New Delhi. Every week many IPOs come into the stock market and people are eager to invest in them. Similarly, new funds keep coming into the mutual fund market which are called New Fund Offer (NFO). Like IPO, NFOs are also launched for listing for the first time and those who invest in it initially also get a lot of benefit. One such NFO has been launched by ICICI Prudential Mutual Fund, which has been named ICICI Prudential Equity Minimum Variance Fund.

This NFO of ICICI Prudential is an open-ended equity scheme that follows a minimum volatility theme. Its objective is to achieve capital appreciation in the long term by investing in equity and equity-related instruments while reducing the volatility of the portfolio compared to the scheme's benchmark Nifty 50 TRI. This new scheme presents a new approach to investing, which uses a low-volatility strategy for asset selection and portfolio construction. This NFO is open from November 18 and will close on December 2.

ICICI Prudential Asset Management Executive Director and Chief Investment Officer S Naren said, "We are pleased to introduce ICICI Prudential Equity Minimum Variance Fund. The launch of this scheme reflects our defensive approach by preferring low-volatility stocks amid high valuations of stock markets. It also
works towards taking advantage of India's favorable structural and macroeconomic outlook."

ICICI Prudential Minimum Variance Fund's investment strategy focuses on large capitalization companies (large-cap stocks) with higher weightage to low volatility stocks. It creates a diversified
portfolio using in-depth analysis, weight management, and approach-based investing that focuses on reducing volatility.

Great returns in the long term
This scheme is best suited for investors who want good capital appreciation in the long term, those who want to invest in equities but are concerned about high market volatility, and those who want to invest in large-cap companies with good corporate governance and high cash flow. Arthlabh data shows that when the market has been less volatile, Nifty Midcap 150 TRI has given investors a return of 18.1 percent CAGR. Similarly, the Nifty Smallcap 250 TRI index has given a return of 16.9 percent CAGR, and Nifty 100 TRI has given a return of 15 percent CAGR. Nifty 50 TRI has also given profits at a rate of about 15 percent CAGR.