Nifty Alpha Low Volatility 30 – Nifty Alpha Low Volatility 30 Index

The Nifty Alpha Low Volatility 30 Index tracks 30 stocks from the broader market, selected for their combination of high alpha and low volatility. This dual strategy focuses on stocks with strong market outperformance (alpha) while minimizing price fluctuations (low volatility), offering investors a balanced approach that aims to achieve higher returns with reduced risk in varying market conditions.

The table below shows the nifty alpha low volatility 30 index based on the highest market capitalisation and 1-year return.

Introduction To the Nifty Alpha Low Volatility 30 Index

Reliance Industries Ltd

The Market Cap of Reliance Industries Ltd is Rs. 1,985,700.07 crores. The stock’s monthly return is -3.38%. Its one-year return stands at 26.38%. Currently, the stock is 9.83% away from its 52-week high.

Reliance Industries Limited is a company based in India that is involved in various activities such as hydrocarbon exploration and production, petroleum refining, marketing, petrochemicals, advanced materials, composites, renewables (solar and hydrogen), retail and digital services. The company operates in segments including Oil to Chemicals (O2C), Oil and Gas, Retail and Digital Services. 

The O2C segment comprises refining, petrochemicals, fuel retailing, aviation fuel, bulk wholesale marketing, transportation fuels, polymers, polyesters and elastomers. Its assets in the O2C business include aromatics, gasification, multi-feed and gas crackers, downstream manufacturing facilities, logistics and supply-chain infrastructure. 

Bharti Airtel Ltd

The Market Cap of Bharti Airtel Ltd is Rs. 1,019,229.24 crores. The stock’s monthly return is 7.88%. Its one-year return is 80.85%. The stock is 6.31% away from its 52-week high.

Bharti Airtel Limited is an international telecommunications company that operates in five key sectors: Mobile Services, home services, Digital TV Services, Airtel Business and South Asia. In India, the Mobile Services segment offers voice and data telecommunications using 2G, 3G and 4G technologies. 

Homes Services provides fixed-line phone and broadband services in 1,225 cities across India. The Digital TV Services segment includes standard and HD digital TV services with 3D features and Dolby surround sound, offering a total of 706 channels, including 86 HD channels, 4 international channels and 4 interactive services. 

ICICI Bank Ltd

The Market Cap of ICICI Bank Ltd is Rs. 899,522.51 crores. The stock’s monthly return is 3.78%. Its one-year return is 33.61%. The stock is currently 8.44% away from its 52-week high.

ICICI Bank Limited, an India-based banking company, offers a variety of banking and financial services through its six segments. These segments include retail banking, wholesale banking, treasury operations, other banking activities, life insurance and other ventures. The bank also operates both domestically and internationally through its geographical segments.

State Bank of India

The Market Cap of the State Bank of India is Rs. 712,478.33 crores. The stock’s monthly return is -3.04%. Its one-year return is 31.70%. The stock is 14.85% away from its 52-week high.

The State Bank of India is a banking and financial services provider headquartered in India. The company offers a diverse range of products and services to individuals, commercial enterprises, corporations, public bodies and institutional customers. 

Its operations are divided into segments such as Treasury, Corporate/Wholesale Banking, Retail Banking, Insurance Business and Other Banking Business. The Treasury segment focuses on investment and trading in foreign exchange and derivative contracts. The Corporate/Wholesale Banking segment includes lending activities for corporate accounts, commercial clients and stressed assets resolution.  

ITC Ltd

The Market Cap of ITC Ltd is Rs. 646,760.01 crores. The stock’s monthly return is 1.21%. Its one-year return is 16.60%. The stock is 3.07% away from its 52-week high.

ITC Limited, a holding company based in India, operates through several segments. These segments include Fast Moving Consumer Goods (FMCG), Hotels, Paperboards, Paper and Packaging and Agri-Business. 

In the FMCG segment, the company offers a variety of products such as cigarettes, cigars, personal care items, safety matches and packaged foods like staples, snacks, dairy products and beverages. The Paperboards, Paper and Packaging segment focuses on speciality paper and packaging solutions. The Agri-Business segment deals with various agricultural commodities like wheat, rice, spices, coffee, soya and leaf tobacco.  

Larsen and Toubro Ltd

The Market Cap of Larsen and Toubro Ltd is Rs. 503,224.08 crores. The stock’s monthly return is -0.80%. Its one-year return is 13.81%. The stock is 12.07% away from its 52-week high.

Larsen & Toubro Limited is involved in a range of activities, including engineering, procurement and construction projects (EPC), hi-tech manufacturing and services. The company operates in various segments such as Infrastructure Projects, Energy Projects, Hi-Tech Manufacturing, IT & Technology Services, Financial Services, Development Projects and Others. 

The Infrastructure Projects division focuses on engineering and constructing buildings, factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, water and effluent treatment, as well as minerals and metals. The Energy Projects segment provides EPC solutions for the hydrocarbon, power and green energy sectors.  

Sun Pharmaceutical Industries Ltd

The Market Cap of Sun Pharmaceutical Industries Ltd is Rs. 461,457.83 crores. The stock’s monthly return is 5.36%. Its one-year return is 67.41%. The stock is 2.59% away from its 52-week high.

