ICICI Prudential Mutual Fund has launched Nifty Low Vol 30 ETF FOF. The NFO opens on March 23 and closes on April 6. The fund aims to provide returns that closely correspond to that of its benchmark, the Nifty 100 Low Volatility 30 Index.
By tracking the least volatile stocks in the Nifty 100, the scheme offers wealth-creation opportunities with a lower level of volatility. Historically, the index has provided returns of 12-16 percent CAGR over the past five years.
Nimesh Shah, Managing Director, ICICI Prudential AMC, said investors get access to a factor-based smart beta exchange-traded fund (ETF) that limits downside risk and gain exposure to the least-volatile blue-chip companies across sectors.
The weights of the stocks in the index are based on volatility over a year, and individual stocks’ weight is capped at 3 percent. The index’s top three sectors are software, personal care and cement. The index is rebalanced on a quarterly basis.
Aditya Birla Sun Life AMC has launched two new index funds - Nifty Midcap 150 Index Fund and Nifty Smallcap 50 Index Fund. The schemes will track the Nifty Midcap 150 TRI and the Nifty Smallcap 50 TRI, respectively. The new fund offers closes on March 26, and the minimum investment is ₹500.
A Balasubramanian, Managing Director, Aditya Birla Sun Life AMC, said that in periods of economic recovery, the market becomes more broad-based, making it a favorable period for mid- and small-caps to outperform.
While the macro-economic factors seem to be in place, he said the government’s reinvigorated push to manufacturing and infrastructure growth through policies is further strengthening the case for mid-and small-cap companies to do well.
For investors seeking allocation to higher-growth MidCap and smallCap segments, index funds can provide a lower-risk alternative with the advantage of lower cost, he added.
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