SBI MF to launch SBI Quality Fund on Jan 28

SBI Mutual Fund has launched the SBI Quality Fund, an open-ended equity scheme based on the quality factor theme. The NFO opens January 28 and closes February 11, 2026, targeting long-term capital appreciation through investments in fundamentally strong companies.

SBI Mutual Fund has introduced a new equity offering, the SBI Quality Fund, an open-ended scheme built around the quality factor investment theme. The New Fund Offer (NFO) will open for subscription on January 28, 2026, and close on February 11, 2026, giving investors a limited window to participate at the launch stage.

The fund aims to deliver long-term capital appreciation by investing predominantly in equity and equity-related instruments of companies identified through quality-based parameters. According to the fund house, the scheme adopts a factor-driven investment strategy, focusing on businesses with strong financial fundamentals, stable earnings, healthy balance sheets, and efficient capital allocation. However, like all market-linked products, the fund does not guarantee the achievement of its investment objective.

Under its asset allocation pattern, the scheme will invest 80% to 100% of its portfolio in equities and equity-related instruments selected using the quality factor framework. This core allocation underscores the fund’s equity-heavy approach. Additionally, the scheme may allocate up to 20% in other equity instruments, up to 20% in debt and money market instruments for liquidity and risk management, and up to 10% in units of Infrastructure Investment Trusts (InvITs), subject to regulatory limits.

The SBI Quality Fund will be managed by Anup Upadhyay, a seasoned fund manager with more than 15 years of experience in Indian equity markets. He currently co-manages key schemes such as the SBI Flexicap Fund and SBI Balanced Advantage Fund, bringing diversified portfolio management experience to this new strategy.

From an investment standpoint, the quality factor approach typically emphasizes companies that demonstrate consistent profitability, low leverage, strong cash flows, and sustainable business models. Such firms are often better positioned to navigate economic cycles, making this theme appealing to investors seeking relatively resilient equity exposure over the long term.

The minimum application amount during the NFO period is set at ₹5,000, with subsequent investments allowed in multiples of Re 1. For additional purchases after the NFO, the minimum investment will be ₹1,000. The scheme will also be accessible through Systematic Investment Plans (SIPs), offering multiple frequency options to encourage disciplined investing.

SBI Mutual Fund stated that the scheme is tailored for investors looking to build long-term wealth through an actively managed equity portfolio centered on quality stocks. By combining a structured factor-based framework with active fund management, the fund seeks to balance growth potential with a focus on financially robust companies.

As with all equity mutual funds, investors should assess their risk appetite, time horizon, and overall asset allocation before investing, given the inherent volatility associated with stock market exposure.