10-year performance tracker of factor-based investment strategies: Quality vs Alpha; which stood first in the last decade

Alpha and Value shine over the long run In 2026, the value strategy continues to dominate after leading in 2025, driven by investor preference for cheaper stocks. Stronger earnings expectations in cyclical sectors such as financials, metals, and energy have further reinforced the appeal of value-oriented companies.

The alpha strategy has held up well, showing that stock selection remains effective in cushioning downside risks. compared to the broader market. Alpha drivers in areas like financial services and capital goods have provided resilience.


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Meanwhile, the low volatility strategy slipped in rankings compared to 2025, reflecting reduced demand for defensive positioning. Valuation premiums in defensive stocks have eroded their relative attractiveness.

On the other hand, the quality strategy has underperformed in 2026 so far, weighed down by heavy foreign investor selling and its significant exposure to the Information Technology and Fast-Moving Consumer Goods sectors. These sectors are facing challenges from Artificial Intelligence (AI) driven rotations and margin pressures, further dampening performance.

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Long-term view

Over the past decade, alpha delivered the strongest compounded returns, underscoring the value of stock selection. Value and momentum also showed robust longterm results by capturing undervalued stocks and market trends.

Source: NSE. *2026 data is year-to-date based on 2 March 2026 closing values. Other years’ returns are calculated between the first and the last trading day closing values. The 10-year return is the compounded average return. Indices considered: Equal Weight: Nifty100 Equal Weight, Low Volatility: Nifty100 Low Volatility 30, Alpha: Nifty200 Alpha 30, Momentum: Nifty200 Momentum 30, Quality: Nifty200 Quality 30, Value: Nifty200 Value 30, Nifty 500: Nifty 500.