Edelweiss Asset Management Limited (EAMC/EMF), one of India's fastest-growing AMCs, has launched a Nifty Alpha Low Volatility 30 Index Fund. The New Fund Offer (NFO) opens on 26th April 2024 and closes on 10th May 2024. The multi-factor index fund comprises 30 stocks selected from a pool of top 150 listed stocks, that have recently outperformed the broader market yet are relatively less volatile.
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%, respectively.
Speaking about the launch, Ms. Radhika Gupta, MD & CEO, Edelweiss Mutual Fund said, "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."
The scheme offers regular and direct plans both with growth and Income Distribution cum Capital Withdrawal (IDCW) options. The scheme will be investing 95-100% in equity and equity-related securities representing the Nifty Alpha Low Volatility 30 Index, with 0-5% allocated to debt and money market instruments. The minimum investment amount for daily, weekly, fortnightly, monthly, and quarterly SIP will be Rs 100 and in multiples of Rs 1 thereafter. The scheme would be managed by Mr. Bhavesh Jain, Co-Head- Hybrid & Solutions Funds.
The index methodology will be factor-weighted and rebalanced semi-annually in June and December respectively. Stock weights are determined by high Jensen Alpha and Low Volatility over the past year. Non-F&O stocks and those with less than one year of listing history are excluded from investment consideration. |
