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ICICI Prudential Mutual Fund has launched 'Alpha Low Vol 30 ETF' an open-ended index exchange traded fund.
The offering aims to provide returns that closely correspond to the returns of Nifty Alpha Low-Volatility 30 Index.
The New Fund Offer will be open for învestment between August 3 and 10. The units of this ETF will be listed on NSE and BSE.
The new ETF of ICICI MF intends to counter the cyclical theory of single factor index structure strategy. The index provides exposure to a portfolio of stocks from various sectors, based on top combination of alpha and low volatility.
Nimesh Shah, MD & CEO, ICICI Prudential AMC said the new ETF is based on a multifactor smart beta strategy that addresses high sector concentration of single factor based index strategies through diversification of factor-risk exposures and exhibiting lower performance swings.
Through this ETF, an investor gets access to smart beta strategy which is rule-based and cost-effective, he said.
Investors can achieve greater diversification and become less reliant on any one factor to drive returns. Owing to these benefits, globally too, investors are moving to multiple factor strategies.
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