The Best Factor Index for 2026

追加: 2026-05-16

[00:00:00]If you have invested in factor funds or planning to invest in one, >> [music] >> the big question is which one deserves your money in 2026? To answer this, we analyzed the 10 largest factor indices in India covering momentum, value, quality, alpha, low volatility, and [music] equal weight strategies. First, let's check their returns. Over the last 10 years based on average five-year rolling returns, the Nifty Midcap 150 Momentum 50 delivered the highest returns at 26.6% per year, while the Nifty Alpha 50 was a close second.

[00:00:30]However, returns aren't the be-all and end-all. You also need to check their volatility. On this front, the two high-flying factors, the Nifty Midcap 150 Momentum 50 [music] and the Nifty Alpha 50, were also the most volatile.

[00:00:43]In fact, [music] only two factor indices did relatively well, Nifty Top 10 Equal Weight and Nifty 200 Quality 30. But interestingly, the Nifty 200 Quality 30 was the worst-performing factor in terms of returns. Now, this tells us one thing. Looking at returns and volatility in isolation doesn't give you the complete picture.

[00:01:02]>> [music] >> That's why smart investors focus on risk-adjusted returns, meaning how much returns a factor delivers [music] for every unit of risk taken. So, when we check this metric, the rankings change completely. If [music] you want to know which factor came out on top, watch the full video linked here. It would help you choose the right factor fund for 2026.

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