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.
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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).
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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)
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 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)
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