SBI Mutual Fund launches Nifty200 Quality 30 Index Fund: All you need to know 

SBI Mutual Fund has launched the SBI Nifty200 Quality 30 Index Fund, an open-ended scheme created to replicate or track the Nifty200 Quality 30 Index.

The New Fund Offer (NFO) is scheduled to open on May 16, 2025, and will close on May 29, 2025.

A NFO in a mutual fund refers to the initial offering period when a scheme is launched, allowing investors to purchase units at the starting price for a limited time, typically 7 to 30 days. 

This fund aims to give investors exposure to 30 carefully selected companies from the broader Nifty 200 index, chosen based on specific quality metrics. These metrics include return on equity (ROE), financial leverage (debt/equity ratio), and earnings growth variability, all assessed over a five-year period. Notably, the index sets a limit of 5% on the weight of each stock.

The investment goal is to mirror the performance of the underlying index, acknowledging that tracking errors may occur. The fund does not guarantee achievement of this objective.

Within the scheme, 95–100% of assets will be allocated to stocks in the Nifty200 Quality 30 index, with a small allocation of up to 5% in government securities, including treasury bills and triparty repos.

To participate in the NFO, investors must make a minimum application of Rs 5,000, with subsequent investments starting at Rs 1,000. There's also an option to invest through Systematic Investment Plans (SIPs) at various frequencies.

Viral Chhadva will be manage the fund, bringing his experience from managing other passive products at SBI Mutual Fund, such as the SBI Nifty50 Equal Weight ETF and SBI Nifty 500 Index Fund.

As of April 30, 2025, SBI Mutual Fund holds the title of India's largest fund house, boasting assets under management (AUM) exceeding Rs 11 lakh crore. The firm operates as a joint venture between the State Bank of India and Amundi, a renowned global asset management company.