The NFO of ICICI Prudential Mutual Fund’s Nifty200 Quality 30 Index Fund, an open-ended index scheme, opened on Wednesday, May 21. This newly launched fund mirrors the Nifty200 Quality 30 Index, offering investors exposure to a curated portfolio of 30 fundamentally sound companies from the broader Nifty 200 universe.
These companies are selected based on stringent quality parameters such as Return on Equity (ROE), low Debt-to-Equity ratio, and stable earnings growth.
The fund’s strategy draws from the principles of factor investing, a methodology that targets specific drivers of return such as quality, momentum, low volatility, value, and size.
By focusing on the ‘Quality’ factor, the scheme aims to provide relatively stable performance, even during market downturns.
Abhijit Shah of ICICI Prudential AMC, said “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.”
Historically, the Nifty200 Quality 30 Index has outperformed broader market indices during critical periods such as the global market correction (2015–16), the COVID-19 crash (2020), and the Ukraine crisis (2021–22).
Key features of the fund:
- Type: Open-ended index fund tracking the Nifty200 Quality 30 TRI
- Fund Managers: Nishit Patel and Ashwini Shinde
- Minimum SIP Investment: Rs 1,000 (minimum of 6 installments for most frequencies; 4 for quarterly SIP)
- Exit Load: Nil
How the index selects stocks:
30 stocks from the Nifty 200 universe are selected based on a composite quality score.
For non-financial companies, the score equally weighs ROE, inverse of Debt-to-Equity, and earnings growth variability, and for the financial companies, the model uses ROE and earnings variability.
Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
