Edelweiss Mutual Fund has launched the Nifty Alpha Low Volatility 30 Index Fund. The multi-factor index fund will include 30 stocks selected from a pool of top 150 listed stocks. These stocks have recently outperformed the broader market yet are relatively less volatile. The New Fund Offer (NFO) of the scheme will be from April 26 to May 10. The Nifty Alpha Low Volatility 30 Index Fund is designed to invest primarily (95-100%) in equity and equity-related securities along the lines of the Nifty Alpha Low Volatility 30 Index. "Since April 2005, the Nifty Alpha Low Volatility 30 Index has outperformed the Nifty 100 TRI index, surpassing it 88% of the time on a 5-year rolling return basis and 100% of the time on a 10-year rolling return basis. Over these periods, it has delivered average excess returns of 5.2% and 5.9%," the mutual fund house said in a note. Top highlights of the fund > The scheme will invest 95-100% in equity and equity-related securities representing the Nifty Alpha Low Volatility 30 Index. > It scheme will be benchmarked against Nifty Alpha Low Volatility 30-TRI and will be managed by Bhavesh Jain. > The scheme will offer regular and direct plans with growth and Income Distribution cum Capital Withdrawal (IDCW) options. > The minimum investment amount for daily, weekly, fortnightly, monthly, and quarterly SIP will be Rs 100 and in multiples of Rs 1 thereafter. > The index methodology will be factor-weighted and rebalanced semi-annually in June and December, respectively. > The fund will allocate 0-5% to debt and money market instruments, in a bid to ensure a balanced approach to wealth accumulation. Who should choose the fund? Investors looking for long-term capital appreciation and want passive investment in equity and equity-related securities replicating the composition of the Nifty Alpha Low Volatility 30 Index can go for this fund. The principal invested in the scheme will be at “very high” risk according to the riskometer of the scheme. “This fund is an ideal solution for investors seeking to invest in large-cap oriented strategy which can outperform the broader market. This multi-factor approach, blending Alpha and Low-Volatility factors, aims to deliver performance while mitigating volatility, thereby enhancing risk-adjusted returns for investors. Edelweiss AMC has established itself as a leader in the passive funds category, managing the largest portfolio of passive debt funds. The introduction of this new equity index fund further bolsters our product line-up in the equity passive fund segment,” said Radhika Gupta, MD & CEO, Edelweiss Mutual Fund.
