In such a situation, people are thinking of investing in something new. But it was down by 776 points during the day. In such a situation, if you invest in any asset and do not get the average return on time, then this investment can also give you a loss. Therefore, stock market experts advise such investors to invest through mutual funds instead of investing directly in the market.

Minimum Variance Fund

Ritesh Jagtap, proprietor of Jayesh Investment, says that investors aiming for a smooth investment can invest in the NFO of ICICI Prudential Equity Minimum Variance Fund. This NFO is closing on December 2. This fund focuses on low volatility. The market companies included in it are known for good corporate governance and high cash flow.

Investing to build funds

Two key factors should be considered while building a fund for future needs: historical average returns, which indicate potential growth, and inflation, which erodes purchasing power.

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Moreover, if inflation is higher than expected, even the fully funded amount may fall short of maintaining the desired standard of living, leaving the investor with a bitter experience.

what percent return

Essentially, low-volatility stocks evaluate performance based on risk-adjusted returns. Consider two stocks that have returned 47% in one year. If the first stock has a volatility rate of 24% and the second 12%, their risk-adjusted returns would be 1.95% and 3.91%, respectively. Clearly, the second stock offers a better risk-adjusted return. In fact, since 2005, low-volatility stocks have delivered a compounded rate of return of 18.5%. This is a better return than the return of the benchmark index.