Many have bought IPOs, try investing money in this NFO, it can give bumper returns in the long term.

New Delhi. Many IPOs come in the stock market every week and people are eager to invest money in it. Similarly, new funds are continuously coming into the mutual fund market which are called New Fund Offers (NFO). Like IPO, NFOs are also launched for listing for the first time and in this too, those who invest money in the beginning get a lot of benefit. One such NFO has been launched by ICICI Prudential Mutual Fund, which has been named ICICI Prudential Equity Minimum Variance Fund.

This NFO of ICICI Prudential is an open-ended equity scheme following the minimum volatility theme. It aims to achieve long-term capital appreciation by investing in equity and equity-related instruments while reducing portfolio volatility compared to the scheme’s benchmark Nifty 50 TRI. This new scheme introduces a new approach to investing, using a low volatility strategy for asset selection and portfolio construction. This NFO is open from 18th November and will close on 2nd December.

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There is less risk in this
S Naren, Executive Director and Chief Investment Officer, ICICI Prudential Asset Management, said, we are pleased to introduce ICICI Prudential Equity Minimum Variance Fund. The launch of this scheme reflects our defensive approach by prioritizing stocks with low volatility amid high valuations in the stock markets. It also works towards taking advantage of India’s favorable structural and macroeconomic outlook.

More investment in big companies
The investment strategy of ICICI Prudential Minimum Variance Fund focuses on companies with large capitalization (large-cap stocks), with higher weightage given to stocks with lower volatility. It uses in-depth analysis, weight management and approach-based investing to create a diversified portfolio that focuses on reducing volatility.

Tremendous returns in long term
This scheme is better for those investors who want good capital growth in the long run. Those who want to invest in equities but are concerned about high market volatility, who want to invest in large-cap companies with good corporate governance and high cash flows. Profit figures show that when there has been less volatility in the market, Nifty Midcap 150 TRI has given returns to investors at a compound growth rate of 18.1 percent. Similarly, Nifty Smallcap 250 TRI index has given returns at the rate of 16.9 percent CAGR and Nifty 100 TRI has given returns at the rate of 15 percent CAGR. Nifty 50 TRI has also made profits at the rate of CAGR of about 15 percent.

(Disclaimer: The stocks mentioned here are based on the advice of brokerage houses. If you want to invest money in any of these, then first consult a certified investment advisor. AyraNews24x7 is not responsible for any profit or loss of yours. will be.)

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