Factor Focused

Invest in well-established companies

This portfolio combines two strategies to employ factor investing that focuses on specific factors like value, growth, and momentum to construct portfolios.

up arrow43.13% 1Y CAGR

high riskVery High Risk

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22.7%

Average Returns

1+ Lac

Investors

₹1,000+ Cr

AUM

Introducing: Factor Focused

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Factor investing involves selecting investments based on specific attributes (factors) that historically influence stock performance, such as value, growth, volatility, and momentum. Imagine you’re building a winning sports team. Instead of picking individual players, you choose certain qualities they possess, such as speed or skill. In finance, you pick stocks not based on the company, but on specific traits like low risk or high growth potential. This strategy aims to boost returns.

Why Invest in Factor Focused?

Diversification

It pools money from several investors to invest the money in a diversified portfolio consisting of stocks, bonds, mutual funds etc. which helps spread the risk.

Liquidity

It can be accessed anytime and can be liquidated at any point in time which helps during emergencies.

Managed By Experts

Fund Manager have expertise in selecting and monitoring investments. They use research, analysis, and market insights to make informed decisions.

Performance

Current Holdings

Talk to Your Dedicated Wealth Manager

Our wealth team will get in touch with you to assist you in making better investing decisions.

Histrocial returns

Annualised past patterns

historical returns

Histrocial returns

Who Should Invest in this

Age18 years

Risk ProfileAggressive

Investment Horizon5+ Years

Return ExpectationsCompetitive returns by diversifying market-caps.

Ideal Financial goalsWealth creation, asset diversification, education planning

Ideal for quant geeks, this portfolio employs attributes like low volatility and high momentum, capturing distinct risk-return profiles in stocks.

What is Factor Focused Portfolio

Table of Contents

Investment strategyWhat you are investing inHistorical Performance in Global MarketsPros & Cons of Factor Focused InvestingAnnualized Past ReturnsWho should invest in this?

Factor investing involves selecting investments based on specific attributes (factors) that historically influence stock performance, such as value, growth, volatility, and momentum. Imagine you’re building a winning sports team. Instead of picking individual players, you choose certain qualities they possess, such as speed or skill. In finance, you pick stocks not based on the company, but on specific traits like low risk or high growth potential. This strategy aims to boost returns.

Investment strategy

This portfolio combines two strategies to employ factor investing that focuses on specific factors like value, growth, and momentum to construct portfolios. It seeks to outperform the broader market by targeting these factors.

  1. Mirror the Nifty Alpha Low Volatility 30 Index by investing in diverse, low-volatility Nifty 100 stocks for stable returns with less price variation.
  2. Match the Nifty 50 Equal Weight TR Index by investing equally in its 50 stocks, aiming for similar index returns with even weight distribution.

What you are investing in

  • Capture booming sectors like finance, healthcare, FMCG & automobiles. 
  • Invest in India's top 100 companies, each with the same weight in the portfolio.
  • Indian companies with stable stock prices and potential for consistent returns.
  • A well-diversified portfolio that avoids undue concentration in a few stocks/sectors.

Historical Performance in Global Markets

It is observed that factor strategies have a tendency to show healthy outperformance against Nifty 50 during periods when more stocks are outperforming the benchmark index. 

Pros & Cons of Factor Focused Investing

Benefits

Drawbacks

Higher returns by targeting specific attributes.

Factors can go through cycles of underperformance

Portfolio diversification beyond market caps.

Requires a deep understanding of different factors

Reduce portfolio risk during market downturns

Factors have low predictability due to changing market conditions

Annualized Past Returns

The Factor Focused portfolio encompasses a multi-factor strategy combining various attributes like value, growth, and low volatility to seek enhanced returns and diversification.

Who should invest in this?

Investors who are comfortable with potentially higher risk and returns, and who believe in the persistence of certain factors driving stock performance, are well-suited for factor investing. 

However, individuals should possess the willingness to stay invested through market cycles, as factors can exhibit varying performance over time. Factor investing requires a proactive stance, making it particularly appealing to those who enjoy analyzing market trends and adjusting their strategies accordingly.

Frequently Asked Questions

What is Factor Focused Portfolio?

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Factor investing involves selecting investments based on specific attributes (factors) that historically influence stock performance, such as value, growth, volatility, and momentum. Imagine you’re building a winning sports team. Instead of picking individual players, you choose certain qualities they possess, such as speed or skill. In finance, you pick stocks not based on the company, but on specific traits like low risk or high growth potential. This strategy aims to boost returns.

Who Can Invest in Factor Focused Portfolio?

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Ideal for quant geeks, this portfolio employs attributes like low volatility and high momentum, capturing distinct risk-return profiles in stocks.

What is the minimum amount to invest in Flexi Cap Fund?

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You can start investing in Flexi Cap Funds with as little as ₹500 through a Systematic Investment Plan (SIP). For lump sum investments, the minimum is usually ₹1,000.

What is the exit load of Flexi Cap Funds?

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Most Flexi Cap Funds charge an exit load of 1% if you redeem your investment within 1 year. However, the exit load varies by the specific fund.

 

Is Flexi Cap Mutual Fund good for aggressive investors?

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Yes, Flexi Cap Funds are suitable for aggressive investors seeking higher returns. The fund's exposure to small and mid-cap stocks offers growth potential but also comes with higher risks.

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It’s Time to Grow Your Wealth

₹1,000+ cr

AUM

1+ Lac

Investors

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