An open-ended scheme replicating/tracking the Nifty100 Quality 30 Index (TRI)
HDFC Asset Management Co. Ltd., investment manager to HDFC Mutual Fund (HDFC MF), one of India's leading mutual fund houses, announces the launch of the HDFC Nifty100 Quality 30 Index Fund, a passively managed fund that aims to track the Nifty100 Quality 30 Total Returns Index. The New Fund Offering (NFO) opens on January 31, 2025 and closes on February 14, 2025. The scheme could be suitable for investors seeking long-term wealth creation through a quality-first investment approach focused on resilient and stable businesses with strong balance sheets.
The Nifty100 Quality 30 Index comprises 30 stocks selected from the Nifty 100 index based on their quality scores, which are determined by metrics including return on equity (ROE), financial leverage (Debt/Equity Ratio), and earnings growth variability analysed over the previous 5 years. As Quality investing focuses on financially strong and resilient companies, it has the potential to unlock the benefits of compounding long-term returns, while aiming to provide relative peace of mind during market volatility. The Nifty100 Quality 30 TRI has delivered 13.6% CAGR compared to 12.4% CAGR for the Nifty 100 TRI, highlighting its potential for long-term wealth creation (returns considered from index inception on Oct 1, 2009 to Dec 31, 2024). Past performance may or may not be sustained in future and is not a guarantee of future returns.
The new fund will be managed by Mr. Nirman Morakhia and Mr. Arun Agarwal. Investors may participate with a minimum investment of Rs. 100 during both the New Fund Offer (NFO) period and the continuous offer period, which commences after the scheme reopens for purchase and sale. There is no entry or exit load, and the final unit allotment will be subject to the deduction of applicable stamp duty and transaction charges, where applicable.
Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited, said, “At HDFC Mutual Fund, our mission to be the wealth creator for every Indian, continues to drive us to offer a wide range of investment solutions to meet the needs of investors. We remain committed to our aim of delivering excellence in Index Solutions, leveraging our 20+ years of expertise in this space. The HDFC Nifty100 Quality 30 Index Fund could allow investors to benefit from the long-term compounding potential of India’s financially strong, efficient and resilient companies.”