Go for low-beta stocks to tide over market volatility
When the Sensex and Nifty crashed 3% on Monday, about 60% of the Nifty200 stocks with beta -- a measure of a stock's volatility compared to the overall market -- of less than 1 fell lesser than the market. Some of these stocks rose too.
Synopsis
History suggests that high beta stocks outperform in a bull market, but data for the last one year suggests otherwise. Stocks with a beta of less than one have given an average return of 24.36% in the past year compared to 21,47% by stocks above 1.
As uncertainty over the market's prospects heightens, analysts are advising die-hard equity investors to bet on the less volatile high dividend-paying stocks.When the Sensex and Nifty crashed 3% on Monday, about 60% of the Nifty200 stocks with beta -- a measure of a stock's volatility compared to the overall market -- of less than 1 fell lesser than the market. Some of these stocks rose too.High beta stocks are considered riskier and usually
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