Factor Investing (Smart Beta)
Don't just buy "The Market". Buy the drivers of the market (Momentum, Value, Quality) based on the current economic cycle to potentially generate higher alpha.
Optimize for the Market Cycle
Don't just buy "The Market". Allocate dynamically to factors like Momentum, Value, and Quality based on current economic conditions.
Strategy Configuration
₹5.00 L
Strategy Logic
"Bullish" Approach
Aggressive growth focus. Chasing winners in an uptrending market.
Factor Tilt Analysis
Momentum
Stocks that have performed well recently.
Nifty 200 Momentum 30 Index Funds
Quality
High ROE, low debt, consistent earnings.
Nifty 200 Quality 30 / Flexicap Funds
Value
Undervalued stocks relative to fundamentals.
Nifty 500 Value 50 / Dividend Yield Funds
Low Volatility
Stocks with lower price fluctuations.
Nifty Low Volatility 30 Index Funds
What are Factors?
Factors are specific characteristics of stocks that explain their returns over time. The most proven ones are Value, Momentum, Quality, Size, and Low Volatility.
Why Smart Beta?
Market Cap weighting (like Nifty 50) is "blind". Smart Beta uses alternative weighting schemes to capture "Factor Premia" - excess returns for taking specific risks.
Cyclicality
No factor works all the time. Momentum works in trends, Low Volatility in crashes, and Value in recoveries. Rotating between them can smooth returns.