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SBI Mutual Fund, India’s largest fund house, has launched Nifty200 Quality 30 Index Fund, an open-ended scheme allowing customers to invest in the top 30 companies from the NIFTY200 index.

The fund is designed to track the performance of the top 30 companies within the Nifty200 index, selected based on stringent quality metrics such as financial health, profitability, and

sustainable growth. The new fund offer (NFO) period for the scheme is May 16–29, 2025.

The investment objective of the scheme 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 or assurance that the investment objective of the scheme will be achieved.

"I believe the SBI Nifty200 Quality 30 Index Fund can be a valuable addition for investors, enabling them to invest in quality companies passively for long-term wealth creation," said Nand

Kishore, MD & CEO, SBI Funds Management.

The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the Nifty200 Quality 30 and up to 5% in government securities (like G-Secs, SDLs,

and treasury bills), including triparty repo and units of liquid mutual fund.

“The Nifty200 Quality 30 Index represents a focused selection of high-quality companies from the broader Nifty200 universe, chosen through rigorous metrics such as financial strength,

consistent profitability, and long-term growth potential,” said D. P. Singh, Deputy MD & Joint CEO, SBI Funds Management.

“With the launch of the SBI Nifty200 Quality 30 Index Fund, we aim to offer investors a smart, relatively low-cost solution to gain exposure to quality businesses and build long-term wealth

through a passive approach,” he added.

The minimum application amount during the NFO is ₹5,000 and in multiples of ₹1 thereafter with additional purchases of ₹1,000. Investments can also be done through daily, weekly, monthly,

quarterly, semi-annual, and annual SIP (Systematic Investment Plan).

The fund manager for the SBI Nifty200 Quality 30 Index Fund is Viral Chhadva, who has been associated with the fund house since December 2020. He currently manages passive offerings such as

the SBI Nifty50 Equal Weight ETF, the SBI Nifty50 Equal Weight Index Fund, and the SBI Nifty 500 Index Fund.

The Nifty200 Quality 30 index includes top 30 companies from its parent Nifty 200 index, selected based on their ‘quality’ scores. The quality score for each company is determined based on

return on equity (ROE), financial leverage (Debt/Equity Ratio) and earning (EPS) growth variability analysed during the previous 5 years. The weights of the stocks are derived from their

quality scores and square root of free float market cap. The stock weight is capped at 5%.