Sun Pharmaceutical Industries Limited, an Indian-based pharmaceutical company specializing in generic medications, is involved in the manufacturing, development and marketing of a diverse range of branded and generic pharmaceutical formulations and active ingredients. 

The company offers a broad portfolio of generic and speciality medicines tailored for various chronic and acute medical conditions. With a vertically integrated network, Sun Pharma is capable of producing a wide array of pharmaceutical products, including oncology drugs, hormones, peptides and steroidal medications.  

NTPC Ltd

The Market Cap of NTPC Ltd is Rs. 427,489.08 crores. The stock’s monthly return is 7.24%. Its one-year return is 80.49%. The stock is 3.01% away from its 52-week high.

NTPC Limited is an India-based company that specializes in power generation. The company’s main focus is on producing and selling large quantities of power to State Power Utilities. NTPC operates in two main segments: Generation and Others. 

The Generation segment is responsible for producing and selling power to state power utilities, while the Other segment provides services such as consultancy, project management, energy trading and more. NTPC owns and operates a total of 89 power stations in different Indian states, either on its own or through joint ventures and subsidiaries.  

Maruti Suzuki India Ltd

The Market Cap of Maruti Suzuki India Ltd is Rs. 414,659.06 crores. The stock’s monthly return is 5.73%, while its one-year return is 22.23%. Additionally, the stock is currently 8.16% away from its 52-week high.

Maruti Suzuki India Limited is involved in the manufacturing, purchasing and selling of motor vehicles, components and spare parts. The company focuses on producing and selling both passenger and commercial vehicles. It also offers aftermarket parts and accessories under the brand names Maruti Suzuki Genuine Parts and Maruti Suzuki Genuine Accessories. 

In addition, the company facilitates the sale of pre-owned cars, provides fleet management services and offers car financing. Maruti Suzuki’s vehicles are sold through three channels: NEXA, Arena and Commercial. 

Axis Bank Ltd

The Market Cap of Axis Bank Ltd is Rs. 379,445.80 crores. The stock’s monthly return is 3.42%. Its one-year return is 12.93%. The stock is 13.94% away from its 52-week high.

Axis Bank Limited, an India-based company, provides a range of banking and financial services through its segments including Treasury, Retail Banking, Corporate/Wholesale Banking and Other Banking Business. 

The Treasury segment involves investments in various assets, trading operations and foreign exchange activities. Retail Banking offers a variety of services such as liability products, cards, online and mobile banking, ATM services, financial advisory and services for non-resident Indians. Corporate/Wholesale Banking provides services to corporate clients including advisory services, project appraisals and capital market support. 

What is the Nifty Alpha Low Volatility 30?

The Nifty Alpha Low Volatility 30 is a stock market index in India that comprises 30 carefully selected companies known for their low volatility and high alpha generation. It aims to provide investors with a less risky option that still offers the potential for higher returns compared to traditional market benchmarks.  

This index focuses on stocks that tend to fluctuate less in price, making it suitable for risk-averse investors seeking stability while still wanting exposure to equity markets. By concentrating on companies that consistently perform well relative to their risk, it serves as a strategic investment choice in diverse market conditions.

Nifty Alpha Low Volatility 30 Weightage

The table below shows the nifty alpha low volatility 30 weightage.

Nifty Alpha Low Volatility 30 Stocks List Based On 1M Return

The table below shows the nifty alpha low volatility 30 stocks list based on 1 month return.

Nifty Alpha Low Volatility 30 Index Based On Dividend Yield

The table below shows the nifty alpha low volatility 30 index based on dividend yield.

How is the Nifty Alpha Low Volatility 30 Index Value Calculated?

The Nifty Alpha Low Volatility 30 Index Value is determined by calculating the performance of 30 stocks that exhibit both alpha and low volatility characteristics. This means it focuses on companies that have generated higher returns relative to their risk, using historical price data.  To compute the index, stock prices are weighted based on their market capitalization, while ensuring that stocks with lower volatility have a more significant influence. This methodology aims to capture stocks that not only perform well but also minimize risk, providing a more stable investment option for investors.

How Stocks Are Selected for the Nifty Alpha Low Volatility 30 Index?

The selection process for the Nifty Alpha Low Volatility 30 Index involves identifying stocks that exhibit lower volatility while demonstrating strong alpha generation potential. This typically entails analyzing historical price movements to ensure these stocks maintain stable returns, minimizing overall risk for investors.  

To qualify for inclusion, stocks must meet specific criteria set by the index, such as market capitalization and average trading volume. The final list is determined through a systematic evaluation that focuses on identifying companies capable of delivering consistent performance over time, thus ensuring a balanced and resilient index composition.

History of the Nifty Alpha Low Volatility 30

The Nifty Alpha Low Volatility 30 Index was introduced by NSE Indices Limited to provide a benchmark that balances high alpha with low volatility. It was designed to track stocks that combine strong market outperformance with reduced price swings.

