Best factor (smart beta) indices 2024 | How to get more out of index investing
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 Published On Feb 9, 2024

Index investing has multiple advantages like low cost, less management and simplicity. But if you would like it to be more powerful, you can explore factor or smart-beta indices. These indices are obtained after applying certain criteria to mainstream indices or universes. So, they combine active and passive investing.

While there are numerous factor indices, only 7 are useful from an investment perspective. In this video, we have analysed these 7 factor indices. They are as follows:

- Nifty Alpha 50
- Nifty Alpha Low Volatility 30
- Nifty50 Value 20
- Nifty100 Low Volatility 30
- Nifty100 Quality 30
- Nifty100 Equal Weight
- Nifty50 Equal Weight

We have compared their risk, return and risk-adjusted performance with their parents or the closest available indices. Three out of these seven indices didn’t make the mark, so they were removed. The remaining four factor indices have performed well. You can watch the video to find out what these indices are.

We have also analysed each of these 4 indices in greater detail so that you can pick the right one for you.

Link to the video on the Nifty LargeMidcap 250 index:    • Nifty LargeMidcap 250 index | A bette...  

Chapters

00:00 Introduction
01:25 What is factor investing?
03:47 Hunting for the best factors
05:17 Performance comparison of factor indices
08:41 Which factor index should you go for?

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