ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Equity Minimum Variance Fund. It is an open-ended scheme that will invest in large-cap equity securities while limiting portfolio volatility when compared to the Nifty 50 TRI index. The scheme will seek long-term capital appreciation by creating a diversified portfolio with reduced volatility.
NFO Details
The scheme will open for subscription on November 18, 2024, and close on December 2, 2024.
The minimum investment required is Rs 5,000 and in multiples of Re 1. There is no entry load, but an exit load of 1 per cent will apply if units are redeemed within 90 days from the date of allotment. The benchmark for the scheme is the Nifty 50 TRI index.
According to ICICI Prudential Mutual Fund, the scheme focus on less volatile large-cap equities. The fund will seek to build a portfolio by assigning greater weight to stocks with lower volatility through the use of a minimum variance technique.
ICICI Prudential Mutual Fund said in a statement that this strategy is designed to decrease exposure to market swings while providing growth potential while reducing risk in comparison to the benchmark. To achieve low volatility, the portfolio is constructed using extensive analysis, strategic weight management, and view-based allocation, it added.
S Naren, executive director and chief investment officer, ICICI Prudential Asset Management, said: “We are pleased to introduce ICICI Prudential Equity Minimum Variance Fund – a scheme focused on large-cap investments using a minimum variance approach. By prioritising stocks with lower volatility, the launch of this scheme reflects our defensive stance amid high valuations, while still leveraging India’s favourable structural and macroeconomic outlook.”
Who Should Invest?
According to ICICI Prudential Mutual Fund, the scheme is suitable for investors seeking long-term capital growth while aiming to minimise market volatility. It is appropriate for those who are concerned about high market swings, but want to invest in large-cap companies with solid governance, high cash flows, and moderate volatility. It is especially suggested for investors who choose a conservative strategy in the current market situation, ICICI Prudential Mutual Fund said.
