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An analysis of AUM of smart beta funds done by Cafemutual shows that momentum funds and low volatility funds are the most sought-after smart beta categories among investors.
While the momentum factor picks stocks that are going up faster than the overall market in terms of price movement, low volatility factors select stocks which have lower standard deviation than the broad-based market.
Our analysis shows that smart beta funds manage AUM of Rs.21,700 crore in August 2024. Of this, momentum funds account for over 50% of the total smart beta assets at Rs. 10,850 crore.
Low volatility funds have the second highest AUM of Rs. 7400 crore.
Value factor is a distant third with an AUM of Rs. 2600 crore whereas quality factor comes fourth with an AUM of Rs. 600 crore.
Please note that we have included multi factor smart beta funds for this analysis. Multi factor smart beta funds combine two or more factors to create a basket of stocks like alpha and low volatility.
Let us look at the data to know more.
Rs. crore
|
Factor |
AUM |
|
Momentum |
10850 |
|
Low Volatility |
7417 |
|
Value |
2629 |
|
Quality |
639 |
|
Other |
197 |
|
Total |
21732 |
Here’s the list of smart beta funds based on AUM.
|
Scheme Name |
Daily AUM (Rs. crore) |
|
UTI Nifty200 Momentum 30 Index Fund |
7,592 |
|
ICICI Prudential Nifty 100 Low Volatility 30 ETF |
3196 |
|
ICICI Prudential Nifty Alpha Low- Volatility 30 ETF |
1324 |
|
Bandhan Nifty100 Low Volatility 30 Index Fund |
1,021 |
|
Nippon India Nifty 50 Value 20 Index Fund |
809 |
|
Motilal Oswal BSE Enhanced Value Index Fund |
789 |
|
Nippon India Nifty Alpha Low Volatility 30 Index Fund |
786 |
|
Motilal Oswal Nifty 200 Momentum 30 Index Fund |
779 |
|
Edelweiss Nifty Midcap150 Momentum 50 Index Fund |
582 |
|
Tata Nifty Midcap 150 Momentum 50 Index Fund |
526 |
|
UTI BSE Low Volatility Index Fund |
490 |
|
UTI Nifty 500 Value 50 Index Fund |
483 |
|
ICICI Prudential Nifty 200 Momentum 30 Index Fund |
407 |
|
Kotak Nifty 200 Momentum 30 Index Fund |
314 |
|
DSP Nifty Midcap 150 Quality 50 Index Fund |
295 |
|
Kotak Nifty Alpha 50 ETF |
286 |
|
ICICI Prudential Nifty 200 Momentum 30 ETF |
281 |
|
Nippon India ETF Nifty 50 Value 20 |
169 |
|
ICICI Prudential Nifty50 Value 20 ETF |
157 |
|
Kotak Nifty 100 Low Volatility 30 ETF |
139 |
|
Bandhan Nifty200 Momentum 30 Index Fund |
129 |
|
Motilal Oswal BSE Enhanced Value ETF |
119 |
|
SBI Nifty 200 Quality 30 ETF |
109 |
|
Motilal Oswal Nifty 200 Momentum 30 ETF |
105 |
|
DSP Nifty Midcap 150 Quality 50 ETF |
99 |
|
Motilal Oswal BSE Low Volatility Index Fund |
91 |
|
ICICI Prudential Nifty 200 Quality 30 ETF |
80 |
|
Motilal Oswal BSE Low Volatility ETF |
77 |
|
Kotak Nifty 50 Value 20 ETF |
73 |
|
Aditya Birla Sun Life Nifty 200 Momentum 30 ETF |
68 |
|
HDFC NIFTY200 Momentum 30 ETF |
67 |
|
Nippon India ETF Nifty Dividend Opportunities 50 |
66 |
|
Edelweiss Nifty 100 Quality 30 Index Fund |
50 |
|
Aditya Birla Sun Life Nifty 200 Quality 30 ETF |
46 |
|
HDFC NIFTY50 Value 20 ETF |
31 |
|
Motilal Oswal BSE Quality Index Fund |
26 |
|
Motilal Oswal BSE Quality ETF |
19 |
|
Motilal Oswal BSE Financials ex Bank 30 Index Fund |
16 |
|
HDFC NIFTY100 Quality 30 ETF |
14 |
|
HDFC NIFTY100 Low Volatility 30 ETF |
11 |
|
Mirae Asset Nifty 100 Low Volatility 30 ETF |
11 |
Mumbai MFD Sandeep Barvarkar of SRS Financial Services attributes the popularity of momentum funds to their stellar performance in the recent past. He said momentum funds have delivered better risk adjusted returns over other smart beta funds.
When it comes to low volatility funds, Sandeep said they are usually being preferred by HNIs as a safe investment option.
Mumbai MFD Nimish Ashar pointed out that the momentum funds got a first mover advantage as they were launched earlier than other smart beta categories.
Anand MFD Sanjay Patel of Shree Hari Financial Services said that the alpha generating capacity of momentum funds made it a popular choice among investors. He believes that other categories of smart beta funds like Alpha funds and multi factor smart beta funds will gain popularity in days to come.
