Archive · 25 Jul 2025
Mutual Funds Launch New Active Factor Funds
Investment companies are creating new types of funds called "active factor funds."
These funds use special computer models that look at things like a company's recent success or how stable it is.
Unlike older, passive funds, active funds can adjust their investments based on what's happening in the market, potentially making better choices.
Several companies are now offering these new types of funds, giving investors more options.
The active approach gives fund managers more control, potentially leading to better performance by making smarter decisions about which stocks to include in the fund.
Mutual funds are increasingly launching active factor funds, expanding from passive strategies.
ICICI Pru Active Momentum Fund and Bandhan Multi-Factor Fund are currently open for subscription.
Active factor funds allow fund managers to dynamically allocate between factors and manage risks.
Active factor funds may incorporate subjective elements, like corporate governance filters.
Several fund houses have adopted quantitative strategies in their investment approaches.
- Who
- Mutual fund companies and investors.
- What
- Mutual funds are increasingly launching active factor funds.
- When
- Recent launches and ongoing development.
- Where
- Across the mutual fund industry.
- Why
- To provide more dynamic investment options and potentially better returns.
Passive Funds
Active Funds
Fund strategy
Passive Funds
Passive funds already exist.
Active Funds
Active funds offer more flexibility and potential for higher returns.
- New NFOs
- ICICI Pru Active Momentum Fund, Bandhan Multi-Factor Fund
- Fund type
- Active factor funds
- Key factors used
- Momentum, quality, value, size, market volatility
- Active approach benefits
- Dynamic allocation, risk management, potential for alpha
- Active funds advantages
- More subjective elements can be applied to the decision making process