How to plan for money needs at every step of life? In Your Money, we not only tell you how to save, but also teach you how to earn huge profits on your savings, so that you can achieve every goal of life well. Today we will talk about low volatility fund. Where correction is continuously seen in the market. In such a situation, how much power is low volatility fund? Talking on this , Hemant Rustagi, CEO of WISEINVEST said that low volatility fund is selected on the basis of low risk, stable return. Through this fund, stable and balanced returns are obtained in volatility. It is less affected by volatility.
He said that through this fund, investment is made in assets with low volatility. Investing in assets with low volatility gives stable returns. It provides less risk and better diversification. It provides stability during market downturns. Low volatility funds perform better during pressure and give moderate returns during sharp rise in the market.
Hemant Rustagi said that the Low Volatility Fund tracks the Nifty100 Low Volatility 30 index. It is a rule-based investment method and through this, one invests in stocks with specific characteristics. This fund is reviewed according to the market movement.
Talking about the benefits of low volatility fund, he said that it offers low risk, stable returns and rule based investment method. Talking about the disadvantages of this fund, he said that it gives low returns and investment limits are fixed.
Let us tell you that allocation in low-volatility funds depends on the investor's risk-taking ability and financial goals. Low-volatility funds remain a strong option for investors seeking stability and stable returns amid fluctuating markets. Although their upside potential may be reduced during a sharp rise, their flexibility and long-term performance make them a better option.
(Disclaimer: The views expressed on Moneycontrol.com are the personal views of the experts. The website or management is not responsible for the same. Moneycontrol advises users to seek advice from certified experts before taking any investment decision.