Home / Mutual Funds / News /  Nippon India MF launches Nifty Alpha Low Volatility 30 Index Fund
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Nippon India Mutual Fund has launched a Nifty Alpha Low Volatility 30 Index Fund. The new fund offer (NFO) will be open from 1 to 12 August. 

As the name suggests, the index fund will replicate the returns of the Nifty Alpha Low Volatility 30 TRI (total return index). This will provide investors exposure to two factors – Alpha and Low Volatility – through one index.

The minimum investment during the NFO is 1,000 and in multiples of 1 thereafter.

The index consists of the top 30 stocks selected from the Nifty 100 and the Nifty Midcap 50 based on factor score of Alpha (50%) and Low Volatility (50%) using the previous one year’s prices. The weight of the stocks are derived from Alpha and Low Volatility factor scores with individual stock weight capped at 5%. Only stocks available for trading in the derivatives segment (F&O) and those with a minimum listing history of one year will be considered for inclusion in the index. The index will be rebalanced twice a year.

As of June 30, the Index had returned minus 16% year to date and minus 5% over one year. The Index return since inception has been almost 17% (all returns mentioned here are price returns only). 

As of June end, the top constituents of the Nifty Alpha Low Volatility 30 Index were Nestle India, Britannia Industries, Sun Pharmaceutical Industries, SRF and NTPC. These together accounted for almost 21% weight. In terms of sector exposure, FMCG accounted for the largest share at around 31%. This was followed by information technology at 10%, Healthcare at over 9%, Power at 7.7% and Chemicals at just over 7%.

ICICI Prudential Mutual Fund too has a scheme based on the same factor index. The fund house offers a Nifty Alpha Low Volatility 30 ETF and a fund of fund (FOF) investing in this ETF, launched in September 2021.

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