Minimum SIP Amount: ₹1,000: ICICI Prudential Nifty200 Quality 30 Index Fund

Investment Guru Tuesday, May 27, 2025 0

Minimum SIP Amount: ₹1,000: ICICI Prudential Nifty200 Quality 30 Index Fund

Highlights:

· The scheme replicates Nifty200 Quality 30 Index which aims to invest in companies with high return on equity (ROE), financial leverage, and stable earnings. These metrics are considered signs of quality businesses with efficient capital allocation

· 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

· 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

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.

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.

The Nifty200 Quality 30 Index has consistently outperformed broader indices during turbulent periods, such as the Global Sell-off (2015-16), the COVID-19 pandemic (2020), and the Ukraine crisis (2021-22), highlighting its defensive characteristics.

Why Invest in This Scheme?

· Rule-based and transparent: Stock selection and weights are derived entirely through index methodology.

· Lower Cost: Passive structure ensures a low expense ratio.

· Systematic Investment Ready: Available for SIP, STP, and SWP options.

· Market Downside Resilience: Historically outperformed in times of market stress.

Key Features:

· Index Methodology: The index selects top 30 stocks from the Nifty 200 universe based on a composite quality score. For non-financial stocks, the score equally weights ROE, the inverse of Debt-to-Equity, and earnings growth variability. For financials, it considers the return on equity (ROE) and earnings variability.

· Top Sectors: As of April 30, 2025, the index is diversified across sectors, including FMCG, IT, Financial Services, and Industrials.

· Rolling Returns: Over 1, 5, and 10-year periods, the Nifty200 Quality 30 TRI has demonstrated higher average rolling returns compared to the Nifty 50 TRI and Nifty 200 TRI

· Long-Term Performance: Since April 1, 2005, the index has delivered a CAGR of 18.0%, compared to 14.5% for the Nifty 200 and Nifty 50.

Scheme Details:

· Exit Load: Nil

· Minimum SIP Amount: ₹1,000* (6 minimum instalments)

· Benchmark: Nifty200 Quality 30 TRI

· Fund Managers: Mr. Nishit Patel and Ms. Ashwini Shinde

* For Daily, Weekly, Fortnightly, Monthly and quarterly SIP. Minimum instalments for quarterly frequency is 4.

NFO Period: May 21, 2025 – June 4, 2025

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