Latest news with #Nifty200
Time of India
23-07-2025
- Business
- Time of India
Are factor funds the future of investing or just a risky trend?
Fund houses are increasingly launching factor-based strategies as they expand their product suite even as quant strategies gain acceptance from investors. WHAT ARE FACTOR FUNDS ? Explore courses from Top Institutes in Please select course: Select a Course Category Project Management Data Science Product Management Technology others Management Cybersecurity Finance Public Policy Others CXO healthcare PGDM Data Science Healthcare MBA Leadership Digital Marketing Data Analytics Artificial Intelligence MCA Design Thinking Degree Operations Management Skills you'll gain: Project Planning & Governance Agile Software Development Practices Project Management Tools & Software Techniques Scrum Framework Duration: 12 Weeks Indian School of Business Certificate Programme in IT Project Management Starts on Jun 20, 2024 Get Details Skills you'll gain: Portfolio Management Project Planning & Risk Analysis Strategic Project/Portfolio Selection Adaptive & Agile Project Management Duration: 6 Months IIT Delhi Certificate Programme in Project Management Starts on May 30, 2024 Get Details Factor funds are a type of investment fund that use specific and measurable characteristics, or factors, to select stocks while building the portfolio. The aim is to enhance returns and manage risk in a systematic way. These schemes use factors like value, quality, momentum, and low volatility to create a portfolio of stocks based on pre-defined rules, rather than simply tracking market-cap indices like the Nifty 50 or Nifty Next 50. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » WHAT TYPES OF FACTOR FUNDS ARE AVAILABLE? Indian investors have access to a mix of active and passive factor funds based on factors such as value, momentum, quality, and low volatility. There are several schemes built around these strategies, such as the Nifty 200 Momentum 30, Nifty 100 Quality 30, and Nifty 50 Value 20. Some fund houses also offer active multi-factor strategies and active strategies around individual factors. These funds are slowly gaining popularity among wealthy investors and family offices, with retail investors also beginning to participate. The most popular factor funds currently are those based on the momentum strategy. HOW ARE FACTOR FUNDS DIFFERENT FROM TRADITIONAL ACTIVELY MANAGED OR PASSIVE FUNDS? Active funds rely on a fund manager's discretion to build a stock portfolio, while passive funds simply mimic an index. Factor funds, by contrast, use pre-defined investment rules based on a number of factors or characteristics. For example, a fund may start with a market-cap index like the Nifty 200, apply a momentum filter, and build a portfolio of about 30 stocks. Live Events WHAT ARE THE BENEFITS AND DISADVANTAGES OF FACTOR INVESTING? Financial planners believe investors should diversify their equity portfolios to reduce risk. Factor-based investing helps achieve this by diversifying equity exposure and reducing fund manager bias. Each factor tends to respond differently to various economic cycles. Combining multiple factors can help spread risk across a portfolio. However, factor funds often have higher expense ratios than traditional index funds because they require more active management, research, and analysis to identify and select stocks based on the chosen factors. They can also be vulnerable to shifts in market conditions. Certain factors, such as value or momentum, may perform well during specific market cycles but struggle during others—for instance, value stocks might underperform during growth periods, while momentum stocks may lag in a stagnant market. As a result, factor funds are subject to market cycles and may not always deliver consistent returns
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Business Standard
17-07-2025
- Business
- Business Standard
Factor fund launches shift to active space with momentum, multi-factor
The factor fund launch spree by mutual funds (MFs) is moving from the passive to the active space. Two new fund offerings (NFOs) — ICICI Prudential Active Momentum Fund and Bandhan Multi-Factor Fund — are currently open for subscription. Sundaram MF's multi-factor fund NFO closed on Wednesday. In addition, Kotak MF is set to launch an active momentum fund later this month. Mirae Asset MF also has plans to launch a multi-factor fund through the fund-of-funds route. The launches in the active factor space coincide with the rising adoption of quantitative investing in the MF industry. Fund houses have been investing in setting up quantitative investing capabilities in recent years. Factor funds, which use investment models that focus on one or multiple factors — such as momentum, quality, value, size and market volatility — to construct portfolios, were until recently limited to the passive space, except for value- and size-based funds. Samco MF launched the first actively managed momentum fund in 2023. Since then, several fund houses have ventured into the active factor space with momentum, multi-factor and quality funds. These include active quality funds from WhiteOak Capital and ICICI Prudential, and active momentum funds from Union, Nippon India and Motilal Oswal. In addition, there are at least three schemes that take a multi-factor approach, including SBI MF's quant fund. The launches are happening even as the passive space has multiple factor fund offerings. Several such index funds and exchange-traded funds (ETFs), which mostly track the Nifty 200 Momentum 30, Nifty 200 Quality 30, Nifty 50 Value 20 and Nifty 100 Low Volatility 30 indices, have been operating for over three years. Experts say that while passive funds are available, there is merit in having active options. 