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 know What 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.

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Asset allocation

Instrument	Allocation (% of total assets)		Risk profile
	Minimum	Maximum
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
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

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This product is suitable for investors who are seeking*:	Riskometer
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.