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.
Abhijit Shah, Chief Marketing and Digital Business Officer at 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.”
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. (Refer to the graph below)