Factor indices: Alpha leads the pack while Equal Weight holds firm in 2026

Alpha and Momentum lead the long-term factor pack

The Alpha strategy has emerged as the best-performing factor in 2026 so far, highlighting the market's preference for companies generating superior stock specific returns. The Equal Weight strategy followed closely, benefiting from wider market participation and less concentra tion in large-cap stocks. Its strong outper formance versus the market-cap-weighted Nifty 500 suggests that gains have been broad-based rather than confined to index heavyweights. The Value strategy gained from investors rotating into attractively valued cyclical stocks. Momentum, while a strong long-term performer, witnessed higher volatility this year. Meanwhile, Quality and Low Volatility underper formed. Quality was hurt by its tilt towards information Technology (IT) and consumer stocks, whereas Low Volatility lagged as investor preference shifted from defensive sectors to cyclical and growth themes.

Long-term performance

Over the long run, Alpha has emerged as the standout strategy, demonstrating the benefits of a disciplined approach to select ing stocks with superior risk-adjusted char acteristics. Momentum has also performed strongly, supported by the persistence of price trends and the continued strength of winning stocks. Value has delivered healthy returns by benefiting from recurring valua tion re-ratings, particularly during econom ic and earnings recoveries. Quality and Low Volatility occupied the bottom ranks.

Source: NSE. *2026 data is year-to-date based on 11 August 2026 closing values. Other years' returns are calculated between the first and the last trading day closing values. 10-year return is 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