New Delhi, May 12 -- MUMBAI: With the Nifty 50 correcting more than 11% in March amid the West Asia conflict, low-volatility funds are drawing attention for their ability to cushion investors against sharp market swings. These passive funds track low-volatility indices, investing in stocks selected on the basis of volatility scores rather than underlying business fundamentals.

Over the past six months, funds tracking the Nifty100 Low Volatility 30 Index have declined a little over 4.5%, compared with a more than 7% fall in the Nifty 50 as of May 11. In March alone, these funds fell around 10%, versus the Nifty 50's decline of over 11%. Over a one-year period, funds linked to the low-volatility index are up more than 3.5%, while the Nifty...