Many people have bought IPOs, try investing in this NFO, it can give bumper returns in long term.

New Delhi. Every week there are several IPOs in the stock market and people are eager to invest in it. Similarly, new funds are constantly coming in the mutual fund market which are called New Fund Offers (NFO). Like IPOs, NFOs are also launched for the first time for listing and in this too the early investors benefit greatly. One such NFO has been launched by ICICI Prudential Mutual Fund, named ICICI Prudential Equity Minimum Variance Fund.

This NFO by ICICI Prudential is an open-end equity scheme following the theme of minimum volatility. The objective is to achieve long-term capital appreciation by investing in equity and equity-related instruments while reducing portfolio volatility relative to the scheme’s benchmark Nifty 50 TRI. This new scheme introduces a new approach to investment using a low volatility strategy for asset selection and portfolio construction. This NFO is open from November 18 and will close on December 2.

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It is less risky.
S Narain, Executive Director and Chief Investment Officer, ICICI Prudential Asset Management said, We are delighted to introduce ICICI Prudential Equity Minimum Variance Fund. The launch of this scheme reflects our defensive approach by preferring low volatility stocks amid high valuations in the stock markets. It also works towards leveraging India’s favorable structural and macroeconomic outlook.

More investment in large companies
The investment strategy of ICICI Prudential Minimum Variance Fund focuses on companies with large capitalization (large cap stocks), with a higher weightage given to low volatility stocks. It uses in-depth analysis, weight management and approach-based investing to create a diversified portfolio that focuses on reducing volatility.

Great returns in the long term.
This scheme is best for investors who want good capital growth in the long term. People who want to invest in equity but are concerned about market volatility, who want to invest in large companies with good corporate governance and high cash flow. The return figures show that while market volatility has eased, the Nifty Midcap 150 TRI has returned investors at a compound growth rate of 18.1 percent. Similarly, the Nifty Smallcap 250 TRI Index has returned at a CAGR of 16.9 percent and the Nifty 100 TRI has returned at a CAGR of 15 percent. The Nifty 50 TRI has also posted gains at a CAGR of around 15 percent.

(Disclaimer: The stock mentioned here is based on the advice of the brokerage houses. If you want to invest in any of them, consult a certified investment advisor first. News 18 of any profit or loss you make. will not be responsible).

Tags: business news, IPO, Mutual fund