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
view allFlexicap 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.
Large & Midcap
5+ Years investment horizon
37.48%
3 year CAGR
14%
NIFTY 500 TRI - 3Y CAGR
Curated for those who intend to gain exposure to well-established, mature companies with a history of consistent financial performance.