New ICICI Pru Fund focuses on large caps, low volatility for steady returns

ICICI Prudential Mutual Fund has announced the launch of the ICICI Prudential Equity Minimum Variance Fund (the Scheme), an open ended equity scheme following the Minimum Variance Theme.

This scheme is designed to provide investors with a way to achieve long-term capital appreciation while minimizing portfolio volatility. 

 

The scheme opens on November 18, 2024, and closes on December 2, 2024.

 

Fund’s Strategy Focuses on Lower Volatility

The primary goal of the new scheme is to construct a diversified equity portfolio with a focus on minimizing volatility compared to the benchmark index, the Nifty 50 TRI. The Minimum Variance strategy targets stocks that exhibit lower volatility, thus aiming for steadier, more predictable returns even during market fluctuations.

 

Key Features of the Fund: 

Investment Focus: The fund targets large-cap stocks with low volatility, aiming to construct a diversified portfolio that minimizes risk while striving for capital growth. The fund will follow an active management strategy, making it ideal for long-term investors seeking stability in equity markets.

 

Benchmark: The fund’s performance will be measured against the Nifty 50 TRI, which represents a broad market index of the top 50 stocks in India.

 

Defensive Investment Strategy: The fund’s minimum variance strategy is designed to reduce volatility, making it an attractive option for investors looking for stability in times of market uncertainty.

 

Diversification and Risk Management: The fund’s strategy includes deep analysis, weight management, and view-based allocation, ensuring a diversified portfolio that balances risk and return.

 

Who Should Invest in This Fund?

• The ICICI Prudential Equity Minimum Variance Fund is tailored for investors who:
• Seek long-term capital appreciation with a focus on reducing risk.
• Are interested in equity investments but wary of market volatility.
• Prefer investing in large-cap stocks with strong corporate governance and solid cash flows.

 

 “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.

 

Fund’s Key Features

Type of Scheme: An open-ended equity scheme following the Minimum Variance Theme.

 

Plans:

ICICI Prudential Equity Minimum Variance Fund – Direct Plan

ICICI Prudential Equity Minimum Variance Fund – Regular Plan

 

Options Available:

Growth Option

Income Distribution cum Capital Withdrawal (IDCW)* Option

 

Minimum Application Amount:

 

Rs. 5,000 (plus in multiples of Re. 1)

Minimum Additional Application Amount:

 

Rs. 1,000 (plus in multiples of Re. 1)

Minimum Redemption Amount: Any amount.

 

Entry Load: Not applicable.

 

Exit Load:

 

Less than 12 months: 1% of applicable NAV

More than 12 months: Nil

Benchmark Index: Nifty 50 TRI

 

SIP / SWP / STP: Available for flexible investment options