Mirae Asset Mutual Fund has launched Mirae Asset Nifty 100 Low Volatility 30 ETF, which aims to measure the performance of low volatile securities in the large market capitalization segment. During the New Fund Offer (NFO), investors can invest a minimum of Rs 5,000, and the scheme will reopen for continuous sale and repurchase on March 27, 2023. The Nifty 100 Low Volatility 30 index provides alternate sectorial exposure, generates higher risk-adjusted returns over a longer horizon, and has relatively lower drawdown compared to other factor indices. Smart Beta ETFs like this are gaining popularity globally as they potentially combine the benefits of both active and passive investing, generating alpha by using different factors.
ETF Newz Says:
This fund may be used by investors who are cautious about portfolio volatility and downside risk and are keen to generate long-term wealth with relatively lower risk.