Nifty 100 Low Volatility 30 – Nifty 100 Low Volatility 30 Index

Nifty 100 Low Volatility 30 is a stock market index comprising 30 low-volatility stocks selected from the Nifty 100 index. It aims to provide investors with exposure to companies that exhibit lower price fluctuations, thereby reducing overall portfolio risk while maintaining the potential for capital appreciation and steady returns.

The table below shows the nifty 100 low volatility 30 index based on the highest market capitalisation and 1-year return.

Introduction to Nifty 100 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 is 26.38%. 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.

Tata Consultancy Services Ltd

The Market Cap of Tata Consultancy Services Ltd is Rs. 1,554,085.59 crores. The stock’s monthly return is -5.37%. Its one-year return is 20.46%. The stock is 8.49% away from its 52-week high.

Tata Consultancy Services Limited (TCS) is an Indian company that offers information technology (IT) services, consulting, and business solutions. It serves various industries including Banking, Capital Markets, Consumer Goods and Distribution, Communications, Media, and Information Services, Education, Energy, Resources, and Utilities, Healthcare, High Tech, Insurance, Life Sciences, Manufacturing, Public Services, Retail, and Travel and Logistics. 

Its services encompass Cloud, Cognitive Business Operations, Consulting, Cybersecurity, Data and Analytics, Enterprise Solutions, IoT and Digital Engineering, Sustainability Services, TCS Interactive, TCS and AWS Cloud, TCS Enterprise Cloud, TCS and Google Cloud, as well as TCS and Microsoft Cloud.

HDFC Bank Ltd

The Market Cap of HDFC Bank Ltd is Rs. 1,319,503.30 crores. The stock’s monthly return is 5.80%. Its one-year return is 14.47%. The stock is 3.93% away from its 52-week high.

HDFC Bank Limited, a financial services conglomerate, offers a wide range of financial services including banking, insurance, and mutual funds through its subsidiaries. The bank provides various services such as commercial and investment banking, branch banking, and digital banking. 

Its Treasury segment comprises revenue from interest on investments, money market activities, gains or losses from investment operations, and trading in foreign exchange and derivatives. The Retail Banking segment focuses on digital services and other retail banking activities, while the Wholesale Banking segment caters to large corporates, public sector units, and financial institutions by providing loans, non-fund facilities, and transaction services.  

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 currently 6.31% away from its 52-week high.

Bharti Airtel Limited is an international telecommunications company that operates in five key sectors: Mobile Services, Homes 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. Airtel Business specializes in providing information and communications technology (ICT) services to various entities such as enterprises, governments, carriers, and small to medium businesses.  

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 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.

Infosys Ltd

The Market Cap of Infosys Ltd is Rs. 788,762.78 crores. The stock’s monthly return is -3.03%. Its one-year return is 32.04%. The stock is 4.35% away from its 52-week high.

Infosys Limited is a company based in India that offers consulting, technology, outsourcing, and digital services. Its business segments cover areas such as Financial Services, Retail, Communication, Energy, Utilities, Resources, Services, Manufacturing, Hi-Tech, and Life Sciences. 

The company’s core services consist of application management, proprietary application development, validation solutions, product engineering and management, infrastructure management, enterprise application integration and support. Furthermore, Infosys operates Danske Bank’s IT center in India.

Hindustan Unilever Ltd

The Market Cap of Hindustan Unilever Ltd is Rs. 688,151.04 crores. The stock’s monthly return is 4.98%, while its one-year return stands at 17.19%. Currently, the stock is 4.90% away from its 52-week high.

Hindustan Unilever Limited, an Indian consumer goods company, operates across five key segments: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream. Within the Beauty & Wellbeing segment, the company focuses on selling hair care, and skin care, including Prestige Beauty and Health & Wellbeing products. 

The Personal Care segment covers skin cleansing, deodorant, and oral care products. Home Care involves fabric care and a variety of cleaning products. In the Nutrition segment, the company offers scratch cooking aids, dressings, and tea products. The Ice Cream segment focuses on selling ice cream products. Notable brands under the Home Care category include Domex, Comfort, and Surf Excel, among others.

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 specialty 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.

