Nifty Alpha 50 Index tracks the performance of top 50 stocks with high Alphas in last one year. Historically, it has been a diversified 50 stocks index across market segments like Large Cap, Mid Cap and Small Cap and sectors. In order to make the 50 stocks index investible and replicable, criteria's such as high Alpha Value, liquidity and market capitalization are applied while selection of securities. Weights of securities in the index are assigned based on the alpha values i.e. security with highest alpha in the index gets highest weight.
Benchmark: Nifty Alpha 50 Index
Risk Profile: Very High
SFIN No.: ULIF09221/05/24HYAPA50IND116
Disclaimer - Please note that the fund aims to replicate the performance of benchmark index fund, subject to tracking error.
Eligibility Criteria
- Minimum listing history of 1 year of stock
- The stock’s trading frequency should be 100% in the last one-year period
- Top 300 stocks based on free float market capitalization. The 50 stocks are selected which have the highest alpha and the portfolio weightage is in proportion to their alpha value. .
Key Highlights
- The index has a base date of December 31, 2003, with a base value of 1000. However, it was launched on November 19, 2012.
- The review of Nifty Alpha 50 index is undertaken on quarterly basis using data of six-month period ending last trading day of February, May, August and November.
- Alphas of eligible securities are calculated using 1-year trailing prices (Adjusted for corporate actions) and ranked in descending order.
High Growth Potential
The Nifty Alpha 50 Index includes 50 stocks with the highest alpha in the top 300 stocks based on free float market capitalization. The historical allocation suggests that the index is largely tilted towards Mid Cap & Small Cap segment. This segment tends to outperform the market/benchmark in the long-term, offering high growth potential, but also come with relatively higher risk profile.
Passive Investing
Investing in an index fund that tracks the Nifty Alpha 50 Index is a passive approach, which means fund manager doesn’t need to make individual stock selection (hands-off approach).
Sector Representation
Sector |
Weight(%) |
---|
Financial Service |
27.73 |
Capital Goods |
23.00 |
Power |
12.28 |
Healthcare |
6.11 |
Reality |
3.78 |
Construction |
7.18 |
Consumer Services |
4.67 |
Information Technology |
2.36 |
Consumer Durables |
5.72 |
Metals & Mining |
3.38 |
Automobile & Auto Components |
2.33 |
Fast Moving Consumer Goods |
1.00 |
Top Constituents by weightage
Company's Name |
Weight(%) |
---|
Kalyan Jewellers India Ltd. |
3.86 |
Suzlon Energy Ltd. |
3.77 |
Indian Railway Finance Corporation Ltd. |
3.72 |
BSE Ltd. |
3.59 |
Housing & Urban Development Corporation |
3.51 |
REC Ltd. |
3.27 |
Rail Vikas Nigam Ltd. |
3.10 |
Titagarh Rail Systems Ltd. |
3.00 |
SJVN Ltd. |
2.82 |
Bharat Heavy Electricals Ltd. |
2.75 |
Source: NSE, Respective Index Factsheets, Data as on 31 July 2024
Nifty Alpha 50 Index Performance:
Sources
NSE, Respective Index Factsheets, Data as on 31 July 2024
URL- https://www.niftyindices.com/Factsheet/Factsheet_Nifty_Alpha50.pdf