🧾 1. Fund Overview
| Parameter | Details |
|---|---|
| Fund Name | SBI Nifty200 Quality 30 Index Fund |
| AMC | SBI Funds Management Ltd. |
| NFO Open & Close Dates | May 16, 2025 – May 29, 2025 |
| Allotment Date | Within 5 business days from NFO close |
| Fund Category | Equity – Index Fund |
| Fund Type | Open-ended |
| Benchmark Index | Nifty200 Quality 30 TRI |
| Fund Manager | Mr. Viral Chhadva |
| NAV (NFO Price) | ₹10 per unit |
| Risk Factor | 🟠 Moderate to High Risk (per Riskometer) |
📄 Source: [KIM, SID – SBI Mutual Fund]
🎯 2. Investment Objective
To provide returns that closely correspond to the total returns of the securities in the Nifty200 Quality 30 Index, subject to tracking error.
📄 Source: [SID – Section I: Objective]
💡 3. Fund Strategy & Theme
- Core Strategy: Passively replicates the Nifty200 Quality 30 Index, which selects top 30 stocks based on return on equity (RoE), debt-equity ratio, and earnings per share (EPS) variability from the Nifty 200 universe.
- Style: Quality Factor Indexing
- Geographic Exposure: Domestic (India)
- Stock Selection: Based on NSE Index methodology – quantitative quality filters.
📄 Source: [SID – Investment Strategy]
📊 4. Asset Allocation & Risk Profile
| Asset Class | Min (%) | Max (%) |
|---|---|---|
| Equities (Index Constituents) | 95 | 100 |
| G-Secs, T-Bills, Triparty Repo, etc. | 0 | 5 |
- Riskometer: 🟠 Moderate to High
- Suitability: Investors with a 5+ year horizon and moderate-to-high risk appetite seeking long-term equity exposure via quality-factor strategy.
📄 Source: [KIM, SID – Asset Allocation Section]
💬 5. Fund Manager Commentary
Not explicitly stated. However, the index-based approach limits fund manager discretion. The strategy aims to provide consistent returns through quality stock exposure.
📄 Source: [SID – Strategy Overview]
📈 6. Peer Comparison & Industry Relevance
| Fund Name | AMC | Type | Strategy | AUM (₹ Cr) | 3-Yr CAGR |
|---|---|---|---|---|---|
| ICICI Prudential Nifty200 Quality 30 | ICICI Prudential | Index Fund | Quality ETF | ~660 | ~19.5% |
| Nippon India Nifty Alpha Low Vol 30 | Nippon India MF | Index Fund | Smart Beta | ~350 | ~17.0% |
Note: SBI’s offering adds a low-cost option from a trusted brand with wide distribution.
📄 Source: [Industry Fund Data – AMFI, Respective Fund Factsheets]
💸 7. Costs & Exit Load
- Expense Ratio (Estimated): Up to 1.00%
- Minimum Investment:
- Lumpsum: ₹5,000 (NFO), ₹1,000 (Additional)
- SIP: Available post-launch
- Exit Load:
- 0.25% if redeemed within 15 days
- Nil after 15 days
📄 Source: [KIM – Load & Expense Structure]
💼 8. Tax Implications
- Classification: Treated as equity mutual fund
- STCG (holding < 1 year): Taxed at 15%
- LTCG (holding ≥ 1 year): Taxed at 10% if gains exceed ₹1 lakh annually
📄 Source: [SID – Taxation Section]
👥 9. Who Should Consider This NFO?
- Long-term investors looking for passive, factor-based equity exposure
- Those seeking diversification across quality Indian companies
- Investors wanting lower-cost alternatives to active equity funds
- DIY investors comfortable with index investing
✅ 10. Pros & Cons
Pros
✔ Factor-based investing (Quality) backed by NSE index
✔ Low-cost passive strategy
✔ Diversification across high-quality companies
Cons
✖ Tracking error risk
✖ No downside protection or active intervention
✖ Limited to index constituents; not dynamically managed
📄 Source: [SID, KIM – Strategy & Risk Sections]
⏱️ 11. Market Timing & Strategic Fit
This NFO arrives at a time when quality-focused investing is gaining favor, especially amidst market volatility. It may suit investors reallocating from high-beta to more resilient themes.
🧠 12. Final Take – Analyst Viewpoint
The SBI Nifty200 Quality 30 Index Fund provides a smart beta edge to traditional index investing through the “quality” factor. While it doesn’t offer innovation per se, it adds value for investors seeking passive exposure with a slightly refined stock selection method. Ideal for disciplined, long-term portfolios.
⚠️ 13. Disclaimer
This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before investing. MarketMetricsHub is not responsible for investment decisions based on this analysis.
🔗 External Links
- Link to Scheme Information Document – visit: Scheme Information Document (SID)