By Admin 
The ongoing ups and downs in financial markets has worried investors. Between negative returns and increasing instability, investors are now looking for options that can give stable returns with low risk. In this episode, Nippon India Mutual Fund has launched two new fund offers (NFO), which are considered very attractive for investment in the current unstable environment.
NFO is based on the principle of factor investing
Both these funds are based on the principle of funds, Nippon India Nifty 500 low volatility 50 index funds and Nippon India Nifty 500 Quality 50 Index Fund, Factor Investing. Factor Investing is the strategy in which specific factors such as quality, stability, risk, price and momentum for selection of companies are taken into consideration.
What is the difference between both funds?
The low volatility funds will invest in 50 companies that display the lowest instability in the Nifty 500 index. This instability is measured based on daily one year of daily prices. History is witness that low volatility-based strategies have given stable returns to investors at the time of market turmoil and have performed better than other traditional strategies.
At the same time, quality 50 index funds will invest in companies that are financially strong and whose debt-to-equity ratio is low, profitability is high and income stability. In this, shares will be selected on the basis of metrics like return (ROE) on equity, debt level and EPS growth.
Can invest till 30 April
Both funds are open-ended index funds and provide benefits to investors such as diarrhea, transparency and low spending ratio. These NFOs will remain open till April 30, 2025 and interested investors can invest in them through SIP or Lampsam.
In the current unstable environment, where safe and stable returns have become priority for investors, both these funds of Nippon India are coming out as an attractive option. They not only reduce the risk but also provide a strong, rule-based investment strategy.
Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)
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