Table of Content

1. Unit Linked Insurance Plans (ULIP)

2. What is the Nifty 200 Alpha 30 Index?

3. Nifty 200 Alpha 30 Index: Constituents & Selection Methodology

4. What are the key sectors in the Nifty 200 Alpha 30 Index?

5. Stock Selection Criteria and Weighting Methodology for NIFTY 200 Alpha 30 Index

6. What are the key stocks under Nifty 200 Alpha 30?

7. How has the performance of Nifty 200 Alpha 30 and other indices been?

Unit Linked Insurance Plans (ULIP)

ULIPs are a type of life insurance that provides life cover in case of an unfortunate event along with an opportunity to invest in market linked assets such as equity, debt, or balanced funds. The funds you choose can depend on your risk tolerance, time horizon, and financial needs. In ULIPs, the investment risk in the investment portfolio is borne by the policyholder. The Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender/withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year.

What is the Nifty 200 Alpha 30 Index?

The Nifty200 Alpha 30 index consists of thirty stocks that are chosen from its parent index, Nifty 200, based on 'Jensen's Alpha'. The weight of all 30 stocks in the index is based on each of their alpha scores.

Simply put, Jensen's Alpha is a performance-based risk-adjusted metric which measures compares the return of either a portfolio or an investment, above or below the return predicted as per the capital asset pricing model (CAPM). The index works on a simple idea, that stocks which have historically performed well in recent past hold the potential to continue to perform quite well in future.

Nifty Alpha 30 Fund is benchmarked to NIFTY 200 ALPHA 30 INDEX and is available with the following ULIP Plans-

• HDFC Life Sampoorn Nivesh (UIN: 101L103V03)
• HDFC Life Smart Protect Plan (UIN: 101L175V03)
• HDFC Life Click 2 Invest ULIP (UIN: 101L100V05)
• HDFC Life Click 2 Wealth (UIN: 101L133V03)

Nifty 200 Alpha 30 Index: Constituents & Selection Methodology

The key features of the Nifty 200 Alpha 30 Index are:

• The Nifty 200 Alpha 30 Index has a base date set as April 1st, 2005, and a base value equal to 1000.
• Stocks would be eligible for inclusion in the index if they are available for trading in the derivative segment (F&O) on the effective date.
• Thirty (30) stocks are chosen for inclusion based on Jensen's Alpha
• The weight of each of the stocks in the Nifty 200 Alpha 30 Index is based on their alpha scores.
• Stock weights are capped either at 5% or 5 times the stock’s weight in the index, whichever is lower, based on only the free float market capitalization.
• The Nifty 200 Alpha 300 index is rebalanced quarterly in the months of March, June, September, as well as December, using the data as on the last trading day of each of the preceding months- February, May, August, and November, respectively.

What are the key sectors in the Nifty 200 Alpha 30 Index?

The key sectors in which the Nifty 200 Alpha 300 Index invests are capital goods, financial services, healthcare, oil, gas, and consumable fuels, automobiles and auto components, services, consumer services, consumer durables, information technology (IT), realty, metals and mining, power, and telecommunication. Here is breakdown of weightage of each of these sectors.

Stock Selection Criteria and Weighting Methodology for NIFTY 200 Alpha 30 Index

• Stocks that are either a part of or are going to form a part of the Nifty 200 index at the time of review are eligible to be included in the NIFTY 200 Alpha 30 Index.
• Stocks should mandatorily have at least one year of listing history as of the date of cut-off.
• Stocks should be available for trading in the derivative segment (F&O) on the effective date.
• Stocks should also possess a positive Jensen’s Alpha. Top 30 stocks having the highest Jensen’s Alpha value are included in the index.
• Every included stock’s weight gets limited to either 5 times the stock’s weight in the Nifty 200 Alpha 30 index or at 5%, whichever turns out to be lower, based on the free float market cap.

It is also noteworthy that the weight of the Nifty 200 alpha 30 index constituents is quarterly capped in the months of March, June, September, as well as December.

What are the key stocks under Nifty 200 Alpha 30?

The key stocks that possess the highest weightage in the Nifty 200 Alpha 30 index are Power Finance Corporation Ltd., Bharat Heavy Electricals Ltd., Hindustan Aeronautics Ltd., REC Ltd., Trent Ltd., Dixon Technologies (India) Ltd., Lupin Ltd., Aurobindo Pharma Ltd., Bharat Electronics Ltd. and Hindustan Petroleum Corporation Ltd.

All the 30 stocks listed in the Nifty 200 Alpha 30 index, as per NSE, are as follows:

1. ABB India Ltd.

2. Adani Ports and Special Economic Zone Ltd.

3. Aurobindo Pharma Ltd.

4. Bajaj Auto Ltd.

5. Bharat Electronics Ltd.

6. Bharat Heavy Electricals Ltd.

7. Coal India Ltd.

8. Cummins India Ltd.

9. Dixon Technologies (India) Ltd.

10. GMR Airports Infrastructure Ltd.

11. HDFC Asset Management Company Ltd.

12. Hindustan Aeronautics Ltd.

13. Hindustan Petroleum Corporation Ltd.

14. Indian Oil Corporation Ltd.

15. Indus Towers Ltd.

16. Lupin Ltd.

17. NMDC Ltd.

18. NTPC Ltd.

19. Oracle Financial Services Software Ltd.

20. Polycab India Ltd.

21. Power Finance Corporation Ltd.

22. Punjab National Bank

23. REC Ltd.

24. Samvardhana Motherson International Ltd.

25. Siemens Ltd.

26. TVS Motor Company Ltd.

27. Tata Motors Ltd.

28. Trent Ltd.

29. Vodafone Idea Ltd.

30. Zydus Lifesciences Ltd.

How has the performance of Nifty 200 Alpha 30 and other indices been?

Source: https://www.niftyindices.com/Factsheet/Factsheet_Nifty200Alpha30.pdf and https://www.niftyindices.com/Factsheet/ind_nifty_200.pdf

Returns as of June 30, 2024

Returns of Nifty 200 Alpha 30

Source: https://www.niftyindices.com/Factsheet/Factsheet_Nifty200Alpha30.pdf

Returns as of June 30, 2024

The above information is only mentioned with the purpose of providing you with details of the Nifty 200 Alpha 30 Index.