Multi-Factor Mutual Funds Growing in Popularity in India

Factor investing helps pick stocks based on certain traits, like quality or momentum.

In India, many funds use this method.

However, relying on just one trait can be risky because these traits go in and out of favor over time.

Multi-factor funds combine several traits, like quality and low volatility, to create a more balanced approach.

This helps avoid the downsides of single-factor investing.

While multi-factor funds show promise, the new ones don't have much history to show how well they perform over time.