Alpha Nifty 50

NIFTY Alpha 50 Index aims to measure the performance of securities listed on NSE with high alphas. It is a well-diversified 50 stock
index. In order to make the 50 stock index investible and replicable, criteria's such as liquidity and market capitalization are applied
while selection of securities.
Weights of securities in the index are assigned based on the alpha values i.e. security with highest alpha in the index gets highest
weight.


NIFTY Alpha 50 Index can be used for a variety of purposes such as bench marking fund portfolios, launching of index funds, ETFs
and structured products.
Index Variant: NIFTY Alpha 50 Total Returns Index.

Alpha nifty 50 listed Company



Eligibility Criteria for Selection of Constituent Stocks:
i. Company must rank within the top 300 companies by average free-float market capitalization and aggregate turnover for the last six
months.
ii. The company should have a listing history of 1 year.
iii. The company's trading frequency should be 100% in the last one year period.
iv. The alpha of the eligible securities is calculated using trailing 1 year prices (Adjusted for corporate actions). They are ranked in
descending order.
v. Final selection of 50 companies shall be done based on scrips' Alpha values.
vi. Securities having positive alpha will be selected to form part of the index at each review. In case this criterion is not fulfilled, scrip
with highest alpha in replacement pool will be considered for selection.
Index Re-Balancing:
The index review is carried out using data of six month period ending last trading day of January, April, July and October respectively.
Index Governance:
A professional team at IISL manages NIFTY Alpha 50 Index. There is a three-tier governance structure comprising the Board of
Directors of IISL, the Index Policy Committee and the Index Maintenance Sub-Committee.


Alpha Nifty 50 Alpha Nifty 50 Reviewed by Ideal Stock on February 07, 2018 Rating: 5

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