Low-volatility index funds, ETFs show lower drawdowns and higher returns

Low-volatility indices typically consist of the least volatile stocks within a particular index

High market volatility in recent months has left many investors seeking options that offer protection against sharp index swings while still allowing for potential gains when markets recover. Low-volatility funds can meet this need. Several asset management companies (AMCs) like Nippon, Axis, SBI, Groww, and ICICI Pru have filed with Sebi for the launch of index funds and exchange-traded funds based on low-volatility indices. Several others like ICICI Pru, Kotak, UTI, Motilal Oswal, HDFC, and Mirae already offer them.

 

“Rising market uncertainty, geopolitical risks, and trade tensions, combined with a shift in investor preference from aggressive growth to better risk-adjusted