HCL Technologies Ltd

The Market Cap of HCL Technologies Ltd is Rs. 491,569.10 crores. The stock’s monthly return is 0.56%. Its one-year return is 46.65%. The stock is 0.66% away from its 52-week high.

HCL Technologies Limited is an India-based company specializing in technology services and products. The company operates through three main business segments: IT and Business Services (ITBS), Engineering and R&D Services (ERS), and HCLSoftware.

The ITBS segment offers a range of IT and business services such as application management, infrastructure support, digital process operations, and digital transformation services powered by digital technologies, analytics, IoT, cloud, and cybersecurity solutions.  The ERS segment focuses on providing engineering services and solutions in software, embedded systems, mechanical engineering, VLSI, and platform engineering to support the entire product lifecycle in various industries.  

What is the Nifty 100 Low Volatility 30?

The Nifty 100 Low Volatility 30 is a stock market index that features 30 of the least volatile stocks selected from the broader Nifty 100 index. It aims to provide investors with exposure to companies that demonstrate lower price fluctuations, enhancing stability during market fluctuations.  

This index is designed for investors seeking a more conservative investment approach, focusing on stocks that are less sensitive to market volatility. By investing in such companies, investors can potentially reduce risk while still participating in the performance of the Indian equity market.

Nifty 100 Low Volatility 30 Weightage

The table below shows the nifty 100 low volatility 30 weightage.

Nifty 100 Low Volatility 30 Stocks List Based On 1M Return

The table below shows the nifty 100 low volatility 30 stocks list based on 1 month’s return.

Nifty 100 Low Volatility 30 Index Based On Dividend Yield

The table below shows the nifty 100 low volatility 30 index based on dividend yield.

How is the Nifty 100 Low Volatility 30 Index Value Calculated?

The Nifty 100 Low Volatility 30 Index Value is determined through a systematic methodology that focuses on selecting 30 stocks from the Nifty 100 Index. This selection is based on the lowest volatility over a specified period, ensuring a lower risk profile.  

The calculation involves measuring the price movements of these selected stocks and their performance consistency. By prioritizing stocks with less price fluctuation, the index aims to provide investors with a more stable investment option compared to higher volatility counterparts, which may experience greater price swings.

How stocks are Selected for the Nifty 100 Low Volatility 30 Index?

The selection process for the Nifty 100 Low Volatility 30 Index involves identifying stocks from the Nifty 100 that exhibit the lowest price volatility. This is typically determined based on the historical price movements of stocks over a specific period.  

Once the least volatile stocks are identified, they are ranked, and the top 30 are chosen for inclusion in the index. The aim is to create a portfolio that minimizes risk while providing exposure to high-quality companies, benefiting investors seeking stability.

History of the Nifty 100 Low Volatility 30

The Nifty 100 Low Volatility 30 index is designed to measure the performance of the 30 least volatile stocks from the Nifty 100 Index. This index aims to provide investors with a stable investment option, emphasizing lower risk compared to high-volatility stocks.

Launched in 2019, the index selects stocks based on their volatility over a specified period, promoting capital preservation. It serves as a benchmark for investors seeking less volatile investment opportunities in the Indian equity market, allowing for potential consistent returns with reduced fluctuations.

 Key Factors of Nifty 100 Low Volatility 30 Index Performance

The key factor of the Nifty 100 Low Volatility 30 Index’s performance is Diversification.The Nifty 100 Low Volatility 30 Index includes stocks from various sectors, reducing the overall risk. This diversification allows investors to mitigate losses in one sector by gaining from others, enhancing portfolio stability and resilience against market fluctuations.

1. Stable Earnings Growth: Companies in this index typically exhibit stable earnings growth, making them less susceptible to economic downturns. Their reliable performance attracts risk-averse investors seeking steady returns, particularly in uncertain market conditions.
2. Low Beta Stocks: The index primarily consists of low beta stocks, which demonstrate less sensitivity to market movements. This characteristic helps protect investors’ capital during market downturns, as these stocks tend to retain value better than their high-beta counterparts.
3. Attractive Valuation: Stocks within the index often present attractive valuation metrics compared to their peers. This aspect makes them appealing to value-oriented investors, providing potential for capital appreciation while maintaining lower volatility, and enhancing overall investment performance.
4. Focus on Quality: The Nifty 100 Low Volatility 30 Index emphasizes high-quality companies with strong fundamentals. Investing in these quality stocks can lead to more consistent performance and reduced risk, aligning well with the objectives of conservative investors.

