ETFs are generally passively managed mutual fund schemes tracking a benchmark index and reflect the performance of that index.
ETFs and Index funds are gaining traction in India. The flows into ETFs and index funds are seeing a steady increase over the years across segments. Experts see the surge in flows as a positive indicator of the gaining acceptance of ETFs.
In this scenario, ICICI Prudential Mutual Fund is launching Nifty Alpha Low Volatility 30 ETF, a multi-factor index based ETF. Check this post to know more about multi-factor indices.
Fund Details:
Benchmark: Nifty Alpha Low-Volatility 30 Total Return Index.
Listing: NSE and BSE,
Minimum Amount for Application: During NFO: Rs. 5,000 and in multiples of Re.1.
On Stock Exchanges: Investors can buy/sell units of the Scheme in round lot of 1 unit and in multiples thereof.
Issue open: Aug 3- 10.
No Entry load.
Expense ratio: -
Nifty Alpha Low Volatility 30 Index -Methodology.
The stocks are picked from Nifty 100 and Nifty Midcap 50, with individual stock weight capped at 5%. Nifty Alpha low-Volatility 30 Index moves away from assigning weights based on market capitalization and instead considers their relevancy to factors.
5-Year Rolling Returns:
Since 01-April-2005 (First Observation on 01-April-2010) till 22-July-2020.
Source: Icici MF.
Historically, Nifty Alpha Low Volatility 30 Index has given better risk adjusted returns over the long period.
ICICI Prudential Alpha Low Vol 30 ETF provides investors a choice to take exposure to multiple factors through a single index product. Investors can consider investing this as part of their satellite portfolio, Nifty 50 index funds being the core portfolio.
ETFs and Index funds are gaining traction in India. The flows into ETFs and index funds are seeing a steady increase over the years across segments. Experts see the surge in flows as a positive indicator of the gaining acceptance of ETFs.
In this scenario, ICICI Prudential Mutual Fund is launching Nifty Alpha Low Volatility 30 ETF, a multi-factor index based ETF. Check this post to know more about multi-factor indices.
Fund Details:
Benchmark: Nifty Alpha Low-Volatility 30 Total Return Index.
Listing: NSE and BSE,
Minimum Amount for Application: During NFO: Rs. 5,000 and in multiples of Re.1.
On Stock Exchanges: Investors can buy/sell units of the Scheme in round lot of 1 unit and in multiples thereof.
Issue open: Aug 3- 10.
No Entry load.
Expense ratio: -
Nifty Alpha Low Volatility 30 Index -Methodology.
The stocks are picked from Nifty 100 and Nifty Midcap 50, with individual stock weight capped at 5%. Nifty Alpha low-Volatility 30 Index moves away from assigning weights based on market capitalization and instead considers their relevancy to factors.
5-Year Rolling Returns:
Since 01-April-2005 (First Observation on 01-April-2010) till 22-July-2020.
Historically, Nifty Alpha Low Volatility 30 Index has given better risk adjusted returns over the long period.
ICICI Prudential Alpha Low Vol 30 ETF provides investors a choice to take exposure to multiple factors through a single index product. Investors can consider investing this as part of their satellite portfolio, Nifty 50 index funds being the core portfolio.
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