Is Factor Investing a Good Investment Strategy?

Factor investing (FI) is a specific type of investment strategy that involves choosing assets depending upon a particular set of attributes or factors. Investors who want to follow the factor investing approach must identify the characteristics they are looking for in a stock. These characteristics will indicate the stock’s success and offer high returns. This specific approach of investing is gaining a lot of popularity in the mutual fund industry all across the world. As a result, several investors are eager to know whether these schemes can be a good bet for their portfolios. In this post, you’ll know what is factor strategies and why it makes sense to invest in factors. What is Factor Investing? It is a specific type of investment strategy that involves active and passive styles of investing to capture high returns at low risks. Funds following the approach of factor investing are built to target specific stocks that show a characteristic that provides returns. Investing in fac...