In the last decade, especially since 2008, factor investing has gained popularity as it marries active and passive investing, thereby becoming the third pillar of investing. This has led to the advent of passive investing, which is predominantly led by EPFO and CPSE mandates. However, with online platforms offering investment products, passive investing is proliferating faster. Factor investing focuses on macro and micro fundamentals (quality, value, size factors) on one hand, with passive variables (momentum, standard deviation, alpha factors) on the other. In bull phase alpha, momentum and value perform the best.

Source: Mint August 09, 2021 20:23 UTC