The New Fund Offer (NFO) is open for subscription from 26th April 2024 to 10th May 2024.
Key Highlights:
The scheme will invest 95-100 per cent in equity and equity-related securities representing the Nifty Alpha Low Volatility 30 Index.
The index features 30 stocks selected from a pool of top 150 listed stocks on NSE, with equal consideration given to both Alpha and Low Volatility factors. The index has outperformed Nifty 100 TRI by over 5per cent in the last 10 years.
When looking at 5-year and 10-year rolling returns, the Nifty Alpha Low Volatility 30 Index has beaten the Nifty 100 TRI index 88per cent of the time and 100per cent of the time, respectively, since April 2005. It has produced excess returns of 5.2per cent and 5.9per cent on average over these periods.
“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,” Radhika Gupta, MD & CEO, Edelweiss Mutual Fund ,said.
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 per cent in equity and equity-related securities representing the Nifty Alpha Low Volatility 30 Index, with 0-5per cent 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 Bhavesh Jain, Co-Head- Hybrid & Solutions Funds.
Factor-weighting and semi-annual rebalancing will occur in June and December, respectively, for the index methodology. The past year's low volatility and high Jensen Alpha are what determine the stock weights. Stocks that are not F&O and have a listing history of less than a year are not taken into account when making an investment.
