Edelweiss Nifty 100 Quality 30 Index Fund
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Business Overview
The Edelweiss Nifty 100 Quality 30 Index Fund is a mutual fund designed for investors seeking long-term capital appreciation through a diversified portfolio of high-quality stocks. It targets those who want to invest in the top 30 companies from the Nifty 100 index, focusing on quality and sustainability. This fund is ideal for risk-averse investors looking for stability and consistent returns in the Indian market.
- Invests in top 30 quality stocks from Nifty 100
- Focus on long-term capital appreciation
- Diversified portfolio reduces risk
- Ideal for risk-averse investors
- Backed by robust research and analysis
- Aligned with sustainable investment strategies
Investment Thesis
The Edelweiss Nifty 100 Quality 30 Index Fund stands out due to its strong promoter credibility and a robust growth trajectory in digital services. With attractive valuations compared to peers, this fund presents a compelling opportunity for investors seeking quality and growth in their portfolios.
- Managed by a reputable promoter group with a strong track record.
- Capitalizes on the growing digital services sector, ensuring long-term growth.
- Offers attractive valuation metrics, making it a cost-effective investment option.
- Focuses on high-quality companies, enhancing risk-adjusted returns.
- Ideal for investors looking for a blend of stability and growth potential.
Opportunity vs Risk
- Diversified exposure to quality stocks
- Potential for long-term capital growth
- Lower expense ratio than active funds
- Suitable for risk-averse investors
- Market volatility affecting returns
- Limited to top 100 companies
- Performance tied to index fluctuations
- Economic downturns impact all sectors
Peer Perspective
Edelweiss Nifty 100 Quality 30 Index Fund trades at a slight premium compared to peers like HDFC Nifty 50 Index Fund and ICICI Nifty Next 50 Index Fund; a sustained growth acceleration could trigger a favorable rerating.
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10BusinessHighThe fund focuses on quality companies, indicating a future-ready sector.
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10GrowthHighConsistent revenue and profit growth observed in underlying companies.
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10ProfitabilityHighStrong ROE and ROCE, but OCF shows some volatility.
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8ValuationHighP/E and P/B ratios are in line with peers, suggesting fair valuation.
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7BalanceHighDebt levels are manageable, but liquidity could be improved.
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6GovernanceGoodPromoter holding is stable, but some concerns over disclosures.
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5DriversGoodGrowth drivers are present, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.