the index falls, the value of the ETF can also fall.

Financial advisors say ETFs are a viable option for those looking to build wealth over the long term and build a diversified portfolio at low cost. However, it is important to thoroughly understand the fund’s investment strategy, tracking error, liquidity, and risk level before investing.