HDFC MF offers new scheme tracking Nifty100 Quality 30 Total Returns Index

Fund house says scheme meant for investors seeking 'financially stable and resilient companies with robust balance sheets'

HDFC Asset Management Company Limited (HDFC AMC) has launched a new passive scheme to replicate the performance of the Nifty100 Quality 30 Total Returns Index (TRI), offering investors an opportunity to “gain exposure to high-quality businesses with strong financial metrics”.  HDFC Nifty100 Quality 30 Index Fund will be open for subscription from January 31 to February 14, 2025. The new fund offer (NFO) “seeks to cater to investors looking for long-term wealth creation through a quality-focused investment strategy, emphasising financially stable and resilient companies with robust balance sheets,” said the company in a statement.  Index composition  The Nifty100 Quality 30 Index comprises 30 stocks selected from the Nifty 100 index based on quality scores. These scores are determined using key financial metrics such as return on equity (ROE), financial leverage (debt/equity ratio), and earnings growth variability over the last five years. Quality investing is known to focus on companies with strong financial fundamentals, aiming to deliver long-term compounding returns while reducing volatility risks.  According to historical data, the Nifty100 Quality 30 TRI has delivered a compound annual growth rate of 13.6 per cent, outperforming the Nifty 100 TRI, which recorded a CAGR of 12.4 per cent (measured from the index's inception on October 1, 2009, to December 31, 2024). However, investors should note that past performance is not a guarantee of future returns.  Fund features  Nirman Morakhia and Arun Agarwal will manage the new fund. Investors can participate with a minimum investment of Rs 100 during both the NFO period and the continuous offer period once the scheme reopens for purchase and sale. Additionally, there will be no entry or exit load, and unit allotments will be subject to applicable stamp duty and transaction charges.  “The HDFC Nifty100 Quality 30 Index Fund aligns with our vision of delivering excellence in Index Solutions, leveraging our 20+ years of expertise in this space. This fund offers investors the potential to benefit from the long-term compounding of India’s financially strong, efficient, and resilient companies,” said Navneet Munot, managing director and chief executive officer of HDFC AMC.  The fund offers Systematic Investment Plan pause facility for investors who wish to temporarily pause their SIP in the schemes of the fund.