SBI Nifty Midcap 150 Index Fund: August 2026 Portfolio, TER, Tracking Error, Exit Load and Tax

Summary: SBI Nifty Midcap 150 Index Fund is an open-ended passive equity index scheme that seeks returns closely corresponding to the Nifty Midcap 150 Total Return Index, subject to tracking error, without any guarantee of achieving the investment objective. Its stated inception date is 3 October 2022. SBI Mutual Fund’s official factsheet dated 31 August 2026 reported scheme AUM of ₹1,293.91 crore, monthly average AUM of ₹1,262.00 crore, Regular-Growth NAV of ₹20.1258 and Direct-Growth NAV of ₹20.5275. The same dated factsheet disclosed a Very High scheme Riskometer, total expense ratios of 0.88% for Regular Plan and 0.46% for Direct Plan, and one-year tracking errors of 0.0491% and 0.0433%, respectively. The stated minimum initial purchase was ₹5,000, with ₹1,000 additional purchases, and the disclosed exit load was 0.25% on redemption on or before 30 days from allotment, nil thereafter. Its August portfolio included BSE Ltd, Federal Bank, MCX and other index constituents. For tax year 2026-27, qualifying equity-oriented mutual-fund redemptions are generally subject to 20% short-term capital-gains tax or 12.5% long-term tax on eligible aggregate gains exceeding ₹1.25 lakh, subject to the statutory holding period, STT, surcharge and cess rules. The figures in this article are dated August 2026 rather than presented as live October quotations; investors and publishers must check subsequent AMC disclosures for changes.

Scheme Identity, Category and Investment Objective

SBI Nifty Midcap 150 Index Fund is an open-ended index fund within the mutual-fund regulatory framework. Its stated objective is to provide returns that closely correspond to the total returns of securities represented by the underlying index, subject to tracking error. The benchmark is Nifty Midcap 150 TRI, which includes dividends on the index constituents rather than only changes in share prices. The scheme does not promise to beat the index or to deliver positive returns over a specified holding period.

The Nifty Midcap 150 index represents a rules-based segment of listed Indian mid-cap companies. Index constituents and weights change with index-provider rebalancing and corporate actions. The scheme seeks to replicate the relevant index holdings rather than selecting companies primarily through a discretionary stock-picking process. The fund manager still makes operational decisions on cash flows, rebalancing, corporate actions and execution, so exact index matching is not possible.

Investment Strategy and Why Tracking Error Matters

The scheme’s passive mandate is to hold index constituents broadly in index proportions, while retaining operational flexibility permitted by its Scheme Information Document (SID). The portfolio may have small cash or cash-equivalent exposures arising from subscriptions, redemptions, dividends, expenses and pending trades. Index rebalancing, security suspensions, corporate actions, market liquidity, taxes and transaction costs can all create a difference between scheme returns and index returns.

Tracking error is a measure of variability of the difference between a fund’s returns and the benchmark over an observation period. Tracking difference measures the realised gap between the scheme return and the benchmark return over a stated horizon. A small tracking error does not mean that the fund cannot lose money: the benchmark itself can fall substantially. Nor does it mean that a fund’s return is guaranteed to equal the index. These metrics should be read with the methodology and observation date.

August 2026 tracking metrics

The official 31 August 2026 factsheet reported one-year tracking error of 0.0491% for Regular Plan and 0.0433% for Direct Plan. The one-year tracking difference in the ready-reckoner was approximately minus 0.81 percentage points for Regular Plan and minus 0.36 percentage points for Direct Plan. The numbers have different meanings: the first is variability of tracking deviations, while the second is the realised return gap. The scheme’s TER is an important contributor to tracking difference, but cash drag, timing and trading costs can also matter.

August 2026 Portfolio and Concentration

The top holdings reported by the AMC at 31 August 2026 were BSE Ltd (3.14%), Federal Bank (2.05%), Multi Commodity Exchange of India (2.03%), Laurus Labs (1.74%), One 97 Communications (1.69%), Hero MotoCorp (1.66%), Coforge (1.62%), IndusInd Bank (1.57%), PB Fintech (1.52%) and Bharat Heavy Electricals (1.51%). These ten positions represented approximately 18.53% of total AUM in the factsheet. They are not a current recommendation to own any of the underlying stocks.

The portfolio is exposed to mid-cap market risk, sector cycles and liquidity conditions. A 150-company index can diversify single-company exposure but cannot eliminate market-wide losses or sector concentration. Corporate actions, index reconstitution and changes in free-float market capitalisation can alter weights. Therefore, a portfolio table dated 31 August 2026 should not be treated as the composition on 14 October 2026 unless a later official AMC disclosure confirms it.

