What is Nifty500 Flexicap Quality 30 index? 5 things to know

With the ability to modify exposure in response to market developments, the Nifty500 Flexicap Quality 30 Index is intended for investors looking for high-quality companies across large, mid, and small caps. It eliminates the need to forecast market cycles by combining quality investing with a rules-based, trend-following strategy.

Before reading further, please note that this is just for informational purposes only and not intended to recommend any sort of investment. Please seek advice from a certified financial advisor before making any investment decisions, taking into account your personal financial objectives and risk profile.

5 things to know about Nifty500 Flexicap Quality 30 index

The Nifty500 Flexicap Quality 30 index aims to track the performance of the Nifty100 Quality 30, Nifty Midcap150 Quality 50 and Nifty Smallcap250 Quality 50, selected based on their six-month average free-float market capitalisation.

The index constitutes the ten largest stocks from each of the large, mid and small cap quality universes. All 30 constituents are then equal-weighted subject to market cap segment weighting.

The index uses a simple trend-following approach to decide where to invest across market segments. It tracks the long-term trend between mid- and small-cap stocks versus large-cap stocks using a 200-day moving average.

When mid and small caps show stronger momentum, the index increases its exposure to them. When large caps lead, it shifts allocation toward large-cap stocks. This structured approach helps the index adapt to changing market conditions without guesswork.

Within large, mid, or small-cap cap, it selects only companies with solid profitability, stable earnings, and healthy balance sheets. This ensures that even as allocations change, investments remain anchored in fundamentally strong businesses, offering investors a balanced and disciplined way to participate across the market.

The Nifty500 Flexicap Quality 30 Index undergoes quarterly rebalancing on the last trading day of March, June, September, and December.

In addition, the index undergoes semi-annual portfolio reconstitution on the last trading day of June and December.

This structured approach ensures that the index remains aligned with both market trends and quality criteria.

Funds tracking the index

• DSP Nifty500 Flexicap Quality 30 Index Fund
• DSP Nifty500 Flexicap Quality 30 ETF

Investor caution and market volatility have intensified as a result of recent geopolitical developments. Businesses with solid finances and steady profits are frequently seen as more robust in these circumstances.