Investing in the Stock Market with Lower Volatility: R. Venkatesh, Founder, GuruRam Financial Services Pvt. Ltd.

 

Investing in the Stock Market with Lower Volatility: Axis Nifty500 Low Volatility 50 Index Fund.!

Mr. R. Venkatesh, Founder,

GuruRam Financial Services Pvt. Ltd.

www.gururamfinancialservices.com

ARN 265132, Tel. +91- 9677267889

 

Can You Invest in the Stock Market with Lower Volatility?

 

“I am interested in investing in the stock market. But when I see the market moving up and down every day, I feel nervous!” Karthik told his friend.

“It is not possible to eliminate volatility from the stock market. However, there are investment approaches that focus on selecting stocks with relatively lower volatility,” his friend replied.

 

One of the key challenges faced by people who want to invest in the stock market is volatility. In particular, the rapid rise and fall in investment value over a short period can affect investors’ emotions and decision-making.

 

In this context, the Axis Nifty500 Low Volatility 50 Index Fund, a new scheme, is attracting investors’ attention.

 

The scheme will invest with the objective of replicating the Nifty500 Low Volatility 50 Total Return Index. It is an open-ended index fund.

 

What Does ‘Low Volatility’ Mean?

 

The price of a stock does not remain the same every day. Some stocks experience only small price movements, while others may rise or fall sharply.

 

Volatility is a measure used to assess how much the price of a stock fluctuates over a particular period.

Stocks with low volatility may show relatively smaller price fluctuations compared with certain other stocks.

 

However, low volatility does not mean low risk or a guarantee that losses will not occur. These stocks may also decline during a market downturn.

 

What Is the Nifty500 Low Volatility 50 Index?

 

The Nifty500 Low Volatility 50 is an index comprising 50 stocks selected from companies in the Nifty500 universe based on their relatively lower historical price volatility.

Therefore, investing in the regular Nifty500 Index and investing in an index based on low volatility represent different investment approaches.

 

This new fund will seek to replicate the performance of that index.

 

How Will the Fund Work?

 

Since this is an index fund, the fund manager will not follow a strategy of frequently buying and selling stocks based entirely on personal preferences.

Instead, the primary objective will be to hold stocks in accordance with the composition of the index it tracks.

When the number of stocks or their respective weights in the index change, the fund may adjust its investments accordingly.

 

This allows investors to participate in this investment approach through a single mutual fund rather than selecting and investing in 50 individual stocks themselves.

 

Key Features of the New Fund

Feature	Details
Name of the Scheme	Axis Nifty500 Low Volatility 50 Index Fund
Investment Benchmark	Nifty500 Low Volatility 50 Index
Index Type	Total Return Index
Nature of the Scheme	Open-ended index fund
New Fund Offer Closing Date	22 September 2026
Minimum Investment	₹100
Exit Load	0.25% if the investment is redeemed within 15 days from the date of allotment

 

A Minimum Investment of ₹100

The minimum investment amount for this scheme is stated to be ₹100.

 

A low minimum investment may be convenient for those who want to start investing with a small amount. However, this does not mean that investors should invest only ₹100.

The investment amount should be determined based on the investor’s financial goals, investment horizon, and monthly investment capacity.

 

Why Should Investors Pay Attention to the Exit Load?

The scheme states that an exit load of 0.25% will be charged if units are redeemed within 15 days from the date of allotment.

For example, if an investment worth ₹1 lakh is redeemed within 15 days, an exit load of 0.25% could amount to ₹250.

Therefore, instead of approaching this scheme with the intention of withdrawing money within a very short period, investors should plan their investment horizon and purpose in advance.

 

Does Low Volatility Mean Lower Losses?

This is one of the most important aspects investors need to understand carefully.

Investors should not assume that investing in this fund will result in lower losses or that their investment will be protected simply because the scheme is called “Low Volatility.”

 

Since this is a stock-market-linked investment, the value of the fund may decline when the market falls.

Low volatility refers to an investment approach based on the historical price fluctuations of the selected stocks. It is not a guarantee of how much their prices will fluctuate in the future.

 

Who May Consider This Scheme?

 

Those who want to invest in the stock market but prefer an investment approach based on relatively lower volatility, rather than focusing on stocks with high price fluctuations, may consider this scheme.

 

Investors who already have investments in various stocks or equity-oriented mutual funds may also evaluate whether an index-based approach of this kind is necessary as part of their overall portfolio diversification.

 

However, investing money required for short-term needs in stock-market-linked schemes may not be appropriate.

 

6 Questions to Ask Before Investing

Question	Why Is It Important?
What is my investment horizon?	Helps assess whether the investment period is suitable for managing stock-market volatility.
How much risk can I afford to take?	Helps avoid impulsive decisions during market declines.
Do I already have investments in stocks?	Helps avoid excessive concentration in one type of investment.
Do I understand the index-based investment approach?	Helps investors understand how the fund invests.
What are the costs involved?	Helps understand the long-term impact of investment expenses.
When will I need the money?	Helps avoid relying on stock-market investments for short-term financial needs.

 

Volatility is an unavoidable part of stock-market investing. However, investors can choose different indices and investment strategies based on their individual approach and requirements.

 

The Axis Nifty500 Low Volatility 50 Index Fund is a new scheme that will invest with the objective of replicating an index comprising 50 stocks from the Nifty500 universe, selected based on relatively lower historical volatility.

 

Although the minimum investment of ₹100 may be convenient for those who want to start with a small amount, the real importance of investing lies not merely in the amount, but in the objective, investment horizon, risk, and overall portfolio diversification.

 

Therefore, instead of making a decision based only on the term “low volatility,” investors should understand the scheme’s investment approach and invest according to their ability to withstand market risks.

Before investing, investors should carefully read and understand the scheme’s official documents, including its investment objective, risk factors, expenses, and other applicable terms and conditions.

 

For more details & Investments contact..!

 

Mr. R. Venkatesh, Founder,

GuruRam Financial Services Pvt. Ltd.
New No. 14, Old No. 37C, First Floor
Nathamuni Street, T Nagar, Chennai -600017

Tel. +91- 9677267889, 9677025125
Email: gururamforyou@gmail.com

https://www.gururamfinancialservices.com/index.php

ARN 265132

 

For mutual fund investments, financial planning, and life & health insurance, you can confidently approach R. Venkatesh.

 

 

Read articles written by Mr. R. Venkatesh in Nanayam Vikatan, Aval Vikatan and Vikatan.com a leading personal finance magazine https://www.vikatan.com/author/aar-vengktteess

 

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes.