ICICI Prudential Mutual Fund has introduced a new investment option called the ICICI Prudential Equity Minimum Variance Fund.
This open-ended equity scheme focuses on a minimum variance strategy to reduce volatility while aiming for long-term capital growth.
Fund Objectives
The primary goal of this fund is to generate long-term capital growth by investing in equity and equity-related instruments.
It seeks to achieve this through a diversified portfolio that aims to reduce volatility compared to the Nifty 50 TRI.
Subscription Details
The New Fund Offer (NFO) for this scheme is open for subscription and will close on December 2.
Innovative Investment Strategy
The scheme follows an innovative low variance approach for selecting assets and building the portfolio. This means that the fund will prioritize investments that show lower volatility while still aiming for strong returns.
The scheme will be benchmarked against the Nifty 50 TRI and will be managed by Vaibhav Dusad and Nitya Mishra.
Minimum Investment Requirements
1) The minimum investment amount is Rs 5,000 (in multiples of Rs 1).
2) For systematic investment plans (SIPs), the minimum application amount for daily, weekly, fortnightly, or monthly SIPs is Rs 100 (in multiples of Rs 1), with a minimum of six installments.
3) For quarterly SIPs, the minimum amount is Rs 5,000 (in multiples of Rs 1), with a minimum of four installments.
Exit Load Details
1) An exit load of 1% will apply if the investment is redeemed or switched within 12 months from allotment.
2) No exit load will be applied if the investment is redeemed or switched after 12 months.
Focus on Large-Cap Investments
S. Naren, Executive Director and Chief Investment Officer at ICICI Prudential Asset Management Company, highlighted that the new scheme focuses on large-cap investments using a minimum variance strategy.
The goal is to invest in low-volatility stocks, reflecting a more defensive approach amid high market valuations. The fund will use detailed analysis and weight-based allocation to build a diversified portfolio.
Who Should Invest in This Fund?
This fund is ideal for investors who:
1) Seek long-term capital growth.
2) Are concerned about market volatility but want to invest in equity.
3) Prefer to invest in large-cap companies with strong governance and high cash flows.
