Here’s how various factor-based investing strategies performed in stock market over 11 years and which strategy did best over the long run

Diversified playbook wins amid volatile markets

The value strategy outperforms in 2025 as investors seek undervalued companies with strong potential. As markets grapple with volatility and valuation concerns, value investing has gained importance due to its focus on capital preservation and stability. It has maintained its position among the top three investment strategies since 2021.

The equal-weighted strategy outperformed the market-weighted index, as it offered balanced exposure to market segments and reduced concentration risk.

The alpha strategy struggled in 2025 after ranking among the top two strategies in 2023 and 2024, due to a challenging macro environment.


Considering risk-adjusted returns over the past 11 years using the Sharpe ratio, the momentum strategy tops the charts, while the value strategy is the lowest.

The higher the Sharpe ratio, the better the risk-adjusted returns. The average risk-free rate or 10-year bond yield between 2015 and 2025 is 6.9%.

Source: NSE. *2025 data is year-to-date based on 24 June 2025 closing values. Other years’ returns are calculated between the first and the last trading day closing values. Indices considered-Equal Weight: Nifty 100 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.