Most investors suffer from loss aversion bias, i.e. the pain of losing is twice as much as the pain of winning. Therefore, in times of market free-falls, the low volatility strategy may help to decrease the magnitude of the fall.In addition, having a low volatility strategy’s support may also minimize the panic decisions made during the high drawdown phase.
Market rout: 7 of top-10 valued firms see Rs 1.25 lakh crore erosion
The stock continued to remain the most valued listed company in the country despite the decline.