Benefits of Investing in the Nifty 100 Low Volatility 30

The primary benefit of investing in the Nifty 100 Low Volatility 30 is Consistent Returns.
Investing in low-volatility stocks often leads to more consistent returns over time. These stocks tend to outperform the broader market during downturns, providing a cushion against significant losses and allowing for steadier portfolio growth.

1. Reduced Drawdowns: Low-volatility stocks typically experience lower drawdowns compared to their high-volatility counterparts. This characteristic helps investors maintain their capital during market declines, enabling them to preserve wealth while still participating in potential market recoveries.
2. Defensive Strategy: Investing in the Nifty 100 Low Volatility 30 aligns with a defensive investment strategy. This approach can protect capital during economic uncertainty, making it an attractive option for risk-averse investors who prioritize capital preservation.
3. Attractive Risk-Reward Ratio: Low-volatility stocks often present a favorable risk-reward ratio. By selecting stocks that are less sensitive to market swings, investors can achieve reasonable returns while minimizing potential losses, enhancing overall investment performance.
4. Diversification Benefits: Incorporating low-volatility stocks into a portfolio adds diversification, reducing overall portfolio risk. This strategy enables investors to balance high-risk assets with stable, low-volatility options, leading to improved risk-adjusted returns over time.

Risks of Investing in the Nifty 100 Low Volatility 30 Index

The main risk of investing in the Nifty 100 Low Volatility 30 Index is Market Risk. The Nifty 100 Low Volatility 30 Index is still subject to overall market fluctuations. Economic downturns or market corrections can negatively impact stock prices, even for traditionally stable companies, leading to significant losses.

1. Limited Growth Potential: Companies in the low volatility index tend to be established firms with slower growth rates. This can result in limited capital appreciation, making it challenging for investors seeking substantial returns in bullish market conditions.
2. Sector Concentration Risk: This index may be heavily weighted toward specific sectors, such as consumer goods or utilities. If these sectors underperform, it could disproportionately affect the index’s overall performance, leading to increased investment risk.
3. Interest Rate Sensitivity: Low volatility stocks often include dividend-paying companies, making them sensitive to interest rate changes. Rising interest rates can make bonds more attractive, prompting a shift away from these stocks and leading to potential price declines.
4. Lack of Diversification: Investing solely in the Nifty 100 Low Volatility 30 Index may result in a lack of diversification across different sectors or asset classes. This concentration can amplify risk during market downturns, as correlated assets may all decline simultaneously.

How To Invest in Nifty 100 Low Volatility 30 Index?

Investing in the Nifty 100 Low Volatility 30 Index can be a smart choice for those looking for stable returns. Start by opening an account with a brokerage like Alice Blue, which offers easy access to this index. Once your account is set up, you can invest in exchange-traded funds (ETFs) or mutual funds that track the Nifty 100 Low Volatility 30 Index. 

What are the tax Implications of investing in Nifty 100 Low Volatility 30 Index?

Investing in the Nifty 100 Low Volatility 30 Index can have specific tax implications for investors. Capital gains generated from the sale of units in this index fund are subject to taxation based on the holding period, affecting returns.

Short-term capital gains (STCG) tax applies if units are sold within one year, at a rate of 15%. Conversely, long-term capital gains (LTCG) tax is levied on profits exceeding ₹1 lakh per financial year at 10%, impacting net investment returns.

Future of Nifty 100 Low Volatility 30 Index

The Nifty 100 Low Volatility 30 Index is designed to reflect the performance of 30 stocks from the Nifty 100 that exhibit lower volatility. This index targets investors seeking stability and consistent returns in a fluctuating market environment.  

In the coming years, the index is expected to play a significant role for conservative investors who prioritize risk management. Its focus on low-volatility stocks offers the potential for steadier growth, making it an attractive option for those looking to mitigate exposure to market volatility.

FAQs – Nifty 100 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.