What is the NIFTY 200 Alpha 30 Index?
The NIFTY 200 Alpha 30 is a stock market index created by Nifty Indices in India. It tracks the performance of 30 large-cap companies specifically chosen from the broader NIFTY 200 index. Here's what makes this index unique:
-
Focus on Alpha: The NIFTY 200 Alpha 30 uses a factor called "Jensen's Alpha" to pick its member stocks. Jensen's Alpha measures a stock's performance compared to the returns expected based solely on its market capitalization. Companies with positive alpha are seen as outperforming the market, and these are the ones that get included in the NIFTY 200 Alpha 30.
-
Weight by Alpha Score: Not all companies in the NIFTY 200 Alpha 30 have the same weight. The weight of each stock in the index is based on its Jensen's Alpha score. Companies with higher alpha scores have a greater influence on the overall index performance.
-
Capped Weighting: To prevent any single company from dominating the index, there's a cap on how much weight a stock can have. The maximum weight is set at the lower of 5% or five times the weight the stock has in the regular NIFTY 200 (based on market capitalization).
Key Features of NIFTY 200 Alpha 30 Index
The NIFTY 200 Alpha 30 Index is an equity index designed to capture potential outperformance relative to the broader market. Here are its key features:
-
The index selects 30 stocks from its parent, the NIFTY 200 index.
-
Stocks are chosen based on Jensen's Alpha. This metric measures a stock's return relative to the expected return based on the Capital Asset Pricing Model. Simply put, it identifies stocks that have historically outperformed expectations. Only stocks with positive Jensen's Alpha qualify for inclusion.
-
The weight of each stock in the index is based on its Jensen's Alpha score. Higher alpha scores translate to a larger weighting in the index. This tilts the index towards stocks with a greater potential for outperformance.
-
To prevent excessive concentration in any single stock, weights are capped at the lower of 5% of the index or 5 times the stock's weight based on free-float market capitalization. This ensures diversification and reduces exposure to any individual company.
-
The index is rebalanced quarterly to reflect changes in alpha scores and market conditions. This ensures the index stays focused on capturing alpha-generating stocks.
Information About NIFTY 200 Alpha 30 Index
| Particulars |
Details |
| Launch Date |
21 July 2022 |
| No. of Constituents |
30 |
| Base Date |
1 April 2005 |
| Base Value |
1000 |
| Calculation Frequency |
Real-Time |
| Methodology |
Alpha Based Weighting |
| Index Rebalancing |
Quarterly |
[Source: nseindia.com] The above mentioned returns are total returns. Data updated as of August 28, 2024.
Performance of NIFTY 200 Alpha 30 Index and Other Indices
NIFTY 200 Alpha 30 Index has outperformed the NIFTY 200 by a considerable margin over the long term in the last 3-year, 5-year, and 10-year periods.
and since inception.
| Index Name |
3-Year Returns |
5-Year Returns |
10-Year Returns |
| NIFTY 200 Alpha 30 |
28.97% |
34.24% |
25.89% |
| NIFTY 200 |
17.50% |
18.67% |
14.95% |
| Nifty 100 |
18.10% |
19.70% |
14.40% |
| Nifty Midcap 100 |
28.10% |
30.90% |
19.50% |
| Nifty Smallcap 100 |
22.00% |
29.40% |
15.40% |
[Source: nseindia.com] The above-mentioned returns are total returns. Data as of August 01, 2024.
Which are the Constituent Stocks of the NIFTY 200 Alpha 30 Index?
| Company’s Name |
Weightage (%) |
| REC Ltd. |
5.77 |
| Power Finance Corporation Ltd. |
5.38 |
| Trent Ltd. |
5.11 |
| Bharat Heavy Electricals Ltd. |
5.01 |
| Bharat Electronics Ltd. |
4.45 |
| Dixon Technologies (India) Ltd |
4.37 |
| Hindustan Aeronautics Ltd. |
4.28 |
| Indus Towers Ltd. |
4.13 |
| Lupin Ltd. |
3.92 |
| Zydus Life Sciences Ltd. |
3.57 |
| Punjab National Bank |
3.53 |
| NMDC Ltd. |
3.42 |
[Source: nseindia.com] Data updated as of August 28, 2024.
What are the Sectors Included in the NIFTY 200 Alpha 30 Index?
| Top Sectors |
Weightage (%) |
| Capital Goods |
24.49 |
| Financial Services |
17.30 |
| Healthcare |
10.36 |
| Automobile and Auto Components |
9.81 |
| Oil, Gas & Consumable Fuels |
7.34 |
| Telecommunication |
6.30 |
| Services |
5.15 |
| Consumer Services |
5.11 |
| Consumer Durables |
4.37 |
| Metals & Mining |
3.42 |
| Information Technology |
3.27 |
| Power |
3.08 |
[Source: nseindia.com] Data updated as of August 28, 2024.
NIFTY 200 Alpha 30 Index Fundamentals
| P/E* |
P/B** |
Dividend Yield |
| 27.13 |
5.38 |
1.14 |
*P/E: Price-to-Earnings Ratio **P/B: Price-to-Book Ratio Data updated as of August 28, 2024.
How to Invest in NIFTY 200 Alpha 30 Index Fund Through Policybazaar?
Follow the steps below:
Step 1: Enter your name and contact number in the form available on this page.
NOTE: Your credentials are completely secure and will be used to provide you with personalised plan benefits.
Step 2: Insert essential information such as your city, age, and name.
Step 3: Compare from the following funds available with different investment plans-
Use the criteria like their performance, ratings, and other relevant information.
Step 4: Select the investment option that suits your risk tolerance, budget, and financial goals.
Step 5: Select "Invest Now" and proceed by following the prompts displayed on the screen to finalise your purchase.
Step 6: Provide the required KYC details and complete the payment procedure.
Step 7: Upon successful payment, you will receive confirmation of your purchase.
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
Compare & Choose 30+ Plans and 150+ Fund options
