A low volatile portfolio that aims for high returns. Passive investing with a twist
Investment Rationale
While it’s generally believed that higher risk leads to higher returns, research has consistently shown that low-risk stocks often outperform their high-risk counterparts, delivering superior returns. This phenomenon, known as the “Low Risk Anomaly,” challenges the traditional risk-return tradeoff and forms the foundation of low volatility investing.
This smallcase selects low volatility, highly liquid stocks from the top 150 market-cap companies listed on the NSE.
Instead of using an equal-weighted or market-cap-weighted approach, it uses diversification and volatility to determine the portfolio weighting scheme, offering better returns at lower risk levels.
It aims to provide a superior risk-reward profile compared to the Nifty Index and Nifty ETFs.
This smallcase is best suited for passive, long-term investing, focusing on low-risk blue-chip stocks that deliver better risk-adjusted returns than large-cap indices.
