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ICICI Prudential MF Launches Alpha Low Vol 30 ETF Fund Of Fund Scheme: Check Details

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With the goal of adding stability to your growth, ICICI Prudential Mutual Fund House has launched the Alpha Low Vol 30 ETF Fund Of Fund Scheme. From September 1, 2021, until September 15, 2021, the new fund offer (NFO) will be available. It is an open-ended fund with an aim for potential growth with multi-style factor-based investing. A systematic investment plan takes multiple factors such as alpha, volatility, quality, etc. into consideration, provides an alpha-generating opportunity with reduced volatility and enhanced diversification are some of the factors to invest in this new fund offering. The fund invests as a factor-based Smart Beta ETF that tracks the Nifty Alpha Low Volatility 30 Index. The underlying index identifies 30 stocks or companies based on a combination of alpha & low volatility from Nifty 100 & Nifty Midcap 50 Index.

 
ICICI Prudential MF Launches Alpha Low Vol 30 ETF Fund Of Fund Scheme

The fund also aims to capture the performance of stocks selected based on the combination of alpha and low volatility. With a blend of excess returns over the benchmark and less price fluctuation than other stocks, the fund aims to generate growth with stability.

The underlying index of Nifty Alpha Low Volatility 30 Index

The scheme is intended to approximate the outcome of a portfolio of stocks chosen for their Alpha and Low Volatility characteristics. The fund's underlying index is as follows:

  • Stocks: From NIFTY 100 & NIFTY Midcap 50
  • No. of Constituents: 30 stocks
  • Weight Derivation: Alpha (50%) & Low Volatility (50%) based on Factor Scores
  • Stock cap: Individual Stock Weight Capped At 5%
  • Rebalancing: Semi-annually in nature.

Portfolio Allocation

The following is the Nifty Alpha Low Volatility 30 Index's portfolio structure:

Top 10 securitiesWeightage (%)
Dabur India Ltd.4.8
Colgate Palmolive (India) Ltd.4.5
Marico Ltd.4.1
Hindustan Unilever Ltd.4.0
Infosys Ltd.3.9
Mindtree Ltd.3.9
Pidilite Industries Ltd.3.8
Wipro Ltd.3.8
Nestle India Ltd.3.8
Britannia Industries Ltd3.7
Source: www.nseindia.com. Data as of July 31, 2021

Sector-wise allocation

Top SectorsIn %
CONSUMER GOODS40.8
IT21.6
PHARMA16.8
CHEMICALS7.2
CEMENT & CEMENTPRODUCTS6.3
INDUSTRIAL MANUFACTURING3
AUTOMOBILE2.7
POWER1.6
Source: www.nseindia.com. Data as of July 31, 2021

Why Choose ICICI Prudential Alpha Low Vol 30 ETF FOF?

According to the ICICI Prudential Fund House, the reasons to invest in Alpha Low Vol 30 ETF FOF are as follows:

  • Provides exposure to multiple factors through a single product.
  • Allows people without a Demat account.
  • account to invest in an ETF through lump sum or SIP.
  • Aims to add stability to growth opportunities.
  • Provides the benefit of Equity Taxation.
  • Counters the cyclicality of a single factor strategy.
  • May exhibit lower performance swings.
 

About the NFO

According to the official announcement of the NFO made by ICICI Prudential Mutual Fund Company, the details of the scheme are as follows:

  • NFO Period: September 1-2021, to September 15, 2021
  • Plans / Options: Plans: ICICI Prudential Alpha Low Vol 30 ETF FOF - Regular Plan - Growth & IDCW & ICICI Prudential Alpha Low Vol 30 ETF FOF - Direct Plan- Growth & IDCW
  • Exit Load: If units purchased or switched in from another scheme of the Fund are redeemed or switched out: upto 10% of the units (the limit) purchased or switched within 1 year from the date of allotment - Nil, in excess of the limit within 1 Year from the date of allotment - 1% of the applicable NAV, after 1 Year from the date of allotment - Nil.
  • Minimum Application Amount: Rs. 1,000/- (plus in multiples of Re. 1)
  • Minimum Switch-in Amount: Rs. 1000 and any amount thereafter
  • Minimum additional application amount: Rs. 500/- and in multiples of Re. 1/-.
  • Minimum additional Switch-in amount: Rs. 500 and any amount thereafter.
  • Benchmark: Nifty Alpha Low Volatility 30 TRI.
  • Listing: The Units of the Scheme will not be listed on any stock exchange.
  • Risk: Very high
  • Fund Manager: Kayzad Eghlim & Nishit Patel
  • MICR Cheques, Electronic Payments & RTGS: MICR cheques, Electronic Payments, and Real-Time Gross Settlement (RTGS) requests will be accepted till the end of business hours up to September 15, 2021.
  • Switch-in: Switch-in requests from equity and other schemes will be accepted up to September 15, 2021 till the cut-off time applicable for switches. Switch-in requests from ICICI Prudential US Bluechip Equity Fund, ICICI Prudential Global Advantage Fund (FOF), and ICICI Prudential Global Stable Equity Fund (FOF) will not be accepted.

Source: www.icicipruamc.com

Story first published: Wednesday, September 1, 2021, 13:56 [IST]
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