S & P BSE Low Volatility Index
Index is based on single factor equity portfolio strategy and stocks are selected based on – Low Volatility factor.
We will look at the S&P BSE Low Volatility Index and passive mutual funds based on it. This index tracks the performance of 30 companies listed on the BSE Large Midcap index:
The Low volatility Index is created on a low volatility anomaly. that means lower volatility stocks have outperformed the high volatility stocks on a risk -adjusted basis over medium to long term basis.
Composition of Index
The constituents of the S&P BSE Low Volatility Index as on January 11, 2022.
| Sr.No. | Name | Weight in % | Sr. No. | Name | Weight in % |
| 1 | Pidilite Industries Ltd. | 4.13 | 16 | Alkem Laboratories Ltd. | 3.36 |
| 2 | Gillette India | 4.06 | 17 | Berger Paints India Ltd. | 3.29 |
| 3 | GlaxoSmithKline Pharmaceuticals Ltd. | 4.02 | 18 | HDFC Life Insurance Company Ltd. | 3.13 |
| 4 | Infosys Ltd. | 3.90 | 19 | Torrent Pharmaceuticals Ltd. | 3.12 |
| 5 | Dabur India Ltd. | 3,88 | 20 | Exide Industries Ltd. | 3.02 |
| 6 | Abbot India Ltd. | 3.80 | 21 | HDFC Bank Ltd. | 2.98 |
| 7 | Nestle India Ltd. | 3.79 | 22 | Marico Ltd. | 2.95 |
| 8 | Maruti Suzuki India Ltd. | 3.77 | 23 | Petronet LNG Ltd. | 2.94 |
| 9 | Britannia Industries Ltd. | 3.75 | 24 | Bajaj Auto Ltd. | 2.88 |
| 10 | Tata Consultancy Services Ltd. | 3.62 | 25 | Bayer CropScience Ltd/India | 2.84 |
| 11 | ITC Ltd. | 3.56 | 26 | Castrol India Ltd | 2.82 |
| 12 | Sbi Life Insurance Company Ltd. | 3.50 | 27 | Hero MotoCorp Ltd. | 2.75 |
| 13 | NHPC Ltd. | 3.47 | 28 | Divi’s Laboratories Ltd | 2.67 |
| 14 | Colgate Palmolive India Ltd. | 3.43 | 29 | Amar Raja Batteries Ltd. | 2.66 |
| 15 | Hindustan Unilever Ltd | 3.38 | 30 | Tata Consumer Products Ltd. | 2.54 |
Risk-Return
| CAGR | 1Year | 3Year | 5Year | 10Year | 15Year | |
| S&P BSE Low Volatility TRI | 10.8% | 15.7% | 14.6% | 16.7% | 16.3% | |
| S&P BSE Large and Mid cap TRI | 17.5% | 17.6% | 14.5% | 14.0% | 12.4% | |
| Annualized Volatility | ||||||
| S&P BSE Low Volatility TRI | 12.3% | 16.4% | 14.1% | 13.2% | 16.3% | |
| S&P BSE Large and Mid cap TRI | 15.9% | 21.7% | 18.2% | 16.7% | 21.6% | |
The index represents a diversified stock portfolio of large and midcap companies. The low volatility index based portfolio invest in 30 least volatile stocks from the universe from the BSE Large and Mid cap stocks. The consumer sector gets higher coverage in low volatility index. A few index funds which replicate the S&P BSE low volatility index
Motilal Oswal S&P BSE Low Volatility ETF and Index Fund
NFO Period
Opens- 4 March 2022 -Closes- 16 March 2022
UTI S&P BSE Low volatility Index fund ( NFO)
UTI S&P BSE Low volatility Index fund is another fund that is recently launched in year 2022.
