The utility of factor investing in building your equity portfolio

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. Similarly, the returns of an equity portfolio can be attributed to various factors such as market capitalization (m-cap), momentum, value, quality, and volatility. Typically, the majority of Indian mutual fund investors focus on one factor—size or m-cap, which is measured by multiplying the number of a company’s outstanding equity shares by the current market price of each share.

Click here for more