NSE Factor Indices 2026: Value Strategy Shines Amid Market Weakness
NSE factor indices 2026: Value strategy outperforms in market slump, 10-year data highlights need for diversification across factors
The Economic TimesImage: The Economic Times
In 2026, Value strategy has emerged as the top performer among NSE factor indices, showing resilience in a declining market. A decade of data indicates that diversification across investment factors is essential, as no single strategy consistently outperforms others.
- 01Value strategy leads in 2026 amid market slump.
- 02Alpha strategy has struggled in recent months.
- 03Defensive factors like Low Volatility and Quality have underperformed.
- 04Long-term data shows Alpha as the most effective strategy over the past decade.
- 05Diversification is crucial as no single-factor strategy consistently outperforms.
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As of April 2026, the performance of various factor-based investment strategies on the National Stock Exchange (NSE) reveals that the Value strategy has outperformed others during a period of market decline. This year has seen a broad-based weakness, with investors gravitating towards undervalued stocks, indicating a defensive shift in preferences. The Alpha strategy, known for its stock-picking prowess, has failed to yield positive returns, while Momentum strategies are also struggling due to a lack of sustained trends. Interestingly, even traditionally defensive strategies like Low Volatility and Quality have underperformed, suggesting that even fundamentally strong companies are facing challenges. Over the past decade, the Alpha strategy has been the most effective, demonstrating its ability to generate excess returns through superior stock selection. The Nifty 500 index has shown lower returns compared to factor-based investing, underscoring the potential benefits of diversification across different strategies.
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Investors may need to reconsider their strategies and focus on diversification to mitigate risks in a volatile market.
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