'Factor investing is a proven strategy gaining traction in India'

How is your team viewing the current market valuations and preparing for possible corrections? Markets can be up; markets can be down. In my opinion, 'diversification' is the closest to obtaining some kind of a 'free lunch' in investments, and asset allocation works on the principle of diversifying across various asset classes. It is well established that different asset categories like equities, fixed income, gold and real estate perform or behave differently under different market conditions. Unfortunately, investors spend a lot of time and energy predicting the future winning stock or sector and timing market entries and exits. Still, there is no crystal ball available to help pick future winners. Diversifying a portfolio into various asset categories is one of the best risk mitigation tools. One of t

This article was originally published on November 07, 2024.