Kotak Nifty Alpha 50 ETF tracks ‘Nifty Alpha 50 index’, which measures the performance of the top 50 stocks in terms of higher alpha chosen from the universe of 300 companies
Smart-beta funds, focussed on Nifty100 Low Volatility 30 Index, aim to reduce volatility when equity markets ride high and experts predict a correction ahead. But even diversified funds invest in such stocks
Smart beta funds focusing on quality prefer to invest in quality companies with high valuation and strong cash flows. These funds are likely to offer good downside protection and tend to outperform in bear markets
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Smart-beta funds add a layer of active fund management over passive market indices. But just like thematic funds, one smart-beta can be quite different from another.
The indices they follow are constructed based on a variety of fundamental, technical or other filters
Only if your portfolio is already well diversified, can you consider having one such fund in your portfolio
Smart Beta Funds not only seek to improve returns for investors they also reduce risks and enhance diversification by combining the characteristics of both active and passive investing