Latest news with #Nifty200Quality30Index
Time of India
21-05-2025
- Business
- Time of India
NFO Monitor: ICICI Prudential Mutual Fund launches Nifty200 Quality 30 Index Fund
ICICI Prudential Mutual Fund announces the launch of the ICICI Prudential Nifty200 Quality 30 Index Fund , an open - ended index scheme replicating Nifty200 Quality 30 Index. This strategy is built on the 'Quality' factor, one of the foundational pillars of factor investing, which emphasises investing in financially sound businesses with strong fundamentals. The new fund offer or NFO of the scheme is open for subscription and will close on June 4. Also Read | NFO Insight: Can Motilal Oswal Services Fund help you gain stability and long-term growth potential? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Factor investing in general targets key performance drivers such as quality, momentum, low volatility, value, and size to optimise returns while managing risk. This new scheme aims to provide investors with access to a curated portfolio of 30 companies from the Nifty 200 universe that scores high on key quality parameters, including return on equity, a low debt-to-equity ratio, and stable earnings growth. 'Through this product, we aim to offer investors a scheme that brings together the core principles of quality investing—resilience, efficiency, and relative stability. This scheme is suitable for those looking to build long-term wealth using a transparent, rule-based approach that has historically performed well during market downturns,' said Abhijit Shah, Chief Marketing and Digital Business Officer at ICICI Prudential AMC. Live Events The exit load is nil. The minimum amount for SIP investment is Rs 1,000 with minimum six installments. The scheme will be benchmarked against Nifty200 Quality 30 TRI. The scheme will be managed by Nishit Patel and Ashwini Shinde. Also Read | 27 equity mutual funds offer over 25% CAGR in both 3 and 5 years. Have you added any to your portfolio? The Scheme provides investors an opportunity to build long-term wealth by owning a portfolio of fundamentally strong companies, particularly at a time when quality stocks are available at reasonable valuations. It follows a passive, rules-based strategy that replicates an index which selects 30 high-quality stocks from the Nifty 200 universe, ensuring transparency and discipline in portfolio construction.
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Business Standard
15-05-2025
- Business
- Business Standard
SBI's new Index Fund targets Top 30 quality stocks - How you can invest
SBI Mutual Fund, India's largest fund house, on Thursday launched the SBI Nifty200 Quality 30 Index Fund, an open-ended scheme replicating/ tracking Nifty200 Quality 30 Index. The New Fund Offer (NFO) period for the scheme is May 16 – 29, 2025. The investment objective of the scheme is to provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved. The Nifty200 Quality 30 index includes top 30 companies from its parent Nifty 200 index, selected based on their 'quality' scores. The quality score for each company is determined based on return on equity (ROE), financial leverage (Debt/Equity Ratio) and earning (EPS) growth variability analysed during the previous 5 years. The weights of the stocks are derived from their Quality scores and square root of free float market cap. The stock weight is capped at 5% The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the Nifty200 Quality 30 and up to 5% in Government securities (like G-Secs, SDLs, and treasury bills), including triparty repo and units of liquid mutual fund. The minimum application amount during the NFO is of Rs. 5,000 and in multiples of Re. 1 thereafter with additional purchases of Rs. 1,000 and in multiples of Re. 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP (Systematic Investment Plan). The Nifty200 Quality 30 Index is designed to track the performance of the top 30 companies within the Nifty200 index, selected based on stringent quality metrics such as financial health, profitability, and sustainable growth. "I believe the SBI Nifty200 Quality 30 Index Fund can be a valuable addition for investors, enabling them to invest in quality companies passively for long-term wealth creation," said Nand Kishore, MD & CEO, SBI Funds Management Limited. The fund manager for the SBI Nifty200 Quality 30 Index Fund is Viral Chhadva, who has been associated with the fund house since December 2020. He currently manages passive offerings such as the SBI Nifty50 Equal Weight ETF (an open-ended Exchange Traded Fund replicating/tracking the Nifty 50 Equal Weight Index), the SBI Nifty50 Equal Weight Index Fund (an open-ended scheme replicating/tracking the Nifty 50 Equal Weight Index), and the SBI Nifty 500 Index Fund (an open-ended scheme replicating/tracking the Nifty 500 Index). 'The Nifty200 Quality 30 Index represents a focused selection of high-quality companies from the broader Nifty200 universe, chosen through rigorous metrics such as financial strength, consistent profitability, and long-term growth potential. With the launch of the SBI Nifty200 Quality 30 Index Fund, we aim to offer investors a smart, relatively low-cost solution to gain exposure to quality businesses and build long-term wealth through a passive approach," said D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited. What Does This Fund Offer? Index-based passive investing: The fund passively mirrors the Nifty200 Quality 30 Index, allowing investors to benefit from the performance of these top-tier companies without trying to beat the market. Low minimum investment: You can start with just ₹5,000 during the New Fund Offer (NFO) period, which runs from May 16 to May 29, 2025. Flexibility: Investors can set up SIPs (Systematic Investment Plans) daily, weekly, monthly, or even annually. No long-term exit load: Withdraw within 15 days and pay a 0.25% exit load. Exit after that, and it's free.
