KIRTAN SHAH: This isn’t an NFO in that sense, for my part is as a result of there may be already a fund which is current available in the market on which this fund of fund is coming forward. This shouldn’t be checked out as a standard or a denominated NFO like another NFO which is popping out available in the market. Now, predominantly whereas we try to have a look at the ICICI Nifty Low Volatility 30 ETF, the index has been in existence for 4 years, the ETF has been in existence for 3 and a half years however the index as a result of it’s a wise play, it has been reconstituted again to 2005. Now if any person like me has to have a look at this product, after all, like Chintan additionally stated that is meant to ensure that buyers who’re taking a look at low volatility are those who come on this product.
So if you need to take a look at this specific product I’ll take a look at it in three brackets. The primary, has the index in itself on which the ETF or the FOF goes to be primarily based, carried out effectively since 2005 or not and since this can be a low volatility product has it been in a position to defend the draw back, which to a higher extent is the enchantment for which individuals are going for, on this product. Very importantly as a result of it’s an ETF, how does the monitoring error of the fund carry out? So, if you happen to take a look at the entire three knowledge, I believe this can be a good fund. So, let me offer you some stats and knowledge factors. Whereas we appeared on the constituted index from 2005, we noticed a few areas the place the Nifty fell so let’s say when the Nifty fell, within the calendar yr 2008 by 53.1%, this specific product fell solely 42.3% on an index degree. Equally, in 2011 when the Nifty 24.9%, this product fell solely 12% and in 2015 when Nifty fell 1.3% within the calendar yr, this product outperformed with a optimistic 9.8% return. So, does the index actually defend draw back? The reply is sure. Now one other reply to have a look at is, can the index additionally outperform in good instances? If we take a look at calendar yr 2009, when Nifty 100 gave 84.9% return this product gave 92.9%. Equally, there are a number of situations that I can share the place this product has additionally performed effectively when the markets are additionally going up. So, does it defend the draw back and in addition carry out effectively when the markets are going up? The reply is sure, level primary. Level quantity two, I believe if you happen to take a look at it from a monitoring error standpoint, this product has given a monitoring error, anyplace within the vary of 0.3-0.6%, as a result of that is quarterly rebalancing and there may be some shopping for and promoting that may maintain occurring. From that perspective, if that is going to be quarterly rebalanced, I believe a 0.3% or a 0.6% of monitoring error is sweet. So general, wanting on the final 16 years, the returns on this specific product has been 8.4% CAGR versus Nifty 100 of 14.8%. That has come together with decrease volatility, so the usual deviation of this product is eighteen versus 22 on Nifty 100 and it additionally protects the max drawdown from a monetary yr standpoint. This index that we’re speaking about has the utmost drawdown of over 49percentwhereas for Nifty 100 has a drawdown of 61%. So, taking a look at all of those three issues, I believe the index is absolutely meant for any person who needs to take low volatility and I don’t see a purpose why this shouldn’t be a match for any person who’s taking a look at low risky funding of their portfolio.
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