ICICI Prudential Nifty200 Quality 30 Index Fund Filed Draft

ICICI Prudential Mutual Fund has filed a draft for the ICICI Prudential Nifty200 Quality 30 Index Fund, an open-ended index fund that will track the Nifty200 Quality 30 Index. The scheme aims to mirror the index’s returns by investing in the stocks that make up the index, maintaining the same weightage, and following a passive investment approach.

Investment Strategy

The fund will invest 95-100% of its assets in equity and equity-related securities from the Nifty200 Quality 30 Index. The remaining 0-5% will be in money market instruments, including TREPs (Tri-Party Repos) and units of debt schemes. The benchmark for this scheme is the Nifty200 Quality 30 TRI (Total Return Index).

The index consists of 30 stocks from the Nifty200, selected based on:

1. Return on Equity (ROE)
2. Earnings growth stability
3. Low financial leverage (Debt-to-Equity ratio)

The index is reviewed periodically, and stocks are added or removed based on these factors.

Fund Structure

• Category: Index Fund
• Investment Objective: To replicate the performance of the Nifty200 Quality 30 Index, subject to tracking error
• Fund Managers: Nishit Patel and Ashwini Shinde
• Liquidity: Open-ended structure with daily purchases and redemptions
• Exit Load: NIL
• Plans: Direct and Regular
• Plan Options: Growth, IDCW(IDCW Payout & IDCW Reinvestment)

Minimum Investment

• New Fund Offer (NFO) Minimum Investment: ₹1,000 (plus multiples of ₹1)
• Additional Purchase: ₹1,000 and above
• Switch-in Minimum Amount: ₹1,000

Focus on Semi-Urban Reach

The fund aims to expand into semi-urban and smaller cities (B30 cities). SEBI regulations allow mutual funds to charge additional expenses for attracting retail investors from these regions, subject to conditions. The  AMC  will calculate and disclose the first  NAV within 5 business days from the date of allotment. Subsequently,   the NAV will be calculated and disclosed at the close of every Business Day.

Conclusion

Since this is a new fund, performance will depend on how closely the scheme tracks its underlying index.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.