Nippon India NFO: The turmoil going on in the financial markets at the present time has put investors in a state of worry. Amidst negative returns and increasing volatility, investors are now looking for schemes that can provide stable returns with low risk. In this context, Nippon India Mutual Fund has launched two new fund offers (NFOs), which are being considered attractive for investment in the current volatile environment.
Both these funds of Nippon India, Nippon India Nifty 500 Low Volatility 50 Index Fund and Nippon India Nifty 500 Quality 50 Index Fund, are based on the principle of factor investing. Factor investing is a strategy in which special factors such as quality, stability, risk, value and momentum are taken into account while selecting companies. This strategy provides investors with a strong and research-based investment approach, which helps them get stable returns despite market volatility.
Difference between the two funds
There are some key differences between Nippon India Nifty 500 Low Volatility 50 Index Fund and Nippon India Nifty 500 Quality 50 Index Fund. The Low Volatility Fund will invest in 50 companies that show the lowest volatility in the Nifty 500 index. This volatility is measured based on the daily prices of the last one year. Historically, it has been observed that low volatility-based strategies give investors stable returns during market fluctuations and outperform traditional strategies.
On the other hand, Nippon India Nifty 500 Quality 50 Index Fund will invest in companies that have strong financials and low debt-to-equity ratio, high profitability and stability in earnings. The companies in this fund will be selected based on metrics such as return on equity (ROE), debt levels and stability of EPS (earnings per share) growth.
Last date of investment and benefits
Both the funds are open-ended index funds and offer investors benefits such as diversification, transparency and low expense ratio. The application for these NFOs will remain open till April 30, 2025, and interested investors can invest in these funds through SIP (Systematic Investment Plan) or Lumpsum. Both these funds of Nippon India are emerging as attractive options for investors in the current volatile environment. They not only reduce risk but also provide a strong and rule-based investment strategy.
By
By
