Archive · 25 Jul 2025
Mutual Funds Increase Active Factor Fund Launches
Mutual funds are creating new types of funds called 'active factor funds.'
These funds use computer models to pick stocks, focusing on things like a company's recent performance or how much it's worth.
Unlike simple funds that just follow an index, these new funds are managed by people who can make changes based on what's happening in the market.
This gives fund managers more control and the chance to do better than the market.
Mutual funds are launching active factor funds, moving beyond passive strategies.
ICICI Pru Active Momentum Fund and Bandhan Multi-Factor Fund are among the recent NFOs.
The trend aligns with rising adoption of quantitative investing in the MF industry.
Active funds allow dynamic factor allocation and risk management, potentially capturing alpha.
Fund managers can use subjective elements and dynamic models in active factor funds.
- Who
- Fund houses such as ICICI Pru, Bandhan, and Kotak.
- What
- Mutual funds are launching active factor funds.
- When
- Recent launches and ongoing developments.
- Where
- Various mutual funds are offering these.
- Why
- To provide dynamic allocation and potentially capture alpha.
Passive vs. Active
Active Focus
Strategy Comparison
Passive vs. Active
Passive funds offer an established way to invest.
Active Focus
Active funds enable fund managers to allocate dynamically.
- NFOs Open
- ICICI Pru Active Momentum Fund and Bandhan Multi-Factor Fund
- Launch Timeframe
- Recent and upcoming
- Active Momentum Fund Launch
- Samco MF launched first in 2023
- Key Strategy
- Active factor investing
- Approach
- Use of factors such as momentum, quality, and value