SBI Mutual Fund has launched two new Exchange-Traded Funds (ETFs) for investors who want to explore specific market segments like value stocks and small-cap companies.
These new fund offers (NFOs) — SBI Nifty200 Value 30 ETF and SBI Nifty Smallcap 250 ETF — opened on May 7 and will remain available for investment until May 18.
The aim of these funds is to give investors a simple way to invest in index-based strategies while targeting high-growth market areas.
New ETFs Offer Focused Investment Options
The SBI Nifty Smallcap 250 ETF will track the Nifty Smallcap 250 Index. This index includes companies ranked from 251 to 500 in the Nifty 500 universe, representing smaller but potentially fast-growing businesses.
On the other hand, the SBI Nifty200 Value 30 ETF will track the Nifty200 Value 30 Index. It selects 30 companies from the Nifty 200 based on value indicators such as earnings-to-price ratio, book value, sales, and dividend yield.
Both segments offer strong growth opportunities, but they also come with higher market ups and downs.
Rising Interest in Passive Investing
Passive investing is becoming more popular in India. By December 2025, assets under management (AUM) in passive funds crossed ₹14.20 lakh crore, growing 31% compared to the previous year. Their share in the mutual fund industry also reached 18%.
The Nifty Smallcap 250 Index has delivered a strong 5-year CAGR return of about 129.82%. Meanwhile, the Nifty200 Value 30 Index recorded around 24.18% CAGR in the past year (as of April 30, 2026).
However, competition in this space is already strong, with fund houses like HDFC, Mirae Asset, and DSP offering similar ETFs.
Market Trends and Investment Risks
The small-cap and value segments are currently in a volatile phase. Small-cap stocks struggled in 2025 due to high valuations
and weak earnings, but the Nifty Smallcap 250 Index has rebounded nearly 20% from its March lows as of May 6, 2026.
Experts believe these segments still offer good opportunities, but careful stock selection is important due to valuation risks and market uncertainty. Value investing has also performed well recently, though it requires patience for long-term gains.
Regulatory Updates and Investor Caution
Market regulator SEBI is also reviewing ETF-related rules. Proposed changes include adjusting price bands and using T-1 settlement calculations to better reflect market movements.
Despite the growth potential, investors should remain cautious. Small-cap stocks are highly volatile and can be affected quickly by market sentiment, liquidity issues,
and economic changes. High valuations and uncertain earnings also add risk, especially during market slowdowns.
SBI Mutual Fund leadership has highlighted the rising demand for passive investing and plans to expand offerings in both value and small-cap categories.
