India’s largest fund house, SBI Mutual Fund on Thrusday launched the SBI Nifty200 Quality 30 Index Fund, which is an open-ended scheme replicating and tracking Nifty200 Quality 30 Index. The New Fund Offer (NFO) period for the scheme is May 16 to May 29, 2025.
The objective of the SBI Nifty200 Quality 30 Index Fund 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 that the investment will fulfill the objective of the scheme.
The stocks of the top 30 companies from the funds parent Nifty 200 index have been selected on the basis of their ‘quality’ scores, for the SBI Nifty200 Quality 30 Index Fund.
Additionally, the quality score for every firm is decided on the basis of return on equity (ROE), financial leverage (Debt/Equity Ratio) as well as earning (EPS) growth variability.
These factors are then analysed for the duration of the previous 5 years.
The weights of these stocks are derived from their Quality scores and square root of free float market cap. The weight of the stock is also capped at 5%.
To invest in the SBI Nifty200 Quality 30 Index, you can start with Rs 5,000 during the New Fund Offer (NFO) period, which runs from May 16 to May 29.
To invest, investors can set up SIPs (Systematic Investment Plans) daily, weekly, monthly, or even annually.
Investors can withdraw within 15 days and pay a 0.25% exit load. If investors wish to exit after that , it is free.
The fund is managed by Viral Chhadva, who manages multiple passive funds at SBI Mutual Fund, brings deep expertise to this portfolio.