Want to construct your portfolio completely with index funds? Or want to construct the “Best portfolio” using index funds or ETFs? How would you do that? Good that there are many options available in the passive investing space. There are cap-based indices (Nifty 50, Nifty Next 50, Nifty Midcap 150 etc) and there are factor indices (Momentum, Low Volatility, Quality, … [Read more...] about How to build the “Best Portfolio” using index funds and ETFs?
nifty 100 low volatility 30 index
In an earlier post, we discussed factor-investing and compared the performance of various factor indices (Value, Momentum, Quality, Low Volatility, and Alpha). The performance of some of the factors especially, Quality, Low Volatility, and Momentum was impressive, both on risk and return front. What if we combine two factors? Or what if we pick those stocks that … [Read more...] about Nifty Alpha Low Volatility 30: Review and Performance Comparison
In some of the earlier posts, I have written about momentum and low volatility investing. In this post, I compare the performance of various factor-based indices. What is Factor Investing? This blog post from S&P gives an interesting analogy. Consider Factors as nutrients and food items as stock returns. Now, different food items (pulses, milk, bread, vegetables, … [Read more...] about Nifty Factor Indices (Value, Momentum, Quality, Low Volatility, Alpha): Performance Comparison
Risk and Reward go hand in hand. Higher the risk, greater the reward. So, if you are looking for higher returns, you just need to load up on risk. At least, that’s what the Capital Asset Pricing model (CAPM) used to calculate expected stock returns tells us. However, the experience has been completely different in various markets. Low volatility stocks have … [Read more...] about Does Low Volatility Investing beat Nifty and Sensex?