Mutual fund
In recent months, a huge upheaval in the stock market has also made mutual fund investors confused. Due to this, investors are now looking for quality and low volatile funds. In view of this, two new funds of Nippon India Mutual Fund have been introduced. The new NFO Nifty 500 low volatility 50 index funds and the Nifty 500 Quality 50 Index Fund follow a factor investing approach. These funds invest in less volatile and good quality stocks, which provide them protection in existing unstable markets. These NFOs are still open and will be closed on 30 April.
In this way this fund cum volatile
Nippon India Nifty 500 low volatility 50 index funds are based on the concept of low volatility investment and the Nifty invests in 50 companies from 500 index, which thus provides better risk adjusted returns. The fund will select the top 50 companies based on the low volatility score calculated by tracking 1 year of previous prices of 1 year. The low volatility strategy has provided important historical returns and has proved to be an anomaly for the principle of high risk equal high returns. The important thing is that the low volatility strategy has proved better to most other strategies during the upheaval period.
Second NFO Nippon India Nifty 500 Quality 50 Index Fund is also based on Factor Investing. The factor connects the passive and active methods of investment investment and follows a rule-based approach when considering one or several factors to choose a part of the index that includes smart beta factors such as alpha, dividend yield, low volatility, equal weight, value, speed and quality, which are the factors that are considered for this NFO.
Disclaimer: This article is written only for the purpose of information. Before any type of investment or before taking financial risks, consult your financial advisor. India TV will not be responsible for any type of risk.
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