NSE indices are primarily focused only on the large-cap index which leaves out the opportunity for other stocks. Next, they rank purely on basis of low volatility which I am not comfortable with – a second layer of momentum i.e. close to their highs is a good parameter for excess returns. The book “High Returns from Low Risk” by Pim Van Vliet has good literature on this approach.
Overall, I want to have a conservative portfolio with first layer of low volatility and second layer of 3-year high based momentum aspect.
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