Time of India
15-05-2025
- Business
- Time of India
NFO Alert: SBI Mutual Fund launches Nifty200 Quality 30 Index Fund
SBI Mutual Fund has announced the launch of SBI Nifty200 Quality 30 Index Fund , open-ended scheme replicating/ tracking Nifty200 Quality 30 Index. The new fund offer or NFO of the scheme will open for subscription on May 16 and will close on May 29. Also Read | MF Tracker: Can this smallcap mutual fund add value to your portfolio? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » The investment objective of the scheme is to provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. "The Nifty200 Quality 30 Index is designed to track the performance of the top 30 companies within the Nifty200 index, selected based on stringent quality metrics such as financial health , profitability, and sustainable growth. I believe the SBI Nifty200 Quality 30 Index Fund can be a valuable addition for investors, enabling them to invest in quality companies passively for long-term wealth creation ," said Nand Kishore, MD & CEO, SBI Funds Management. Live Events 'The Nifty200 Quality 30 Index represents a focused selection of high-quality companies from the broader Nifty200 universe, chosen through rigorous metrics such as financial strength, consistent profitability, and long-term growth potential. With the launch of the SBI Nifty200 Quality 30 Index Fund , we aim to offer investors a smart, relatively low-cost solution to gain exposure to quality businesses and build long-term wealth through a passive approach,' said D P Singh, Deputy MD and Joint CEO, SBI Funds Management. The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the Nifty200 Quality 30 and up to 5% in Government securities (like G-Secs, SDLs, and treasury bills), including triparty repo and units of liquid mutual fund. The minimum application amount during the NFO is of Rs 5,000 and in multiples of Re 1 thereafter with additional purchases of Rs 1,000 and in multiples of Re 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP ( Systematic Investment Plan ). Also Read | Nippon India Small Cap Fund exits IndusInd Bank, Adani Wilmar, 3 other stocks in April The fund manager for the SBI Nifty200 Quality 30 Index Fund is Viral Chhadva. NIFTY200 Quality 30 index seeks to combine the stock-specific quality factor used in active investment with the rules-based framework of passive investment. The Nifty200 Quality 30 index includes top 30 companies from its parent Nifty 200 index, selected based on their 'quality' scores. The quality score for each company is determined based on return on equity (ROE), financial leverage (Debt/Equity Ratio) and earning (EPS) growth variability analysed during the previous 5 years. The weights of the stocks are derived from their Quality scores and square root of free float market cap. The stock weight is capped at 5%. ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Economic Times
15-05-2025
- Business
- Economic Times
NFO Alert: SBI Mutual Fund launches Nifty200 Quality 30 Index Fund
The NFO runs from May 16 to May 29, targeting long-term wealth creation. SBI Mutual Fund has announced the launch of SBI Nifty200 Quality 30 Index Fund, open-ended scheme replicating/ tracking Nifty200 Quality 30 Index. The new fund offer or NFO of the scheme will open for subscription on May 16 and will close on May 29. Also Read | MF Tracker: Can this smallcap mutual fund add value to your portfolio? The investment objective of the scheme is to provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. "The Nifty200 Quality 30 Index is designed to track the performance of the top 30 companies within the Nifty200 index, selected based on stringent quality metrics such as financial health, profitability, and sustainable growth. I believe the SBI Nifty200 Quality 30 Index Fund can be a valuable addition for investors, enabling them to invest in quality companies passively for long-term wealth creation," said Nand Kishore, MD & CEO, SBI Funds Management. 'The Nifty200 Quality 30 Index represents a focused selection of high-quality companies from the broader Nifty200 universe, chosen through rigorous metrics such as financial strength, consistent profitability, and long-term growth potential. With the launch of the SBI Nifty200 Quality 30 Index Fund, we aim to offer investors a smart, relatively low-cost solution to gain exposure to quality businesses and build long-term wealth through a passive approach,' said D P Singh, Deputy MD and Joint CEO, SBI Funds Management. The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the Nifty200 Quality 30 and up to 5% in Government securities (like G-Secs, SDLs, and treasury bills), including triparty repo and units of liquid mutual fund. The minimum application amount during the NFO is of Rs 5,000 and in multiples of Re 1 thereafter with additional