New fund offer: ICICI Prudential Mutual Fund is introducing the ICICI Prudential Equity Minimum Variance Fund (the Scheme), an open-ended equity scheme centered around the Minimum Variance Theme. The scheme will be open for subscription from November 18, 2024, to December 2, 2024.
This new scheme aims to create a well-diversified equity portfolio that prioritizes reducing volatility in comparison to the Nifty 50 TRI benchmark index. By focusing on selecting stocks with lower volatility, the Minimum Variance strategy seeks to generate stable and consistent returns, even in times of market turbulence. Investors can benefit from this scheme by aiming for long-term capital appreciation while simultaneously minimising portfolio volatility.
“We are pleased to introduce ICICI Prudential Equity Minimum Variance Fund – a scheme focused on large-cap investments using a minimum variance approach. By prioritizing stocks with lower volatility, the launch of this scheme reflects our defensive stance amidst high valuations, while still leveraging India’s favourable structural and macroeconomic outlook,” said S Naren, ED & CIO at ICICI Prudential Asset Management Company.
Key features
Investment Strategy: The fund focuses on large-cap stocks with low volatility to build a diversified portfolio that aims to minimize risk and achieve capital growth. It employs an active management approach, making it suitable for long-term investors seeking stability in the equity markets.
Benchmark: The fund’s performance will be compared to the Nifty 50 TRI, a broad market index of the top 50 stocks in India.
Defensive Approach: The fund utilizes a minimum variance strategy to reduce volatility, making it an attractive choice for investors seeking stability during market uncertainties.
Risk Management and Diversification: The fund’s strategy involves thorough analysis, effective weight management, and view-based allocation to maintain a balanced portfolio that addresses both risk and return.
Investment Scheme Details:
An open-ended equity scheme based on the Minimum Variance Theme is offered by ICICI Prudential in two variations:
ICICI Prudential Equity Minimum Variance Fund – Direct Plan
ICICI Prudential Equity Minimum Variance Fund – Regular Plan
Available Options:
Investors can choose between the Growth Option and the Income Distribution and Capital Withdrawal (IDCW)* Option.
Minimum Application and Additional Application Amounts:
A minimum initial investment of Rs. 5,000 is required, with subsequent investments starting at Rs. 1,000. Redemption can be made for any amount.
Fees:
There is no entry load. However, an exit load of 1% of applicable NAV applies for redemptions made in less than 12 months. No exit load is charged for redemptions after 12 months.
Benchmark Index:
The fund’s performance is benchmarked against the Nifty 50 TRI.
Investment Options:
Investors can also utilize SIP (Systematic Investment Plan), SWP (Systematic Withdrawal Plan), and STP (Systematic Transfer Plan) for flexible investment strategies.
Target Investors
> Investors looking for long-term capital growth with a priority on risk mitigation.
> Those who are interested in equity investments but are cautious of market fluctuations.
> Individuals who prefer to invest in large-cap stocks with robust corporate governance and stable cash flows.
