Investment word of the day: Factor investing — meaning, types, significance & more; all you need to know

Investment word of the day: An investment approach that chooses securities based on specific characteristics that determine risk and return is known as factor investing. It aims to boost returns, manage risks and enhance diversification by strategically focusing on particular factors. Types of factors The two major types of factors that influence investments are macroeconomic…

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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…

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