Since its launch, the index has gained popularity among risk-averse investors looking for growth opportunities. It highlights companies that aim to deliver superior returns while minimizing the impact of market volatility, making it a strategic choice for stable investments.

Key Factors of Nifty Alpha Low Volatility 30 Index Performance

The factor to consider for the performance of the Nifty Alpha Low Volatility 30 Index is its unique focus on combining high alpha with low volatility, targeting stocks that consistently outperform while maintaining stable price movements.

1. Stock Selection Process: The index selects 30 stocks with a blend of high alpha and low volatility, emphasizing companies that outperform the market while minimizing the impact of price fluctuations on their performance.
2. Balanced Weighting: It employs a balanced weighting strategy, where stocks are weighted based on their alpha and volatility scores, ensuring that no single stock overly influences the index’s performance.
3. Periodic Adjustments: Regular reviews and rebalancing of the index ensure that it adapts to changing market conditions, maintaining its focus on stocks that continue to exhibit strong performance with reduced volatility.
4. Risk Mitigation: By including low-volatility stocks, the index aims to mitigate risks associated with market swings, making it an attractive choice for investors seeking steady returns during uncertain economic conditions.
5. Sector Diversification: The index features stocks from multiple sectors, reducing the dependence on any specific industry, which helps to stabilize the overall portfolio against sector-specific risks or downturns.

Benefits of Investing in the Nifty Alpha Low Volatility 30

The primary benefits of investing in the Nifty Alpha Low Volatility 30 include its focus on stocks that offer a unique combination of high returns (alpha) and stability, making it an ideal choice for risk-conscious investors.

1. Reduced Risk Exposure: The inclusion of low-volatility stocks helps reduce exposure to market fluctuations, providing a more stable investment option that aims to deliver consistent returns even during periods of heightened market instability.
2. Enhanced Growth Potential: The focus on high-alpha stocks within the index boosts the potential for superior growth, as these companies have a history of outperforming the broader market, offering attractive long-term investment opportunities.
3. Diversified Portfolio: By incorporating a range of sectors, the index reduces the reliance on individual industries, ensuring a well-rounded portfolio that minimizes the impact of sector-specific downturns on overall performance.
4. Systematic Rebalancing: Regular rebalancing of the index keeps it updated with stocks that continue to meet its criteria, allowing investors to benefit from the most current high-performing and low-volatility opportunities.
5. Improved Risk-Adjusted Returns: The strategic combination of alpha and low volatility aims to enhance risk-adjusted returns, providing a balanced approach that maximizes gains while controlling risks, ideal for conservative growth-focused investors.

Risks of Investing in the Nifty Alpha Low Volatility 30 Index

The main risk of investing in the Nifty Alpha Low Volatility 30 Index lies in its dependence on a dual strategy of high alpha and low volatility, which may not always align with market trends, leading to underperformance.

1. Limited Upside in Bull Markets: Low-volatility stocks might lag during strong market rallies. While they provide stability, they often miss out on the full potential gains during bullish phases, limiting overall portfolio growth.
2. Concentration in Defensive Sectors: The index may have higher exposure to defensive sectors known for low volatility, which can lead to underperformance when growth-oriented sectors are leading the market.
3. Market Sensitivity Changes: The performance of high-alpha stocks can be volatile during changing economic conditions. If market trends shift unexpectedly, these stocks might not deliver the anticipated returns.
4. Frequent Rebalancing Costs: Regular rebalancing to maintain a blend of high-alpha and low-volatility stocks can increase transaction fees and tax implications, potentially eroding the net gains for investors over time.
5. Potential Overvaluation: High-alpha stocks in the index might become overvalued during periods of strong market performance, increasing the risk of significant price corrections when market conditions become less favourable.

How To Invest in the Nifty Alpha Low Volatility 30 Index?

Investing in the Nifty Alpha Low Volatility 30 Index involves a strategic approach to minimize risk while seeking returns. First, open a trading account with Alice Blue. Then, analyze the index components and understand their performance. Allocate funds based on your risk appetite and investment goals. Regularly monitor market trends and index changes to adjust your portfolio accordingly. 

What Are The Tax Implications Of Investing In Nifty Alpha Low Volatility 30 Index?

Investing in the Nifty Alpha Low Volatility 30 Index follows standard equity tax rules in India. Short-term capital gains (STCG) are taxed at 15% if the holding period is less than one year.

Long-term capital gains (LTCG) are taxed at 10% on profits exceeding INR 1 lakh if the holding period is over one year. These tax rates impact the net returns and overall profitability of the investment.

Future of Nifty Alpha Low Volatility 30 Index

The Nifty Alpha Low Volatility 30 Index represents a portfolio of stocks that exhibit both a low volatility and high alpha, designed to deliver superior risk-adjusted returns. This index focuses on companies that demonstrate stable performance, providing investors with a more predictable investment avenue.  Looking ahead, the Nifty Alpha Low Volatility 30 Index is expected to maintain its appeal among risk-averse investors. By concentrating on lower volatility stocks, it aims to offer consistent returns while minimizing fluctuations, making it a strategic choice for long-term investment stability in uncertain market conditions.

FAQs – Nifty Alpha Low Volatility 30 Index

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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.