Total Expense Ratio, Direct/Regular Plans and Exit Load

SBI’s August 2026 factsheet reported total expense ratios of 0.88% for the Regular Plan and 0.46% for the Direct Plan. It separately identified base expense ratios of 0.70% and 0.34%, respectively. The AMC explains that TER includes base expenses plus relevant brokerage, transaction costs and statutory levies; the base expense ratio excludes GST. Investors should not mistake a base expense ratio for the full TER or assume that a dated figure remains unchanged throughout the next month.

Regular and Direct plans participate in the same underlying portfolio but have different expense structures and therefore different NAV histories. Regular-plan distribution expenses can affect the net return. This is a factual distinction, not a recommendation of one plan over the other. The AMC discloses expenses and plan information through its scheme pages and prescribed regulatory channels.

Purchase, SIP and redemption terms

The August factsheet states a minimum initial investment of ₹5,000 in multiples of ₹1 and an additional purchase minimum of ₹1,000. It describes a monthly SIP starting at ₹1,000 for at least six months or ₹500 for at least one year, with other permitted frequencies and conditions. The exit load disclosed is 0.25% if units are redeemed on or before 30 days from allotment and nil thereafter. Each SIP instalment has its own allotment date for determining the load period; exit load is distinct from capital-gains tax and STT.

Dated Historical Performance and Riskometer

For the one-year period ended 31 August 2026, the AMC factsheet showed Regular Plan return of 13.32%, Direct Plan return of 13.77%, and Nifty Midcap 150 TRI return of 14.05%. For the three-year period, the corresponding annualised figures were 16.64%, 17.21% and 17.67%. The factsheet also reported since-inception annualised figures of 19.57% for Regular Plan, 20.18% for Direct Plan and 20.71% for the benchmark. The differences reflect dated historical outcomes, not expected future results.

The scheme Riskometer was Very High as at August 2026. The AMC also disclosed standard deviation of 17.92%, beta of 1.00 and Sharpe ratio of 0.68. These are statistical summaries based on specified historical data and assumptions. A beta near one relative to the benchmark is not a limit on future drawdowns. Returns shown for periods shorter than one year and annualised returns must be interpreted according to the AMC’s methodology; past performance is not an assurance of future performance.

SEBI and AMFI Regulatory Position

The Securities and Exchange Board of India (Mutual Funds) Regulations, 2026 took effect from 1 April 2026. SEBI issued a consolidated Master Circular for Mutual Funds on 20 March 2026, incorporating the 2026 regulatory framework. The scheme is operated within the mutual-fund structure of an asset management company, trustees, custodian and registrar, with mandatory disclosures including SID, KIM, portfolio, NAV, TER and Riskometer. SEBI regulation does not constitute a guarantee of principal or any specific rate of return.

The AMC’s SID and KIM are the legal product documents for investment strategy, permissible assets, investment restrictions, purchase/redemption, risk factors and charges. AMFI is an industry association and publishes relevant scheme and NAV data; it is not a guarantor of the fund. Where the AMC’s dated factsheet and a more recent SID/addendum differ on an operational term, the later applicable disclosure must be checked before acting.

Income-tax Treatment for Tax Year 2026-27

For an equity-oriented mutual fund satisfying the statutory definition and securities transaction tax conditions, units held for not more than 12 months generally give rise to short-term capital gains on redemption, taxed at the special 20% basic rate. Qualifying long-term gains after more than 12 months are generally subject to 12.5% basic tax on aggregate eligible equity gains exceeding ₹1.25 lakh in the tax year, subject to applicable conditions. Surcharge and health and education cess can apply. The threshold is not a separate ₹1.25 lakh exemption for each mutual-fund scheme or each redemption.

An investor must distinguish redemption proceeds, cost of acquisition, eligible grandfathering for old holdings where relevant, exit load and securities transaction tax. Switching from Regular to Direct Plan or from one scheme to another is ordinarily treated as redemption and purchase for tax purposes, even when cash is not paid to the bank account. SIP instalments are separate acquisition lots. IDCW distributions are not tax-free merely because the scheme has equity exposure; distributions are taxable under the applicable provisions and withholding rules.

Capital losses, NRI withholding and return reporting

Eligible short-term capital losses can generally be set off against short-term or long-term capital gains; eligible long-term capital losses can generally be set off only against long-term capital gains. Carry-forward depends on the statutory return-filing conditions and prescribed period. NRI investors may face withholding on redemption or distribution under non-resident rules, and their final tax can differ from the amount withheld. Treaty relief, if claimed, requires appropriate residency and beneficial-entitlement documentation. Investment through NRE/NRO accounts and repatriation is separately governed by FEMA.

For the current tax framework, see TaxGuru’s verified capital-gains overview under the Income-tax Act, 2025; individual transactions must be tested against the enacted law and the current return form.

