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Highlights:

* An open-ended FOF scheme investing in ICICI Prudential Alpha Low Volatility 30 ETF

* ICICI Prudential Alpha Low Vol 30 ETF invests in Nifty Alpha Low Volatility 30 Index which consists of 30 stocks selected from Nifty 100 and Nifty Midcap 50

* Provides exposure to a portfolio of stocks selected based on top combination of Alpha and Low Volatility

* Suitable for investors seeking exposure to a multi-factor strategy in a cost-efficient manner

* Minimum investment required during NFO: Rs. 1,000 (plus in multiple of Re. 1/-)

Mumbai : ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Alpha Low Vol 30 ETF FOF, an open ended FOF scheme investing in ICICI Prudential Alpha Low Vol 30 ETF. The offering aims to provide returns before expenses that closely correspond to the total return of the underlying index, that is, Nifty Alpha Low Volatility 30 TRI, subject to tracking errors.

The New Fund Offer (NFO) opens on September 01, 2021, and closes on September 15, 2021. The benchmark for this FOF is Nifty Alpha Low Volatility 30 TRI.

Speaking on the launch of the product, Mr. Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC said, “Multi-Style Factor based funds, also known as Smart Beta Strategy funds, are gaining popularity among investors globally for the synergies of benefits it has to offer in terms of enhanced diversification, reduced volatility, alpha generating opportunities, etc. ICICI Prudential Alpha Low Vol 30 ETF FOF provides investors exposure to a combination of alpha generation opportunities with reduced volatility by investing in ICICI Prudential Alpha Low Vol 30 ETF. This multi-style factor exposure endeavors to provide growth with stability to its investors. Investors looking to create wealth over long term via multi-style factor strategy may opt to invest in ICICI Prudential Alpha Low Vol 30 ETF FOF.”

Through this FOF, investors can access a portfolio of stocks from various sectors, based on top combination of alpha and low volatility. It intends to counter the cyclical theory of single factor index structure strategy. While investing through FOF, an investor without a Demat account too can invest in an ETF through lumpsum or SIP.

Why should investors consider ICICI Prudential Alpha Low Vol 30 ETF FOF?

* Provides exposure to multiple factors through a single index product

* Counters the cyclicality of single factor index strategy

* Allows people without a Demat account to invest in an ETF through lumpsum or SIP.

* Opportunity to invest in large and midcap companies

* Smart beta ETF that invests in low volatile companies/stocks that can help is generating alpha

* Can exhibit less performance swings due to index nature of low volatility

About the Index

The Nifty Alpha Low Volatility 30 index consists of 30 stocks selected from Nifty 100 and Nifty Midcap 50. The weights of the stocks are derived from alpha and low volatility factor scores with individual stock weight capped at 5%. The index methodology is factor weighted and re-balanced semi-annually. The top three sectors in the index are Consumer Goods (40.8%), IT (21.6%) and Pharma (16.8%). The index has outperformed the broad market indices 8 out of 11 times until 2020. Data Source: MFI Explorer. Data as on August 18, 2021.

Performance of indices over various time periods

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