ICICI Prudential Alpha Low Vol 30 ETF FoF: NFO closes on 15 September 2021

This is an open-ended fund of funds (FoF) scheme which will invest in units of ICICI Prudential Alpha Low Vol 30 ETF.

Good to knowWhat are alpha and beta in investing? Alpha refers to the returns generated by an asset in excess to its benchmark index’s returns. For instance, if shares of an auto company rise by 10% in a month against an 8% rise in the benchmark Nifty Auto Index, it means the stock has generated an alpha of 2%. The higher the alpha of an asset, the better it is, and anything more than zero is considered to be a good alpha. On the other hand, Beta is a parameter to evaluate an asset’s volatility compared to its benchmark index. A beta of more than 1 means that the asset is more volatile than its benchmark. Conversely, if it’s lower than 1, then it is less volatile than the benchmark. Together, these two metrics help an investor understand the risk (volatility) and reward (higher returns) related to an asset.

Investment objective

The FoF scheme will invest in ICICI Prudential Alpha Low Vol 30 ETF’s (exchange-traded fund) units. This underlying ETF tracks the Nifty Alpha Low Volatility 30 Index which aims to capture the performance of stocks that are selected based on a combination of alpha and low volatility (beta). The Nifty Alpha Low Volatility 30 Index includes stocks that have the potential of giving benchmark beating returns. And, at the same time, witness less fluctuation in stock prices.

The top five constituents of the Nifty Alpha Low Volatility 30 Index are Dabur India, Colgate Palmolive, Marico, Hindustan Unilever and Infosys. This index has beaten the broader market indices like Nifty50 and Nifty100 in eight out of the 11 years, until 2020.

Basically, this smart beta EFT provides exposure to companies that have low volatility but give market-beating returns. This fund is suitable for investors who are seeking long-term wealth creation solutions.

** Click here to invest in this NFO**

Asset allocation

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| Instrument | Minimum | Maximum | Risk profile |
| Units of ICICI Prudential Alpha Low Vol 30 ETF | 95 | 100 | Medium to high |
| Units of liquid schemes/ money market instruments (with maturity not exceeding 91 days), including Tri-Party Repo | 0 | 5 | Low to medium |

Scheme details

| Name | ICICI Prudential Alpha Low Vol 30 ETF FOF |
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| Type | An open ended fund of funds scheme investing in ICICI Prudential Alpha Low Vol 30 ETF |
| Category | Equity-fund of fund |
| Expense ratio | 1% |
| Benchmark | Nifty Alpha Low Volatility 30 TRI |
| Load structure | Entry: Nil Exit: Before 12 months: 1% After 12 months: Nil |
| Fund manager | Kayzad Eghlim and Nishit Patel |
| Options | Growth plan and income distribution cum capital withdrawal plan |
| Minimum application amount (during NFO) | ₹1,000 and in multiples of ₹1 thereafter |
| Additional application amount | ₹500 and in multiples of ₹1 thereafter |

** Click here to invest in this NFO**

| This product is suitable for investors who are seeking*: | Riskometer |
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| Long term wealth creation An Open-ended Fund of Funds scheme with the primary objective to generate returns by investing in units of ICICI Prudential Alpha Low Vol 30 ETF | |

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Note: The above information has been sourced from the Scheme Information Document provided by ICICI Prudential Asset Management Limited. To read the entire document, ** click here**.

Disclaimer

RKSV Securities India Private Limited (ARN/Distributor

107930; brand name Upstox) is the distributor of the mutual fund. Please consult your investment advisor before investing.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.