Last updated:November 26, 2024, 09:07 IST

Investment Tips: If you also want a stock market -like return without taking more risk, then you can invest in new funds of ICICI Prudential. This fund invests in low -risk companies and in the long term …Read more

Like IPOs, mutual funds also issue NFOs.

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

This NFO of ICICI Prudential is an open ended equity scheme following the minimum volatility theme. It aims to achieve increase in capital in the long run by investing in equity and equity tools related to portfolio than the benchmark Nifty 50 TRI of the scheme. This new scheme presents a new approach to investment, in which the selection of assets and low volatility strategy for portfolio construction is used. This NFO is open from November 18 and will be closed on 2 December.

Also read – Will the government increase the amount of Chief Minister Girl Bahin Scheme! Where will the money come from, what are the options

Low risk in this
S. Narren, Executive Director and Chief Investment Officer of ICICI Prudential Asset Management, said, “We are happy to present ICICI Prudential Equity Minimum Varnement Fund.” The launch of this scheme shows our defensive approach by giving priority to low instability stocks between high evaluation of stock markets. It also works towards taking advantage of India -friendly structural and macroeconomic approach.

More investment in big companies
The investment strategy of the ICICI Prudential Minimum variety funds focuses on large captivisation companies (large-cap stocks), with less volatility stocks to be given more weightage. It creates a diverse portfolio using intensive analysis, weight management and approach-based investment that focuses on reducing instability.

Strong return in long term
This scheme is better for investors who want a good increase in capital in the long run. Those who want to invest in equity but are concerned about the high volatility of the market, who want to invest in large corporate governance and high cash-flow large-cap companies. Statistics of economy show that when there is low fluctuations in the market, Nifty Midcap 150 TRI has given returns to investors at 18.1 percent compound rate. Similarly, the Nifty Smallcap 250 TRI index has given 16.9 per cent CAGR and Nifty 100 TRI returns at the rate of 15 per cent CAGR. The Nifty 50 TRI has also made a profit of about 15 percent CAGR.

(Disclaimer: Stocks mentioned here are based on the advice of brokerage houses. If you want to invest money in any of these, consult the first certified Investment Advisor. News18 will not be responsible for any kind of profit or loss.)