'Market conditions and factor performance cycles are not static — they evolve with macroeconomic shifts, sentiment and valuation regimes. An active approach enables us to dynamically allocate between factors, manage risks more nimbly, and potentially capture alpha by avoiding mechanical exposure to underperforming segments,' said Chintan Haria, principal – investment strategy, ICICI Prudential Mutual Fund. 'While active factor funds also rely on factor models to shortlist stocks, they may also use other subjective elements such as corporate governance filters or futuristic expectations in decision-making. Their factor models may also be more dynamic in nature and reviewed by the fund managers periodically,' he said. For instance, while passive momentum funds only rely on price momentum, the recently launched ICICI Prudential MF's active momentum fund uses both earnings and price momentum. The use of factors and quantitative strategies is seeing adoption in regular equity schemes. Edelweiss MF manages the equity portion of four of its active funds through this strategy. NJ Mutual Fund has been managing all its equity and hybrid funds through factor-based strategies since inception. Shriram MF adopted the quantitative approach in September 2023.
Time of India
30-06-2025
- Business
- Time of India
Focus on Quality: Invest in resilient businesses amid uncertainty
1) Exposure to differentiated drivers of returns Live Events 2) Tactical allocation: Potential risks and Underperformance over last few years indicate probable outperformance going forward 3) Strategic allocation: Long-term capital appreciation with lower risk 4) Rules-based investment framework 5) Lower costs Conclusion With the backdrop of several global and domestic geopolitical and macroeconomic headwinds facing Indian equity markets , discussions about Quality investing are re-emerging in investment circles. Quality investing constitutes investing in financially strong and steady businesses with are relatively stable during periods of market Nifty 200 Quality 30 Index includes top 30 companies from the universe of Nifty 200 Index on the basis of 'quality' score. Metrics used to define the Quality score include Returns on Equity, Debt/Equity ratio and Earnings are 5 reasons why one should consider a Nifty 200 Quality 30 index fund to build their Quality exposure:Compared to the Nifty 200, which is a traditional index based on market capitalization of underlying businesses, a factor-based index is built using a differentiated driver of returns – such as Momentum, Low volatility, Value or Quality. Factor-based strategies like a Nifty 200 Quality 30 index fund can complement plain-vanilla indices in an investment portfolio by improving risk-adjusted equity investors have experienced an almost one-way equity rally post the pandemic in 2020. While this has been rewarding, investors now risk becoming complacent. Market fortunes are fundamentally tied to the underlying economic situation, which, as we know, is cyclical i.e. economic upturns are followed by downturns, which are again followed by upturns. Momentum and Value themes have done well during the current upcycle and earnings spurt that we witnessed post-COVID-19. However, now we are in the final stages of that upcycle with signs of normalization becoming evident. As per ICRA , India's GDP growth for financial year 2024-2025 is expected to be 6.3% compared to 9.2% of the previous fiscal. Global factors such as elevated policy uncertainty and heightened trade and geopolitical tensions are also weighing on stock markets. In such an economic environment, the Quality theme that prioritizes investments in resilient, sound businesses with strong balance sheets, are likely to do better than momentum-driven stocks. Given that this style has relatively underperformed over the last few years, high-quality investments are available at reasonable valuations, increasing the probability of outperformance going of April 2025, the Nifty 200 Quality 30 TRI has generated higher average Rolling Returns over 1-, 5- and 10-years horizons compared to Nifty 200 TRI and Nifty 50 TRI. On a CAGR basis too, the Quality style has outperformed the mainstream indices since April 2025. The Quality theme also offers better downside protection during periods of market stress such as the taper tantrum of 2013, when the Nifty 200 Quality 30 TRI limited downside to 4% compared to Nifty 200 TRI's 14% and Nifty 50 TRI's 13%. Similarly, during the NPA crisis of 2015-16, the Quality-focused index outperformed its plain-vanilla peers by falling only 14% compared to their 20% and 21%.A rules-based strategy like the Nifty 200 Quality 30 index can enable systematic screening of businesses based on fundamentals. This helps avoid emotional decision-making, human biases or errors in times of market euphoria or panic selling.A Nifty 200 Quality 30 index fund uses systematic, rules-based models to identify and invest in stocks. Since there is no need for research or active management, expense ratios of these funds are typically as a factor should ideally be part of an investor's core, long-term oriented portfolio. Given the recent underperformance and as a measure to build resilience in the face of ongoing uncertainty on the global as well as domestic fronts, now is a suitable time to accumulate a Quality basket. Investors can stagger their investments into the Quality space over the next 2-3 years to eventually benefit over the medium to long term.
