HDFC Mutual Fund has announced the launch of a new fund offer (NFO) for the HDFC Nifty 100 Quality 30 Index Fund, which will track the Nifty 100 Quality 30 Total Returns Index.
The NFO will be open for subscription from 31 January 2025 to 14 February 2025. This fund is a good choice for investors who want to focus on a quality-first investment strategy aimed at long-term wealth creation.
Key Features of the HDFC Nifty 100 Quality 30 Index Fund
The HDFC Nifty 100 Quality 30 Index Fund selects 30 stocks from the Nifty 100 Index based on their Quality Score. This score considers the last 5 years’ performance on key financial parameters such as:
Return on Equity (ROE)
Financial Leverage (Debt/Equity Ratio)
Earnings Growth Variability
The goal is to invest in financially strong and stable companies. As Navneet Munot, Managing Director
and CEO of HDFC AMC, mentioned, the fund is designed to help create wealth for investors by tapping into the long-term growth of efficient and financially strong Indian companies.
Performance History and Investment Details
The Nifty 100 Quality 30 Total Returns Index, the benchmark for this fund, has shown a CAGR of 13.6% from 1 October 2009 to 31 December 2024.
This outperforms the 12.4% CAGR of the Nifty 100 TRI. However, past performance does not guarantee future results.
Minimum Investment and Fees
Minimum Investment: Rs 100
No Entry or Exit Load: Investors can buy and sell units without incurring any entry or exit charges.
The fund is managed by Nirman Morakhia and Arun Agarwal. It is designed for long-term investors looking to benefit from the growth of financially stable companies.
As a purely equity fund, the HDFC Nifty 100 Quality 30 Index Fund is classified as Very High Risk on the riskometer. Therefore, investors should assess their risk tolerance before investing.