The Rise of Factor Investing | ET Money




Every 4 decades, the world of investing experiences a significant shift. In the 1930s, it was value investing which brought with it a data-driven information-led approach to valuing companies.

In the 1970s, passive investing via index funds and ETFs gained popularity and in the last decade or so, we are seeing the emergence of factor investing which marries active and passive investing in one potent package.

Now globally financial products linked to factor investing manage over 1.2 trillion dollars in assets which is clearly a big number. And while this number is far ahead of what we have in India the last 12 to 18 months has seen the introduction of a number of factor-based schemes in the ETF and index fund variant.

Infact fund houses have lined up 7 new offerings this month which includes the value, momentum, quality and low volatility factors about which we’ll study in greater details in the coming sections of this video.

📝 CHAPTERS

00:00 Introduction
01:14 Value
03:49 Momentum
05:32 Quality
07:32 Low Volatility
09:16 Summary

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