4 Low Risk and High Return Stocks to Invest

National Stock Exchange has created many indices like Nifty 50, Nifty FMCG, and many others. Out of all the indices, 2 indices Nifty 100 Low Volatility 30 Index and the Nifty 200 Momentum 30 Index. Here some stocks overlap in both the indices and hence will discuss these stocks in brief in this article as we move ahead.

Nifty 100 Low Volatility 30 Index and the Nifty 200 Momentum 30 Index:

Nifty 100 Low Volatility 30 Index: NIFTY100 Low Volatility 30 Index aims to measure the performance of the low volatile securities in the large market capitalization segment. The securities are selected from the NIFTY 100 index and should be available for trading in the derivatives segment(F&O). Here, the Top 30 Stocks are selected from Nifty 100 stocks as per the concerned selection and eligibility criteria.

Nifty 200 Momentum 30 Index: Nifty200 Momentum 30 Index aims to track the performance of the top 30 companies within the Nifty 200 selected based on their Normalised Momentum Score. The Normalised Momentum Score for each company is determined based on its 6-month and 12- month price return, adjusted for its daily price return volatility.

Stocks that Overlaps in both Index:

1. Reliance Industries Limited: In the Nifty 100 Low Volatility 30 Index, Reliance Industries is having weightage of 3.35%, while in the Nifty 200 Momentum 30 Index, the stock is having weightage of 5.14%, near the cap of 5%. Reliance Industries stocks do not witness much volatility whereas the boom in the Oil & Gas sector and momentum in their Telecom & Retail business hence for these possible reasons, the stock is part of both the index.
2. NTPC Limited: In the Nifty 100 Low Volatility 30 Index, NTPC is having weightage of 3.15%, and being a PSU, it does not record much volatility and hence is part of this index. The stock is part of the Nifty 200 Momentum 30 Index possibly due to high traction in the power/renewable energy sector in the recent past.
3. Power Grid Corporation of India: In the Nifty 100 Low Volatility 30 Index, NTPC is having weightage of 3.12%, and being a PSU, it does not record much volatility and hence is part of this index. The stock is part of the Nifty 200 Momentum 30 Index possibly due to high traction in the power/renewable energy sector in the recent past. The stock is having weightage of around 4.9% in this index.
4. ITC: In the Nifty 100 Low Volatility 30 Index, ITC Limited is having weightage of 3.43% due to a high dividend yield and low volatility stock. In the Nifty 200 Momentum 30 Index, the stock is having weightage of 4.98%, near the cap of 5%.

What Should Investors Do?

The Nifty 100 Low Volatility 30 Index is an index suitable for investors with a low-risk appetite whereas the Nifty 200 Momentum 30 Index is suitable for risk-taking or growth investors, one can choose it according to their risk-taking appetite and return expectation. The discussed 4 stocks are the stocks that overlap in both the index and hence possess the trait of both the index. Investors should keep this stock on their radar and should take investment calls only with the proper analysis/guidance of a capable financial advisor.

Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.

Originally Published On:https://blog.investyadnya.in/4-low-risk-and-high-return-stocks-to-invest/