At this time, there is a lot of upheaval in the stock market. There was a decline in the stock market on the very first day. At one time, the BSE Sensex was more than 1100 points. But by the time the market closed, it fell to only 239 points. In such an environment, retail investors get very scared. Therefore, they are advised to earn money from the stock market through mutual funds. If you also think the same, then there is an opportunity for you. At this time, a New Fund Offer (NFO) of ICICI Prudential Mutual Fund has come in the market.
What is the type of NFO
ICICI Prudential’s Equity Minimum Variance Fund’s NFO has come in the market these days. This NPO was launched just yesterday. It is an open-ended equity scheme that follows the minimum volatility theme. Its objective is to achieve capital appreciation in the long term by investing in equity and equity-related instruments while reducing the volatility of the portfolio compared to the scheme’s benchmark Nifty 50 TRI.
For how long can you invest
The NFO is open from 18th and will close on 2nd December. S Naren, Executive Director and Chief Investment Officer, ICICI Prudential Asset Management, says that this fund will give preference to low volatility stocks amid high valuation of stock markets. This reflects the defensive approach of this fund.
Where will the investment be
Naren says the investment strategy of ICICI Prudential Minimum Variance Fund focuses on large capitalization companies, with higher weightage to low volatility stocks.
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It creates a diversified portfolio using in-depth analysis, weight management, and approach-based investing that focuses on minimizing volatility.
Who is the scheme better for?
This scheme is best suited for investors who want good capital appreciation in the long term. Those who want to invest in equities but are concerned about high market volatility. Those who want to invest in large-cap companies with good corporate governance and high cash flows.
How much return will you get
When the market has been less volatile, Nifty Midcap 150 TRI has given investors a return of 18.1 percent CAGR. Similarly, when the market has been less volatile, the Nifty Smallcap 250 TRI index has given a return of 16.9 percent CAGR and Nifty 100 TRI has given a return of 15 percent CAGR. Nifty 50 TRI has also been successful in giving a return of about 15 percent CAGR.