Fund houses take to factor-based investing
Business Standard|August 27, 2024
The domestic mutual fund (MF) industry is witnessing a shift with factor-based investing, bridging the gap between active and passive approaches.
- ABHISHEK KUMAR

At least three fund houses now manage active funds using factorbased models, while others are exploring this space through quant and active-momentum funds. Factor-based investing employs investment models based on factors such as momentum, company size, value, and market volatility, to construct portfolios. These schemes can be both active and passive, with active offerings using multiple factors and adapting to market cycles. The factor funds on the active side are also referred to as smart-beta funds. This investment approach is also known as rule-based and "quantamental" (portmanteau of quant and fundamental) investing.

The other difference between active and passive funds is that in active funds the final call on stock selection and weights generally lies with the fund manager.

この蚘事は Business Standard の August 27, 2024 版に掲茉されおいたす。

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この蚘事は Business Standard の August 27, 2024 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

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