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Nifty 50 vs Nifty Subsequent 50 vs Nifty Issue Indices (Alpha, Momentum, Worth, High quality, Low Volatility) (2022)

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Nifty 200 Momentum 30 and Nifty Alpha 50 indices have given the very best returns. Low Volatility and High quality indices are the least risky and publish the very best risk-adjusted metrics.

I’ve in contrast the efficiency of issue indices in earlier posts, however I’ve by no means in contrast all of them in a single publish. Together with distinguished cap-based indices. On this publish, I evaluate the next:

  1. 4 Market cap-based indices: Nifty 50, Nifty Subsequent 50, Nifty Midcap 150, Nifty Smallcap 250
  2. Alpha: Nifty Alpha 50
  3. Worth: Nifty 50 Worth 20 (NV20), Nifty 500 Worth 50
  4. High quality: Nifty 200 High quality 30, Nifty Midcap 150 High quality 50
  5. Low Volatility: Nifty 100 Low Volatility 30
  6. Momentum: Nifty 200 Momentum 30
  7. Multi-factor index: Nifty Alpha Low Volatility 30

12 indices in whole. 4 cap-based and eight issue indices. I’ve written about lots of the following indices earlier than too.

  1. Nifty 50 TRI
  2. Nifty Subsequent 50 TRI (Overview 1) (Overview 2)
  3. Nifty Midcap 150  
  4. Nifty Smallcap 250
  5. Nifty 200 Momentum 30 (Overview 1) (Overview 2)
  6. Nifty 200 High quality 30 (Overview)
  7. Nifty Alpha 50 (Overview)
  8. Nifty 100 Low Volatility 30 (Overview 1) (Overview 2)
  9. Nifty Alpha Low Volatility 30 (Overview 1) (Overview 2)
  10. Nifty 50 Worth 20 Index (NV20) (Overview)
  11. Nifty 500 Worth 50
  12. Nifty Midcap 150 High quality 50 (Overview 1) (Overview 2)

I take advantage of the info from April 1, 2005, till March 31, 2022. For Nifty Alpha Low Vol 30 index, the Complete returns index (TRI) information was not simply downloadable from NiftyIndices web site. Therefore, I’ve used worth returns information for the index. Have used TRI for different indices.

Nifty Issue Indices (Nifty Technique Indices): Calendar Yr Efficiency

Allow us to begin with calendar 12 months returns.

NSE Strategy indices
performance comparison
factor indices
Nifty 50 
Nifty Next 50
Nifty Midcap 150 Nifty smallcap
Nifty alpha 50
Nifty Alpha low volatility 30
Nifty 200 Momentum 30

Nifty Issue Indices (Nifty Technique Indices): 5-year Efficiency

NSE Strategy indices
performance comparison
factor indices
Nifty 50 
Nifty Next 50
Nifty Midcap 150 Nifty smallcap
Nifty alpha 50
Nifty Alpha low volatility 30
Nifty 200 Momentum 30

Nifty Issue Indices (Nifty Technique Indices): CAGR, Rolling Returns, Sharpe Ratios

April 1, 2005 – March 31, 2022

The info for Nifty 50 Worth 20 index is barely from January 1, 2009. For different indices, the info is from April 1, 2005. Within the earlier chart, the efficiency metrics (CAGR, Sharpe ratios, drawdowns) are favourably affected (since market meltdown as a result of international monetary disaster will not be thought-about for NV20). Not honest to different indices. Within the chart under, I recalculate the efficiency metrics from January 1, 2009-March 31, 2022.

January 1, 2009 – March 31, 2022

How do you utilize this info?

No funding technique, regardless of how good, works on a regular basis. No funding technique, regardless of how unhealthy, fails on a regular basis.

Every technique goes by way of ups and downs and can check your endurance. If you happen to choose an funding technique (issue index) merely primarily based on previous efficiency (and with out conviction), you might bounce the ship on the improper time.

About tips on how to use this info in your portfolio, I’ve written two posts lately.

Learn how to construct a long-term portfolio? If you wish to put money into issue indices, these could possibly be a part of your satellite tv for pc fairness portfolio.

One other publish (Learn how to assemble “the Finest portfolio” utilizing index funds and ETFs?) discusses tips on how to optimize your portfolio for numerous efficiency metrics (excessive CAGR, low commonplace deviation, excessive Sharpe ratios, low drawdowns). Give attention to the metric that appeals to you essentially the most. Use the indices/ETFs that rank the very best on these metrics.

Just a few caveats

  1. The efficiency of many issue indices seems tremendous spectacular. Nonetheless, previous efficiency doesn’t assure future efficiency.
  2. Whereas I’ve thought-about the info from April 1, 2005, many of those issue indices had been launched a lot later. Therefore, the outperformance by these issue indices could merely be a results of back-fitting. Efficiency on dwell information could transform underwhelming.
  3. For efficiency metrics, the outcomes will fluctuate primarily based on time-period thought-about. The truth is, you may see that the outcomes are totally different for (April 1, 2005-March 31, 2022) and (January 1, 2009-March 31,2022) information.
  4. Alpha (extra returns) from an funding technique can shrink if critical cash chases the technique. As an illustration, for a number of the methods/issue indices, the index funds/ETFs have been launched very lately.

Supply/Further Hyperlinks

NiftyIndices

Nifty Indices: Methodology

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