Smart-beta funds: How to pick and choose?
4 months ago

Smart-beta funds: How to pick and choose?

Live Mint  

MUMBAI : Smart-beta funds track alternative indices that are variations of regular market indices like the Nifty 50, Nifty 200, or the Nifty 500. View Full Image At the Mint Money Festival 2024, which took place on 22 November in Mumbai, Siddharth Srivastava, head ETF-product and fund manager, Mirae Asset Mutual Fund, explained how smart-beta funds work and can help investors during different phases of the market. Since different smart beta funds do well in different phases and market cycles, it may be a good idea to consider a combination of both market-cap-weighted index funds and multi-factor smart-beta funds in a portfolio," said Vishal Dhawan, founder of Plan Ahead Wealth Advisors. “A basket of different smart-beta funds that have negative or little correlation is also a good idea, as it offers diversification and would help offset the portfolio’s performance when one factor underperforms the other," she added. A multi-factor smart-beta fund or a combination of negatively or less correlated smart-beta funds can help reduce the risk of a single-factor fund, which may underperform when market conditions don’t support that factor.

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Demystifying factor-based investing: A new opportunity for investors
2 months, 2 weeks ago

Demystifying factor-based investing: A new opportunity for investors

Live Mint  

Imagine you’re shopping for shoes on Amazon. For instance, the Nifty Midcap 150 Momentum 50 index averaged a return of 22%, outperforming its broader counterpart, the Nifty Midcap 150 TRI, by 7%. Contrary to the perception that higher returns come with higher risk, factor-based indices often demonstrate lower downside risk. For instance, on a 5-year rolling basis, the Nifty 50 …

HDFC Mutual Fund launches three smart beta exchange traded funds. Details here
2 years, 6 months ago

HDFC Mutual Fund launches three smart beta exchange traded funds. Details here

Live Mint  

HDFC AMC has recently launched new fund offers for three ETFs: Nifty100 Quality30ETF, Nifty50Value20ETF and Nifty Growth Sectors 15ETF to expand their suite of HDFC MF Index Solutions. These schemes fall under smart beta investing category which involves stock selection and weighting that is done based on pre-defined factors as defined in the underlying index methodology by NSE Indices. Particular …

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