Factor Investing In Mutual Funds

A blend of active and passive fund management approaches, factor investing offers diversification, but investors should ensure these factors align with their goals and risk profiles

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Outlook Money recently hosted a webinar as part of its “Investment Made Easy” series, spearheaded by ICICI Prudential Asset Management Company. The session, moderated by Versha Jain, featured experts Mr. Chintan Haria, Principal Investment Strategy at ICICI Prudential AMC, and Mr. Pratik Sinha, Director, Deep Wealth a seasoned advisor with extensive experience in asset management.

Understanding Factor Investing

Versha Jain kicked off the session by explaining the concept of factor investing.

Mr. Haria elaborated on the principles of factor investing, stating: “Factor investing is about selecting stocks based on defined factors such as momentum, alpha, low volatility, and value”. He emphasised that it blends passive and active management strategies, thereby offering a diversified approach to mutual fund investments.

The Mechanics of Factor Investing