Demystifying factor-based investing: A new opportunity for investors
2 months, 1 week 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 TRI has a downside deviation of 3%, while MMQ 50’s deviation is just 1%, indicating more consistent performance. The combination of higher returns, lower downside risk, and innovative strategies makes factor-based investing a powerful addition to a diversified portfolio.

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Mutual funds: Why passive funds can be a great choice for retail investors to invest in 2025?
Trending News
2 months, 3 weeks ago

Mutual funds: Why passive funds can be a great choice for retail investors to invest in 2025?

Live Mint  

If you are planning to invest in mutual funds this year, one of the dilemmas you may face is choosing between active and passive mutual funds. With the entry barrier for launching index mutual funds kept lower for passive schemes under this framework, retail investors are expected to find these schemes far more lucrative and tempting. They have brought in …

Index Mutual Funds: From types to advantages; all you need to know
3 months, 3 weeks ago

Index Mutual Funds: From types to advantages; all you need to know

Live Mint  

Mutual Funds: Index funds are passive investment vehicles that mirror benchmark indices, investing largely in their components. Index funds function by meticulously tracking the performance of specific benchmark indices, like NIFTY 50 or SENSEX. {{^adFree}} {{/adFree}} Index funds function by meticulously tracking the performance of specific benchmark indices, like NIFTY 50 or SENSEX. Market capitalisation index funds - These funds …

Smart-beta funds: How to pick and choose?
3 months, 3 weeks 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 …

Factor-based funds are catching on in India. Are they right for you?
4 months, 2 weeks ago

Factor-based funds are catching on in India. Are they right for you?

Live Mint  

Passive investing has rapidly gained traction in India, with assets under management of ₹11 trillion, or 16.5% of the ₹68 trillion mutual fund market. Momentum factor funds Momentum factor funds track momentum indices, which include stocks showing strong upward price trends on the expectation that these trends will continue. Low volatility factor funds Low volatility factor investing allows investors to …

The utility of factor investing in building your equity portfolio
1 year, 3 months ago

The utility of factor investing in building your equity portfolio

Live Mint  

The success of a movie at the box office can be attributed to a combination of factors, including a star-studded cast, an engaging storyline, high-paced action sequences, impressive visual effects, etc. This provides an opportunity for investors to allocate based on other factors such as momentum, low volatility, value, and quality, which have low correlation across different market cycles. ‘Nifty200 …

Passive Funds Attracting Investors, Index Funds More Preferred Than ETFs: Survey
1 year, 7 months ago

Passive Funds Attracting Investors, Index Funds More Preferred Than ETFs: Survey

ABP News  

Passive funds have taken centre stage in India's mutual funds market in the past few years, increasing its market share over 17 per cent in 2023 from 1.4 per cent in 2015, according to a Motilal Oswal AMC survey released Tuesday. The survey conducted among 2,000 investors from around the country, showed that 61 per cent of investors have invested …

Passive funds gain traction among investors in India, market share witnesses growth: Study
1 year, 7 months ago

Passive funds gain traction among investors in India, market share witnesses growth: Study

India TV News  

A recent study revealed that passive funds have gained traction among investors in India in the last few years, capturing a market share of over 17 per cent of Assets Under Management in 2023 from 1.4 per cent in 2015. Low-cost nature of passive funds is biggest attraction According to the study by Motilal Oswal Asset Management Company, 61 per …

Index Funds: How beneficial it is for investing in long-term goals
2 years, 2 months ago

Index Funds: How beneficial it is for investing in long-term goals

Live Mint  

Index funds are primarily mutual funds that invest in similar stocks within a specific market index. The main advantage of investing in index funds is that they have low management costs because they match their underlying benchmark and don't need a team of research analysts to help fund managers choose the best stocks, said Mahesh Shukla, CEO & Founder, PayMe. …

What to consider before selecting an index fund
2 years, 5 months ago

What to consider before selecting an index fund

Live Mint  

Active and passive management are two distinct ways of managing portfolios. In India, the first index fund was offered in 2001, and since then index funds have come a long way. A not-so-sophisticated investor might be lured to an index fund whose return is higher than the index or other index funds. The key performance statistic for evaluating index funds …

Invest in a combination of active and index funds instead of sticking to one
4 years, 5 months ago

Invest in a combination of active and index funds instead of sticking to one

Live Mint  

Comparisons between passively-managed index funds and actively-managed equity diversified active funds are common these days. The popularity of index funds and the inclination of investors towards these funds have increased not just because they are expected to outperform active funds in future, but also for their lower expense ratios. This has started reflecting in the percentage of active funds outperforming …

Passive investing rises as large-cap funds underperform
6 years, 3 months ago

Passive investing rises as large-cap funds underperform

Live Mint  

There has been a gradual shift of assets from active to passive management in the US and Europe as a consequence of active managers underperforming index benchmarks, according to a report titled A Glimpse of the Future: India’s Potential in Passive Investing by S&P Dow Jones Indices. A closer look at AUM data shows passive funds have a small share …

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