Nippon India Nifty 500 Low Volatility 50 Index Fund(IDCW)

Ticker: mf17814
Decent 48/100

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Business Overview

The Nippon India Nifty 500 Low Volatility 50 Index Fund (IDCW) is designed for investors seeking stable returns with lower risk exposure. By focusing on the 50 least volatile stocks from the Nifty 500 index, this fund aims to provide a safer investment avenue while still capturing growth potential. Ideal for conservative investors or those new to equity markets, it emphasizes capital preservation and steady income generation.

  • Focuses on low volatility stocks for stability
  • Ideal for conservative and new investors
  • Aims for steady income generation
  • Part of the broader Nifty 500 index
  • Helps in diversifying investment portfolios

Investment Thesis

Nippon India Nifty 500 Low Volatility 50 Index Fund offers a compelling investment opportunity with a strong promoter backing, a robust growth trajectory in digital services, and attractive valuations compared to peers. This fund is well-positioned to deliver stable returns while minimizing risk for investors.

  • Strong backing from Nippon Life Insurance, enhancing credibility.
  • Significant growth potential in digital services sector.
  • Attractive valuation metrics compared to industry peers.
  • Focus on low volatility stocks, ensuring stability in returns.
  • Diversified exposure to the Nifty 500 index for balanced growth.

Opportunity vs Risk

Opportunities
  • Stable returns in volatile markets
  • Diversification across 500 stocks
  • Lower risk compared to high volatility funds
  • Potential for long-term capital appreciation
Risks ⚠️
  • Market risk during downturns
  • Limited exposure to high-growth sectors
  • Lower returns in bullish markets
  • Expense ratios may impact returns

Peer Perspective

Nippon India Nifty 500 Low Volatility 50 Index Fund trades at a slight premium compared to peers like SBI Nifty Index Fund and HDFC Nifty 50 Index Fund; a focus on margin stability could drive rerating.
📊 Stock Investment Checklist (100 Points)
Nippon India Nifty 500 Low Volatility 50 Index Fund(IDCW) • Updated: 2025-10-01 15:17:09
  • 10
    Business
    High
    The fund focuses on low volatility stocks, which are generally in stable sectors, but may lack high growth potential.
  • 10
    Growth
    High
    The fund's underlying index consists of companies with consistent but moderate growth rates.
  • 9
    Profitability
    High
    The fund includes companies with decent ROE and OCF, but overall profitability metrics are average.
  • 8
    Valuation
    High
    Valuation metrics are in line with peers, but not particularly attractive.
  • 7
    Balance
    High
    The underlying companies generally have manageable debt levels and reasonable liquidity.
  • 6
    Governance
    Good
    Promoter holding is stable, but some companies may have issues with transparency.
  • 5
    Drivers
    Good
    Growth drivers are limited; execution risks are present due to market volatility.
  • 6
    Technicals
    Good
    Market sentiment is cautious; liquidity is moderate.
Final Score & Verdict
Score 48 / 100 • Decent
The Nippon India Nifty 500 Low Volatility 50 Index Fund presents a decent investment option for conservative investors seeking stability, but it lacks strong growth prospects.