Factor investing has started drawing serious money in India

Factor investing has started drawing serious money in India

Indians have started lapping up a relatively lesser-known type of investment option—factor funds. Inflows into such schemes have surged as awareness grows about this style of stock selection that tracks attributes like size, value, momentum, growth, low volatility, and quality to offer better returns. The assets under management for the category jumped from ₹7,050 crore … Read more

How you can blend investment styles with mutual funds

How you can blend investment styles with mutual funds

You often hear that it is essential to diversify mutual fund investments across asset classes and categories. However, it’s equally crucial to vary investment styles within a category. You can pick a fund following growth investing style and a value style that tend to do well during different cycles of the economy. Growth style typically … Read more

The perennial debate in factor investing: Quality versus value

The perennial debate in factor investing: Quality versus value

Serious investment buffs would broadly define investing into three large buckets, namely active, passive, and factor investing. Active fund management has a strong “natural intelligence” orientation and is largely dependent on the perspicacity of the fund manager. Passive investments remain focused on tracking benchmark compositions to generate benchmark-linked returns. While active and passive investment strategies … Read more