SynopsisWelcome to TrendMap, your guide to the performance of different investment segments. In this edition, we present a 10-year performance tracker of various factor-based investment strategies. The annual returns are ranked for 6 key NSE Factor indices, with a broad-based index, Nifty 500, thrown in for comparison. This map shows that no single-factor strategy consistently outperforms, making a strong case for diversification. By Sameer Bhardwaj.Alpha investing outshines defensive strategiesAlpha investing pays off over the long runInvestors in 2026 have leaned towards Valuation-driven and Alpha-oriented strategies. The Alpha factor has been the standout performer, with stocks that delivered strong historical excess returns continuing to outperform despite volatile markets. The Value strategy has also held up well, as investors increasingly favoured fundamentally inexpensive companies.The Equal Weight index has remained broadly flat, indicating more dispersed returns, with several smaller constituents either holding steady or generating gains. In contrast, the Nifty 500 has declined 3.8%, reflecting broader market weakness.
On the other hand, Quality and Low Volatility factors have underperformed. Traditionally seen as defensive plays during uncertain periods, these strategies have faced a reversal in investor preference this year. Valuation compression has weighed on Quality strategy, while reduced interest in defensive sectors such as consumer staples and utilities has dragged down the performance of Low Volatility strategy.
