Should you consider investing in Nifty Alpha Low-Volatility 30 Index? trace

While it is well known that equity markets are volatile, controlling your emotions can be a daunting task. As a result, industry experts say many people make sub-optimal investment decisions.

Chintan Hariya, Head of Product Development and Strategy, ICICI Prudential AMC says, “Staying away from equities is not an option, especially if one is looking to build wealth over the long term, so what an investor can consider is investing in those products. May those who can help. Solve their challenges.”

Factor-based investing is one of the ways to harness the growth potential of equities while mitigating some of the risks associated with the equity market. This approach to investing in Hariya states, “Combines the benefits of both active and passive styles of investing in striking a balance between growth and downside protection. Generally, there are many factors that affect a stock’s price.” Huh.”

Factor-based investing attempts to identify these factors and assess the investment through a factor lens.

According to experts the most prevalent factors available today are mainly based on alpha, price, momentum and low volatility. Today an investor has the option of a single or multi-factor investment.

Hariya explains, “In a multi-factor strategy, investment managers look at two or more factors when making investment decisions. By exposure to multiple factors, you can achieve greater diversification.”

If you are an investor who wants to benefit from the long-term growth potential of equities, but is wary of equity market volatility, experts suggest you consider investing in the Nifty Alpha Low-Volatility 30 Index. Huh.

It is a multi-factor index that is based on two different factors, namely alpha and low volatility. Hariya explains, “Alpha is simply the return that is generated over and above the benchmark return. Volatility is the fluctuation in the price of a stock. By investing in the Nifty Alpha Low-Volatility 30 Index, an investor can gain access to the Nifty 100 Index and Get exposure to 30 stocks selected from a universe of Nifty Midcap 50 Index.

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Note, these stocks are names that are relatively less volatile and according to experts have the potential to outperform the broader market.

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