Latest news with #NipponIndiaNifty500LowVolatility50IndexFund
&w=3840&q=100)
Business Standard
29-04-2025
- Business
- Business Standard
New Nippon funds close April 30, experts say tread with caution
Nippon India Asset Management has launched two new index funds, Nippon India Nifty 500 Quality 50 Index Fund and Nippon India Nifty 500 Low Volatility 50 Index Fund on April 16, 2025. Aim is to deliver cost-effective, diversified exposure to the Indian equity market. Market watchers are debating whether these passive products offer enough value for retail investors rushing to invest before the April 30 closing date. Chethan Shenoy, executive director and head of product & research at Anand Rathi Wealth Limited, weighs in, calling for 'cautious optimism' and a deeper understanding of these funds' structures. Two Indices, Two Themes The Quality 50 Index Fund will track top companies from the Nifty 500 that exhibit strong fundamentals --companies with high return on equity (ROE), solid earnings, and low debt. In contrast, the Low Volatility 50 Index Fund targets companies with the least price fluctuation over the past year. 'It focuses on price stability,' Shenoy explains, 'Ideal for investors wary of market swings.' Though passive funds typically boast lower expense ratios, Shenoy warns against equating low cost with high performance. These funds will only rebalance twice a year. Underperformers may stay in the portfolio longer due to this rigid structure. Historical performance has been inconsistent. 'Out of the last six years, these strategies delivered alpha in only three,' he notes. Who Should Invest? Despite a low minimum investment of ~1,000, Shenoy suggests retail investors tread carefully. 'NFOs often lack a proven track record. It's safer to go with funds that have been tested across market cycles,' he advises. Strategy Over Hype
Time of India
25-04-2025
- Business
- Time of India
Nippon India launches two new index funds targeting low volatility and quality stocks amid market uncertainty
These passive investment products track specific factor-based indices. (AI image) Nippon India Mutual Fund has introduced two passive investment funds as straightforward choices for investors navigating through present market instability and sector-wide negative performance. The company has rolled out a pair of open-ended index funds : the Nippon India Nifty 500 Low Volatility 50 Index Fund alongside the Nippon India Nifty 500 Quality 50 Index Fund , each utilising factor investment methodology. These New Fund Offers (NFOs) have commenced and will continue accepting subscriptions until April 30, 2025. "These funds are positioned as a hedge in the current volatile market environment," said Nippon India, highlighting their intention to provide steady returns and stability for investors with long-term objectives. These passive investment products track specific factor-based indices. They deliver advantages including portfolio diversification, reduced expense ratios, and clear investment visibility through index replication. The Nifty 500 Low Volatility 50 Index Fund aims to invest in the 50 companies showing minimal volatility within the Nifty 500, providing protection against market fluctuations. The fund utilises quantitative analysis to identify stocks demonstrating the lowest price variations over a one-year period. "The low volatility strategy has provided significant historical returns and has proved to be an anomaly to the theory of higher risk equals higher returns," the fund house noted, citing its resilience during previous periods of market turmoil. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Google Brain Co-Founder Andrew Ng, Recommends: Read These 5 Books And Turn Your Life Around Blinkist: Andrew Ng's Reading List Undo The Nifty 500 Quality 50 Index Fund, the second offering, focuses on selecting financially robust companies through quality-focused parameters. The selection process evaluates key financial indicators including return on equity (ROE), debt-to-equity ratio, and earnings per share (EPS) stability to select the top 50 quality stocks from the broader index. "Factor investing combines passive and active methods of investing, offering a rule-based, data-driven approach to portfolio construction," Nippon India said. These funds are being introduced when investors are seeking defensive investment options amidst ongoing market volatility and economic uncertainties. Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
