Edelweiss Asset Management Limited launched a Nifty Alpha Low Volatility 30 Index Fund. The New Fund Offer (NFO) runs from April 26, 2024 till May 10, 2024. The multi-factor index fund comprises 30 stocks selected from a pool of top 150 listed stocks, that have recently outperformed the broader market yet are relatively less volatile, the fund house said.
The minimum investment amount for daily, weekly, fortnightly, monthly, and quarterly SIP will be Rs 100 and in multiples of Rs 1 thereafter. There is no exit load involved in the scheme.
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Since April 2005, the Nifty Alpha Low Volatility 30 Index has outperformed the Nifty 100 TRI index, outperforming it 88 per cent of the time if we take a 5-year rolling return basis and 100 per cent of the time on a 10-year rolling return basis. Over these periods, it has delivered average excess returns of 5.2 per cent and 5.9 per cent, respectively.
The Nifty Alpha Low-Volatility 30 Index is a multi-factor index based on 'Alpha and Low Volatility factors. Simply put, the index tracks the performance of 30 stocks, selected from a universe of 150 large and midcap stocks, that outperform the broader market but are relatively less volatile.
Investment Philosophy
The scheme will invest 95-100 per cent of the portfolio in equity and equity-related securities representing the Nifty Alpha Low Volatility 30 Index, with 0 to 5 per cent allocated to debt and money market instruments.
The index methodology will be factor-weighted and rebalanced semi-annually in June and December respectively. High Jensen Alpha and Low Volatility over the past year will determine stock weights. Non-Futures and Options (F&O) stocks and those with less than one year of listing history are excluded from investment consideration.
Radhika Gupta, MD & CEO, of Edelweiss Mutual Fund said, “This fund is an ideal solution for investors seeking to invest in large-cap oriented strategy which can outperform the broader market. This multi-factor approach, blending alpha and low-volatility factors, aims to deliver performance while mitigating volatility, thereby enhancing risk-adjusted returns for investors.”
