IISL launches 4 multi-factor equity indices
India Index Services & Products Ltd (IISL), an NSE group company, on Thursday launched four multi- factor equity indices, which will provide diversified exposure with varied risk-return profile to investors.
These indices are - Nifty Alpha Low-Volatility 30; Nifty Quality Low-Volatility 30; Nifty Alpha Quality Low-Volatility 30 and Nifty Alpha Quality Value Low-Volatility 30.
They are designed to reflect the performance of portfolio of stocks that are selected based on combination of two or more factors selected from four single factors - Alpha, quality, value and low-volatility. "Investments where stocks are screened based on multiple factors have gained popularity among global investment community.
"By combing the well-established factors used in active investment and rules based framework of passive investment, multi-factor indices tend to have better risk return characteristics compared to traditional market capitalisation and single-factor based index strategies over longer time frame," IISL CEO Mukesh Agarwal said.