The Economic Times
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| 06 April, 2021, 02:20 AM IST | E-Paper
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    Investors looking for stable returns can find solace in mutual funds investing in least volatile stocks

    Synopsis

    The low volatility index has outperformed the frontline indices over seven and 10 year time frames. However, it has lagged behind over three and five-year time periods. Since 2008, the low volatility index has outperformed the frontline indices eight out of 13 calendar years. This seems to counter the notion that lower risk equals lower return.

    Can selectively picking less volatile stocks from the large-cap universe yield better results over the long term? This is the premise of the factor-based offering ICICI Prudential Nifty 100 Low Volatility 30 ETF FoF, which is based on the ETF launched back in 2017. Let’s explore if there is merit in pursuing such a strategy. The travails of actively managed large-cap funds over the past few years are known. Barring a couple of outliers, most
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