Groww Nifty 500 Low Volatility 50 ETF
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Investing Reference
Trading Reference
AI Probability Statement
Probability Statement
The Groww Nifty 500 Low Volatility 50 ETF is currently trading near a strong support level, with the 50-day EMA indicating a bullish trend. If it breaks above the resistance level, there is a potential for upward momentum. However, if it fails to hold the support, a downside risk is present.
Probability estimates are technical-context statements, not investment advice.
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Business Overview
The Groww Nifty 500 Low Volatility 50 ETF is designed for investors seeking stability and lower risk in their equity investments. This ETF focuses on the 50 least volatile stocks from the Nifty 500 index, making it an ideal choice for conservative investors or those new to the stock market. It matters as it provides a balanced approach to equity exposure, aiming for steady returns while minimizing market fluctuations. With its diversified portfolio, it helps in wealth creation over the long term.
- Focuses on low volatility stocks
- Ideal for conservative investors
- Diversified exposure to Nifty 500
- Aims for steady returns
- Minimizes market fluctuations
Investment Thesis
The Groww Nifty 500 Low Volatility 50 ETF presents a compelling investment opportunity, backed by a credible promoter group. With the ongoing digital services boom, this ETF is well-positioned for growth. Its attractive valuation compared to peers further enhances its appeal, making it a strategic addition to any investor's portfolio.
- Strong backing from a reputable promoter group ensures stability and credibility.
- Riding the wave of digital services growth, tapping into increasing retail investor participation.
- Attractive valuation compared to peers, presenting a potential for better returns.
- Focus on low volatility offers a safer investment avenue in uncertain markets.
- Diversified exposure to 50 low volatility stocks enhances risk-adjusted returns.
Opportunity vs Risk
- Diversification across 500 stocks
- Low volatility for stable returns
- Potential for long-term growth
- Attractive for risk-averse investors
- Market fluctuations can impact returns
- Limited exposure to high-growth sectors
- Expense ratios may affect profits
- Economic downturns could hurt performance
Peer Perspective
The Groww Nifty 500 Low Volatility 50 ETF trades at a slight premium compared to peers like Nippon Nifty Low Volatility 30 ETF and ICICI Nifty Low Volatility 50 ETF; a rerating could occur with improved margin stability.
Future Outlook
The Groww Nifty 500 Low Volatility 50 ETF presents a promising opportunity for investors seeking stability, provided the fund maintains disciplined execution and cost control in its management strategy.
AI FAQs for Retail Users
- Q: What is the Groww Nifty 500 Low Volatility 50 ETF?A: It's an exchange-traded fund that tracks the performance of low volatility stocks from the Nifty 500 index.
- Q: Who should consider investing in this ETF?A: Investors seeking exposure to low volatility stocks for potentially reduced risk in their portfolio.
- Q: How can I invest in this ETF?A: You can invest through a brokerage account that offers access to Indian stock exchanges.
- Q: What are the risks associated with this ETF?A: Like all investments, it carries market risk, including potential loss of capital.
- Q: Is there a minimum investment amount for this ETF?A: Yes, the minimum investment is typically one unit of the ETF, subject to brokerage policies.
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10BusinessHighThe ETF focuses on low volatility stocks, which are generally considered stable but may lack high growth potential.
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10GrowthHighThe underlying index has shown moderate growth, but consistency is variable across sectors.
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8ProfitabilityHighROE and ROCE are decent, but cash flow generation is inconsistent across the ETF's holdings.
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9ValuationHighValuation metrics are in line with peers, but the low volatility nature may limit upside.
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7BalanceHighThe ETF's underlying stocks generally have low debt levels, but liquidity varies.
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6GovernanceGoodPromoter holding is reasonable, but some concerns about transparency in disclosures.
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5DriversGoodCatalysts for growth are limited; execution risks are present due to market volatility.
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1TechnicalsLowMarket sentiment is currently neutral, with low trading volumes affecting liquidity.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 70/100
- Growth Potential: 65/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100