Nifty @20K: Can these low volatile stocks cushion your portfolio volatility?

Smart beta funds that track Nifty100 Low Volatility 30 Index offer a portfolio of less-volatile stocks. These funds tend to do well when the equity markets are traded with high volatility. The stocks in the basket are chosen from the top 100 bluechip stocks that were traded with relatively low volatility in the last one year. Here, the volatility is measured using the standard deviation. Given the relatively less-aggressive stock selection approach, these funds have managed to deliver better performance in downturns that help them to outperform the broader market indices with a decent margin over the long run. Here are the top 10 stocks within the basket of the Nifty100 Low Volatility 30 Index and a look at how many diversified funds hold them. Stocks list was as of September 29, 2023. Source: Niftyindices.com and ACEMF

Sun Pharmaceutical Industries
Weightage: 4.1%
Sector: Pharmaceuticals
Active equity schemes that held the stock: 266

ICICI Bank
Weightage: 3.9%
Sector: Banks
Active equity schemes that held the stock: 407

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Nestle India
Weightage: 3.8%
Sector: Food Products
Active equity schemes that held the stock: 120

Hindustan Unilever
Weightage: 3.7%
Sector: FMCG
Active equity schemes that held the stock: 225

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Kotak Mahindra Bank
Weightage: 3.6%
Sector: Banks
Active equity schemes that held the stock: 183

Dr. Reddy's Laboratories
Weightage: 3.6%
Sector: Pharmaceuticals
Active equity schemes that held the stock: 104

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Larsen & Toubro
Weightage: 3.5%
Sector: Construction Project
Active equity schemes that held the stock: 317

HDFC Bank
Weightage: 3.5%
Sector: Banks
Active equity schemes that held the stock: 420

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Indian Oil Corporation
Weightage: 3.5%
Sector: Petroleum Products
Active equity schemes that held the stock: 24

ITC
Weightage: 3.5%
Sector: FMCG
Active equity schemes that held the stock: 233

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