According to the statement made by the ICICI Prudential Mutual Fund on Wednesday, a new exchange-traded fund is about to be launched, this new will target the 30 least volatile stocks from the Nifty 100 index. The AMC announced that the new fund will open on March 23 and close on April 6.

According to the AMC, the ICICI Prudential Nifty Low Volatility 30 index is an open-ended fund of funds that will invest in a portfolio of 30 least volatile large-cap stocks in the Nifty 100 index. Also, its underlying ETF replicates the Nifty 100 low volatility 30 index. This fund attempts in providing returns that closely resemble the returns produced by its benchmark Nifty 100 index. As a matter of fact, the Nifty 100 low volatility 30 index has provided 12-16% returns annually over the past few years. According to Nimesh Shah, managing director, ICICI Prudential AMC, through this fund, an investor gets access to a factor-based smart beta ETF that limits downside risks as they intend to curb the impact of the market volatility by investing in the least volatile blue-chips across sectors.

The Nifty 100 low volatility 30 index consists of stocks which are having the least volatility and are a part of the Nifty 100 index. The individual stock weight is capped at 3% and the top three sectors of the index comprise cement, software, and personal care.