ICICI Prudential Nifty Low Vol 30 ETF FOF invests in ICICI Prudential Nifty Low Vol 30 ETF that replicates the Nifty 100 Low Volatility 30 Index in the same proportions. The Nifty 100 Low Volatility 30 Index consists of 30 stocks with least volatility selected from the Nifty 100 index. The weights of the stocks are based on volatility which is measured as standard deviation of stock returns over a one year period. The individual stock weight is capped at 3%. The top three sectors for the index comprises of Software, Personal Care and Cement. The index is rebalanced on a quarterly basis.
According to the press release, by tracking the least volatile stocks in the Nifty 100 Index, the scheme offers wealth creation opportunities with a lower level of volatility. Historically, the Nifty 100 Low Volatility 30 Index has provided returns in the range of 12-16% CAGR* over last 5 years.
(Data Source: MFI Explorer. Data as on February 28, 2021).
“Through ICICI Prudential Nifty Low Vol 30 ETF FOF, an investor gets access to a factor-based smart beta ETF that limits downside risk. Our aim is to help investors to limit the impact of market volatility and to gain exposure to the least volatile bluechip companies across sectors in a simple and easy manner. The scheme allows investors without a Demat account to invest in a smart Beta ETF with Equity taxation through lump sum or SIP,” said Nimesh Shah, MD & CEO, ICICI Prudential AMC.