purchases of Rs 1,000 and in multiples of Re 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP (Systematic Investment Plan). Also Read | Nippon India Small Cap Fund exits IndusInd Bank, Adani Wilmar, 3 other stocks in April The fund manager for the SBI Nifty200 Quality 30 Index Fund is Viral Chhadva. NIFTY200 Quality 30 index seeks to combine the stock-specific quality factor used in active investment with the rules-based framework of passive Nifty200 Quality 30 index includes top 30 companies from its parent Nifty 200 index, selected based on their 'quality' scores. The quality score for each company is determined based on return on equity (ROE), financial leverage (Debt/Equity Ratio) and earning (EPS) growth variability analysed during the previous 5 years. The weights of the stocks are derived from their Quality scores and square root of free float market cap. The stock weight is capped at 5%. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Mint
06-05-2025
- Business
- Mint
Should you diversify your portfolio by adding mutual funds focused on quality strategy?
Several mutual funds have filed with the Securities and Exchange Board of India for quality strategy funds. Quality strategy involves investing in companies that have strong fundamentals and robust balance sheets. It prioritises stocks with high profitability, high return on equity and low levels of debt. Should those looking at diversifying their portfolios with a different investment style consider the quality theme now? With the markets going through a phase of uncertainty, past performance suggests that the quality theme tends to do well during such times. In 2013, when the US Federal Reserve started to unwind the huge liquid ity surplus it had maintained to stimulate the economy, the benchmark Nifty 50 Index gained 6%, while the Nifty 200 Quality 30 Index advanced 17%. It outperformed other strategies — with the Nifty 200 Value 30 Index losing 15%, the Nifty 200 Alpha 30 Index adding 14% and the Nifty 200 Momentum 30 Index rising 10%. Value strategy focuses on stocks trading at cheaper valuations than their earnings and intrinsic value. The alpha strategy calls for investing in stocks that have widely outperformed market benchmarks in recent periods, and the momentum strategy looks for stocks with recent price up-moves. In 2018, when the markets faced pressure from the impact of the IL&FS crisis, the Nifty 50 Index was up 4%, while most other strategies yielded negative returns. However, the Nifty 200 Quality 30 Index delivered 7% returns. "In today's environment of economic uncertainty and moderating growth, businesses with sound financials and sustainable profitability stand out," said S Naren, executive director and chief investment officer of ICICI Mutual Fund, which recently launched the ICICI Prudential Quality Fund. 'A quality strategy-oriented fund aims to tap into this potential by selecting high quality companies available at reasonable valuations, thereby aiming to build a resilient portfolio designed to perform across market cycles. With attractive valuations in the quality segment, we believe this is an opportune time for investors to adopt a quality-focused strategy." While most funds in this segment are passively managed – tracking the performance of the quality index – ICICI MF's quality fund is an actively managed fund. Experts expect quality as a theme to do well going ahead, as it has underperformed other strategies from FY21 to FY24. "The volatility induced in the market over the last few months (GDP slowdown, tariffonomics, Indo-Pak situation) has poked the bubble of a pure liquidity and deep value driven rally in stocks and sectors," said Sunil Subramaniam, a market expert and former mutual fund CEO. 'So now companies with sound financials, deep moats and entry barriers, high corporate governance and relative stability and predictability of earnings are the ones which will withstand the test of facing up to the uncertain local and global environment over the next few months. In effect, it's the time for 'quality' to dominate allocations by both foreign institutional investors and domestic institutional investors." Strategy-based investing can be considered more of a tactical allocation than part of one's long-term core portfolio. Investors can complement the quality strategy with other strategies. 'By itself, quality may not always work but combining it with momentum can give a better investor experience," pointed out Kavitha Menon, founder of Probitus Wealth. Quality can also be combined with value because when value does well, quality underperforms and vice-versa. However, investors who are at the beginning of their investment journey should stick to regular diversified equity funds to build up their core investment portfolio before looking at tactical investment calls.
