ICICI Prudential Mutual Fund has introduced a new investment opportunity called the ICICI Prudential Equity Minimum Variance Fund.
This open-ended equity scheme focuses on reducing market volatility while aiming for long-term capital growth.
Key Objectives and Strategy
The fund’s main goal is to provide long-term capital growth by investing in equity and equity-related instruments.
It uses a minimum variance strategy, aiming to create a portfolio with lower volatility compared to the Nifty 50 TRI benchmark.
This innovative approach involves selecting low-volatility assets to build a diversified portfolio while still targeting strong returns.
The fund will be managed by Vaibhav Dusad and Nitya Mishra.
Subscription and Investment Details
New Fund Offer (NFO): Open for subscription and closes on December 2.
Minimum Investment
Lump sum: Rs 5,000 (in multiples of Rs 1).
Systematic Investment Plan (SIP):
1) Daily, weekly, fortnightly, or monthly SIPs: Rs 100 (in multiples of Rs 1), with at least six installments.
2) Quarterly SIPs: Rs 5,000, with at least four installments.
Exit Load Policy
1) 1% exit load if redeemed or switched within 12 months of allotment.
2) No exit load after 12 months.
Large-Cap Focus for Stability
S. Naren, Executive Director and Chief Investment Officer at ICICI Prudential Asset Management, explained that the fund prioritizes large-cap investments using a minimum variance strategy.
This approach aims to invest in low-volatility stocks, offering a defensive solution amid high market valuations.
The portfolio will be built using detailed analysis and weight-based allocation.
Who Should Consider This Fund?
This fund is suitable for investors who:
1) Want long-term capital growth.
2) Prefer to minimize exposure to market volatility while investing in equity.
3) Are interested in large-cap companies with strong governance and high cash flows.
The ICICI Prudential Equity Minimum Variance Fund offers a smart investment option for those seeking a balanced approach to equity investing.
By combining a low-variance approach with a focus on large-cap investments, this fund offers a balanced option for investors looking to navigate uncertain markets while aiming for steady returns.
