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


Nifty 200 Momentum 30 and Nifty Alpha 50 indices have given the very best returns. Low Volatility and High quality indices are the least unstable and submit 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 submit. Together with outstanding cap-based indices. On this submit, 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 (Assessment 1) (Assessment 2)
  3. Nifty Midcap 150  
  4. Nifty Smallcap 250
  5. Nifty 200 Momentum 30 (Assessment 1) (Assessment 2)
  6. Nifty 200 High quality 30 (Assessment)
  7. Nifty Alpha 50 (Assessment)
  8. Nifty 100 Low Volatility 30 (Assessment 1) (Assessment 2)
  9. Nifty Alpha Low Volatility 30 (Assessment 1) (Assessment 2)
  10. Nifty 50 Worth 20 Index (NV20) (Assessment)
  11. Nifty 500 Worth 50
  12. Nifty Midcap 150 High quality 50 (Assessment 1) (Assessment 2)

I exploit the information 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 12 months Efficiency

Allow us to begin with calendar yr 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 just from January 1, 2009. For different indices, the information is from April 1, 2005. Within the earlier chart, the efficiency metrics (CAGR, Sharpe ratios, drawdowns) are favourably affected (since market meltdown attributable to international monetary disaster isn’t thought of for NV20). Not honest to different indices. Within the chart beneath, I recalculate the efficiency metrics from January 1, 2009-March 31, 2022.

January 1, 2009 – March 31, 2022

How do you utilize this data?

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

Every technique goes by means of ups and downs and can take a look at your persistence. In the event you decide an funding technique (issue index) merely based mostly on previous efficiency (and with out conviction), you might leap the ship on the unsuitable time.

About the right way to use this data in your portfolio, I’ve written two posts not too long ago.

Methods 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 submit (Methods to assemble “the Greatest portfolio” utilizing index funds and ETFs?) discusses the right way 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 to be tremendous spectacular. Nevertheless, previous efficiency doesn’t assure future efficiency.
  2. Whereas I’ve thought of the information from April 1, 2005, many of those issue indices have been launched a lot later. Therefore, the outperformance by these issue indices might merely be a results of back-fitting. Efficiency on reside information might turn into underwhelming.
  3. For efficiency metrics, the outcomes will range based mostly on time-period thought of. Actually, 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. For example, for among the methods/issue indices, the index funds/ETFs have been launched very not too long ago.

Supply/Further Hyperlinks

NiftyIndices

Nifty Indices: Methodology

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