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Mumbai – In a move to offer investors a more stable and passive investing option in the equity market, SBI Mutual Fund has introduced the SBI Nifty100 Low Volatility 30 Index Fund. The newly launched open-ended index scheme will track the performance of the Nifty100 Low Volatility 30 Index, aiming to deliver returns in line with the index’s total return—subject to minimal tracking error.
The New Fund Offer (NFO) for the scheme is currently open and will continue to accept applications until July 22, 2025.
Focus on Stability with Low Volatility Strategy
The launch of this scheme comes at a time when investors are increasingly seeking stability in equity portfolios, especially within the large-cap segment. The fund is tailored for conservative equity investors who prefer lower-risk exposure while still participating in India’s top 100 companies.
The Nifty100 Low Volatility 30 Index includes 30 stocks selected from the Nifty100 universe based on lowest historical volatility—as measured by the standard deviation of daily returns over the last one year. In this index, stocks are weighted inversely to their volatility, meaning less volatile stocks carry more weight, thus prioritizing defensive equity investing.
Suitable for Risk-Averse Equity Investors
SBI Mutual Fund emphasized that this scheme is suitable for investors who prefer a passive investment approach but want to avoid the swings commonly associated with broader equity indices. The scheme aims to mirror the performance of the underlying index, but without actively picking or timing stocks.
Key Scheme Features:
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Fund Name: SBI Nifty100 Low Volatility 30 Index Fund
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Type: Open-ended equity index fund
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Benchmark Index: Nifty100 Low Volatility 30 TRI
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Fund Manager: Viral Chhadva, who oversees several passive and index strategies at SBI MF
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Investment Objective: To provide returns that closely correspond to the total returns of the Nifty100 Low Volatility 30 Index
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Minimum Investment: ₹5,000 (and multiples of ₹1 thereafter)
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Additional Investment: Minimum ₹1,000
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Asset Allocation:
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95%–100% in securities constituting the index
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Up to 5% in government securities, TREPs, and other permitted instruments
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Systematic Investment Options for Flexibility
The fund also supports Systematic Investment Plans (SIPs), making it convenient for investors to invest gradually and regularly. SIP frequencies include daily, weekly, monthly, or as per the investor’s convenience—an important option for those seeking cost-averaging and long-term wealth creation without timing the market.
Why Low Volatility Investing?
Low volatility investing has gained significant traction globally, especially in uncertain or sideways markets. The low volatility factor focuses on investing in stocks that show less fluctuation in prices—making them more predictable and resilient in turbulent market phases.
“Low volatility strategies tend to perform relatively better during market downturns and periods of uncertainty,” said a spokesperson from SBI Mutual Fund. “This product is ideal for investors who want equity exposure but prefer a defensive strategy that cushions against sharp market corrections.”
By tracking a basket of relatively stable large-cap companies, the fund offers the dual benefit of market participation and reduced downside risk.
Access and Availability
The NFO is available through:
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SBI Mutual Fund’s official website
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Registered mutual fund distributors
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Online investment platforms and aggregators
After the NFO period ends, the scheme will reopen for ongoing subscriptions and redemptions.
Investors are advised to consult their financial advisors to determine if this scheme fits their investment objectives, time horizon, and risk appetite. While the fund aims for lower volatility, it is still subject to market risks, and returns are not guaranteed.
About SBI Mutual Fund
SBI Mutual Fund is one of India’s largest and most trusted asset management companies, managing investments for millions across various fund categories. The launch of this low volatility index fund is part of the AMC’s effort to expand its passive fund offerings and provide diverse solutions tailored to investors’ risk profiles and goals.
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