Mumbai: ICICI Prudential Mutual Fund launches a new exchange-traded fund targeting the 30 most volatile stocks in the Nifty 100 index. The new fund will open on March 23 and close on April 6, the AMC said on Wednesday.
ICICI Prudential Nifty Low Volatility 30 Index is an open-ended fund of funds that will invest in these stocks, and the underlying ETF is repeating the Nifty 100 Low Volatility 30 Index, the fund said. It will invest in a portfolio of 30 smallest stocks with large capital in the Nifty 100 index.
The fund offers to deliver returns that are very similar to the returns delivered by the benchmark Nifty 100 index. Historically, the Nifty 100 low-volatility index 30 has yielded 12-16 percent returns annually in recent years. Nimesh Shah, managing director of the AMC, said that through this fund, an investor gains access to a factor-based smart beta ETF that limits the negative risks, because we want to help investors limit the impact of market volatility by least volatile blue investing -chips across sectors.
Source: Telangana Today