opp icon Factor Focused

Quantitative investing for high returns

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

introducing: Factor Focused

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.

Mirror the Nifty Alpha Low Volatility 30 Index by investing in diverse, low-volatility Nifty 100 stocks for stable returns with less price variation.

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.

Use funds focusing on sectors like Oil, Gas, Power for potential growth.

Indian companies with stable stock prices and potential for consistent returns.

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.

Factor-based strategies can be a smart way to get exposure to equity markets without taking on too much risk.

Factor Focused: pros & cons

benefits

Higher returns by targeting specific attributes
Portfolio diversification beyond market caps
Reduce portfolio risk during market downturns

drawbacks

Factors can go through cycles of underperformance
Requires a deep understanding of different factors
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.

risk rating

High

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.

Age

18-50 years

Risk Profile

Aggresssive

Investment Horizon

3+ Years

Returns Expectations

Outperform traditional market cap-weighted strategies

Ideal Financial goals

Long-term growth, risk management, income generation

current holdings

more Opportunities

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Flexicap Kings

5+ Years investment horizon

19.6%

5 year CAGR

14%

NIFTY 500 TRI - 3Y CAGR

The flexibility to invest in companies of various sizes, aiming for optimal returns by adjusting your portfolio composition based on market conditions and opportunities.