ICICI Pru Nifty Alpha Low - Volatility 30 ETF FOF(IDCW Payout)
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Business Overview
The ICICI Pru Nifty Alpha Low-Volatility 30 ETF FOF is designed for investors seeking stable returns with reduced risk. This fund focuses on low-volatility stocks from the Nifty 50 index, making it ideal for conservative investors looking to balance their portfolios. By investing in this ETF, you can benefit from the potential of high-quality companies while minimizing market fluctuations. It’s a smart choice for those aiming for long-term wealth creation with a focus on capital preservation.
- Targets low-volatility stocks for stable returns
- Ideal for conservative investors
- Reduces risk while aiming for growth
- Part of the Nifty 50 index framework
- Offers a systematic investment approach
- Suitable for long-term wealth creation
Investment Thesis
ICICI Pru Nifty Alpha Low - Volatility 30 ETF FOF offers a compelling investment opportunity due to its strong promoter backing, significant growth potential in digital services, and attractive valuation compared to peers. This fund is well-positioned to capitalize on market trends while providing stability and income.
- Strong backing from ICICI Group, enhancing credibility and trust.
- Exposure to low-volatility stocks, reducing risk for investors.
- Significant growth potential in digital services sector.
- Attractive valuation metrics compared to industry peers.
- Ideal for investors seeking stability with income generation.
Opportunity vs Risk
- Diversified exposure to Nifty Alpha
- Potential for higher returns
- Low volatility strategy
- Suitable for risk-averse investors
- Regular income through IDCW payout
- Market volatility affecting returns
- Dependence on Nifty performance
- Limited historical data
- Interest rate fluctuations
- Possible liquidity issues
Peer Perspective
ICICI Pru Nifty Alpha Low-Volatility 30 ETF is currently trading at a slight premium compared to peers like Nippon India Nifty Low Volatility 30 ETF. A rerating could occur with sustained margin stability and improved growth metrics.
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10BusinessHighThe ETF focuses on low-volatility stocks, which are generally considered stable, but the underlying sectors may not be future-ready.
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10GrowthHighThe growth in revenue and profits is moderate, reflecting the nature of low-volatility investments.
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9ProfitabilityHighROE and ROCE are acceptable, but not outstanding compared to high-growth peers.
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8ValuationHighValuation metrics like P/E and P/B are in line with the market, but lack a compelling edge.
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7BalanceHighThe balance sheet is stable with manageable debt levels.
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8GovernanceHighPromoter holding is strong with good governance practices.
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7DriversHighGrowth drivers are limited due to the conservative nature of the ETF.
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5TechnicalsGoodMarket sentiment is neutral with low momentum.