Why quality investing outshines value over the long term
Live MintInvesting with a focus on the quality factor involves identifying companies that demonstrate strong financial health, sustainable competitive advantages, and consistent earnings growth. Here's why quality as a factor tends to deliver reasonable returns: Resilience during volatility India’s stock market often experiences higher volatility compared to developed markets. Long-term consistent growth over speculation Quality stocks with strong fundamentals provide stability and consistently compounding returns over the long term. Sectoral concentration Focussing on quality as a factor often leads investors towards sectors, such as FMCG, IT, healthcare and banking, where companies are more likely to display high profitability, low debt, and strong balance sheets.