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ICICI Prudential Mutual Fund has introduced to launch ICICI Prudential Alpha Low Vol 30 ETF, an open ended index trade traded fund monitoring Nifty Alpha Low Volatility 30 Index. The providing goals to offer returns that intently correspond to the returns supplied by Nifty Alpha Low-Volatility 30 Index, topic to monitoring errors.
The New Fund Offer (NFO) will open on August three and shut on August 10. The benchmark is Nifty Alpha Low Volatility 30 TRI and the models of this ETF will likely be listed on NSE and BSE.
ICICI Prudential Alpha Low Vol 30 ETF gives traders a option to take publicity to a number of components by means of a single index product. It intends to counter the cyclical principle of single issue index construction technique. The index gives publicity to a portfolio of shares from numerous sectors, primarily based on prime mixture of alpha and low volatility.
“ICICI Prudential Alpha Low Vol30 ETF is a multifactor good beta technique. This technique addresses excessive sector focus of single issue primarily based index methods by means of diversification of factor-risk exposures and exhibiting decrease efficiency swings. Through this ETF, an investor will get entry to good beta technique which is rule-based and cost-effective,” says Nimesh Shah, MD & CEO, ICICI Prudential AMC.
By gaining publicity to ETFs primarily based on a number of issue methods, traders can obtain better diversification and turn into much less reliant on anyone issue to drive returns. Owing to those advantages, globally too, traders are more and more gravitating in the direction of a number of issue methods.
What is Nifty Alpha Low Volatility 30 index?
The Nifty Alpha Low Volatility 30 index consists of 30 shares chosen from Nifty 100 and Nifty Midcap 50. The weights of the shares are derived from alpha and low volatility issue scores with particular person inventory weight capped at 5%.
The index methodology is issue weighted and re-balanced semi-annually. This index intends to counter the cyclicality of single issue index technique and gives traders a option to take publicity to a number of components by means of a single index product.
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