A Deep Dive Into Factor Investing

Historical Performance of Factor Investing

Over the last one year the Indian stock markets have displayed strength and resilience by outperforming all the major global equity markets. Concurrently, factor investing has been thrust into the limelight and is gaining traction among investors. In this special feature, Armaan Madhani helps us delve deep to understand factor investing and explore its history, pros, cons and historical performance in the Indian as well as global capital markets 

BlackRock Inc., an American multi-national investment company, is a leader in factor investing that launched the first factor fund in 1971 and has been driving innovation in the category for over 40 years. As per BlackRock, the concept of factor investing is an investment strategy used to select assets based on a specific set of attributes and factors. In simple words, this strategy can also be referred to as a combination of active and passive investment strategies. Investors who want to follow factor investing identify the characteristics they look for in security.