Mumbai: ICICI Prudential Mutual Fund has announced the launch of the ICICI Prudential Nifty 200 Quality 30 Index Fund, an open-ended index scheme tracking the performance of the Nifty 200 Quality 30 Index. The strategy is based on the “Quality” factor, one of the foundational principles of investing, emphasising businesses with robust financial fundamentals.
Typically, factor investing focuses on key performance drivers like quality, momentum, low volatility, value, and size, aiming to optimise returns while managing risk. This new fund gives investors access to a curated portfolio of 30 companies from the Nifty 200 universe, selected based on strong quality parameters such as high ROE, low debt-to-equity ratio, and stable earnings growth.
Abhijit Shah, Chief Marketing and Digital Business Officer at ICICI Prudential AMC, said, “With this offering, we aim to provide investors access to a strategy that combines the core principles of quality investing – resilience, efficiency, and relative stability. This rule-based and transparent approach is ideal for those looking to build long-term wealth. Historically, this index has performed well even during market downturns.”
The Nifty 200 Quality 30 Index has consistently outperformed broader indices during volatile periods such as the global sell-off (2015–16), the COVID-19 pandemic (2020), and the Russia-Ukraine crisis (2021–22), highlighting its defensive characteristics.
Why Invest in This Fund?
• Rule-based and Transparent: Stock selection and weighting are completely index-driven.
• Low Cost: The passive structure ensures lower expense ratios.
• Systematic Investment Friendly: Available through SIP, STP, and SWP options.
• Market Downturn Resilience: Historically strong performance during market stress.
Key Features of the Index:
• Index Methodology: Selects the top 30 stocks from the Nifty 200 universe based on a composite quality score. For non-financial companies, the score equally considers ROE, inverse debt-to-equity ratio, and earnings variability. For financial companies, it considers ROE and earnings variability.
• Sector Allocation (as of April 30, 2025): The index is diversified across FMCG, IT, financial services, and industrials.
• Rolling Returns: Over 1, 5, and 10-year periods, the Nifty 200 Quality 30 TRI has consistently delivered 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%, outperforming the Nifty 200 and Nifty 50, which returned 14.5% over the same period.
Fund Details:
• Exit Load: Nil
• Minimum SIP Amount: ₹1,000* (minimum of 6 installments)
• Benchmark: Nifty 200 Quality 30 TRI
• Fund Managers: Mr. Nishit Patel and Ms. Ashwini Shinde
*Applicable for daily, weekly, fortnightly, monthly, and quarterly SIPs. Minimum 4 installments required for quarterly SIPs.
This launch provides a robust investment avenue for investors looking to adopt a disciplined, data-driven approach to long-term equity investing.