Accounting and Audit Implications for Business Investors

A corporate investor applying Ind AS generally evaluates mutual-fund units under Ind AS 109, with recognition, subsequent measurement and fair-value changes determined by the instrument’s contractual characteristics and the relevant classification rules. Fair value through profit or loss is common for fund units, but a classification conclusion must follow the applicable standard and facts. Entities applying non-Ind AS accounting should assess AS 13 and related presentation requirements. This article does not prescribe one accounting classification for all investors.

Auditors should reconcile unit statements to the registrar, bank payments and redemptions, NAV used for measurement, realised gains, TDS and STT, and the related-party/financial-instrument disclosures where relevant. Where investments are pledged, subject to lien, held through nominees or included in treasury portfolios, additional control and disclosure questions arise. The fund’s underlying holdings should not be confused with securities directly owned by the investor.

What to Check Before Publishing or Using the Numbers

The official August 2026 factsheet is a historical snapshot. This article deliberately does not describe its AUM, NAV, holdings, TER or performance as live figures on 14 October 2026. Before a transaction or republication, check the latest monthly portfolio, current NAV, TER disclosures, exit-load addenda, SID/KIM updates and SEBI/AMFI notices. The scheme’s category, objective and benchmark are relatively durable, but operational charges, portfolio weights and risk metrics can change.

Frequently Asked Questions

1. What category is SBI Nifty Midcap 150 Index Fund?

It is an open-ended passive equity index scheme tracking Nifty Midcap 150 Index, benchmarked to Nifty Midcap 150 TRI.

2. What was the fund’s AUM on 31 August 2026?

SBI Mutual Fund reported ₹1,293.91 crore AUM and ₹1,262.00 crore monthly average AUM for August 2026.

3. What were the August 2026 TERs?

The AMC reported total expense ratios of 0.88% for Regular Plan and 0.46% for Direct Plan as at the disclosed date.

4. What exit load was disclosed?

The August factsheet stated 0.25% on redemption on or before 30 days from allotment and nil thereafter, subject to current addenda.

5. What was the August 2026 Riskometer?

The scheme Riskometer was Very High. This indicates significant market risk and is not a forecast.

6. What is the capital-gains tax on qualifying equity-fund redemptions in 2026-27?

Generally 20% basic tax for qualifying short-term gains and 12.5% basic tax for qualifying long-term gains above the aggregate ₹1.25 lakh threshold, subject to holding period, STT and other statutory conditions.

7. Can an NRI invest and receive the same net redemption amount as a resident?

NRI investment eligibility and repatriation depend on FEMA and scheme rules; withholding and treaty documentation can change net proceeds.

8. Do historical tracking-error figures guarantee index-matching returns?

No. Tracking error and tracking difference are historical metrics, and expenses, cash flows, rebalancing and market conditions can alter future outcomes.

Key Takeaways

• The scheme is a passive index fund tracking Nifty Midcap 150 TRI, not a guaranteed-return product.
• The official dated AUM was ₹1,293.91 crore at 31 August 2026.
• The August scheme Riskometer was Very High and the disclosed top ten holdings totalled 18.53% of AUM.
• August TER was 0.88% Regular and 0.46% Direct; these are dated disclosures.
• The disclosed exit load was 0.25% on or before 30 days and nil thereafter.
• One-year August 2026 returns were 13.32% Regular, 13.77% Direct and 14.05% benchmark.
• Equity-oriented mutual-fund tax, capital losses, IDCW and NRI withholding require transaction-specific analysis.
• Check newer AMC factsheets, NAV and addenda before using the figures as current.

Source verification: SBI Mutual Fund official Passive Solutions Factsheet as on 31 August 2026 (fund page 30 and ready-reckoner); SBI Nifty Midcap 150 Index Fund Scheme Information Document; SEBI Master Circular for Mutual Funds dated 20 March 2026 and SEBI (Mutual Funds) Regulations, 2026; Income-tax Act, 2025 and Finance Act, 2026 equity-oriented mutual-fund capital-gains provisions. Sources reviewed 14 October 2026; August figures are not represented as October data.

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Disclaimer: This article is for general information and educational publication as at 14 October 2026, using specifically dated official SBI Mutual Fund disclosures from 31 August 2026. It is not a recommendation, ranking, solicitation, forecast, investment advice, tax opinion, legal opinion or instruction to purchase, redeem, switch or choose any plan or option. Mutual funds are subject to market, liquidity, tracking, concentration, operational and other risks; principal and returns are not guaranteed, and past performance does not predict future results. Portfolio, NAV, AUM, TER, riskometer, manager, exit load, tax law and scheme documents may change. Tax treatment depends on the investor, holding period, STT, residency, capital-gains facts and other statutory conditions. Readers must verify the current SID, KIM, SAI, factsheet, AMFI/SEBI disclosures and obtain professional advice. TaxGuru, its proprietor, editors, authors, employees, affiliates and associated persons accept no responsibility or liability for any loss, tax, penalty, cost, error, omission, damage, consequence or decision arising from use of or reliance upon this article.