Economic Times
30-06-2025
- Business
- Economic Times
Focus on Quality: Invest in resilient businesses amid uncertainty
Quality investing is gaining traction amid market challenges. The Nifty 200 Quality 30 index offers exposure to financially strong companies. It uses metrics like Returns on Equity and Earnings Growth. Factor-based strategies can improve portfolio returns. Tactical allocation and long-term capital appreciation are key benefits. A rules-based framework and lower costs make it attractive. Tired of too many ads? Remove Ads 1) Exposure to differentiated drivers of returns Tired of too many ads? Remove Ads 2) Tactical allocation: Potential risks and Underperformance over last few years indicate probable outperformance going forward 3) Strategic allocation: Long-term capital appreciation with lower risk 4) Rules-based investment framework 5) Lower costs Conclusion (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) With the backdrop of several global and domestic geopolitical and macroeconomic headwinds facing Indian equity markets , discussions about Quality investing are re-emerging in investment circles. Quality investing constitutes investing in financially strong and steady businesses with are relatively stable during periods of market Nifty 200 Quality 30 Index includes top 30 companies from the universe of Nifty 200 Index on the basis of 'quality' score. Metrics used to define the Quality score include Returns on Equity, Debt/Equity ratio and Earnings are 5 reasons why one should consider a Nifty 200 Quality 30 index fund to build their Quality exposure:Compared to the Nifty 200, which is a traditional index based on market capitalization of underlying businesses, a factor-based index is built using a differentiated driver of returns – such as Momentum, Low volatility, Value or Quality. Factor-based strategies like a Nifty 200 Quality 30 index fund can complement plain-vanilla indices in an investment portfolio by improving risk-adjusted equity investors have experienced an almost one-way equity rally post the pandemic in 2020. While this has been rewarding, investors now risk becoming complacent. Market fortunes are fundamentally tied to the underlying economic situation, which, as we know, is cyclical i.e. economic upturns are followed by downturns, which are again followed by upturns. Momentum and Value themes have done well during the current upcycle and earnings spurt that we witnessed post-COVID-19. However, now we are in the final stages of that upcycle with signs of normalization becoming evident. As per ICRA , India's GDP growth for financial year 2024-2025 is expected to be 6.3% compared to 9.2% of the previous fiscal. Global factors such as elevated policy uncertainty and heightened trade and geopolitical tensions are also weighing on stock markets. In such an economic environment, the Quality theme that prioritizes investments in resilient, sound businesses with strong balance sheets, are likely to do better than momentum-driven stocks. Given that this style has relatively underperformed over the last few years, high-quality investments are available at reasonable valuations, increasing the probability of outperformance going of April 2025, the Nifty 200 Quality 30 TRI has generated higher average Rolling Returns over 1-, 5- and 10-years horizons compared to Nifty 200 TRI and Nifty 50 TRI. On a CAGR basis too, the Quality style has outperformed the mainstream indices since April 2025. The Quality theme also offers better downside protection during periods of market stress such as the taper tantrum of 2013, when the Nifty 200 Quality 30 TRI limited downside to 4% compared to Nifty 200 TRI's 14% and Nifty 50 TRI's 13%. Similarly, during the NPA crisis of 2015-16, the Quality-focused index outperformed its plain-vanilla peers by falling only 14% compared to their 20% and 21%.A rules-based strategy like the Nifty 200 Quality 30 index can enable systematic screening of businesses based on fundamentals. This helps avoid emotional decision-making, human biases or errors in times of market euphoria or panic selling.A Nifty 200 Quality 30 index fund uses systematic, rules-based models to identify and invest in stocks. Since there is no need for research or active management, expense ratios of these funds are typically as a factor should ideally be part of an investor's core, long-term oriented portfolio. Given the recent underperformance and as a measure to build resilience in the face of ongoing uncertainty on the global as well as domestic fronts, now is a suitable time to accumulate a Quality basket. Investors can stagger their investments into the Quality space over the next 2-3 years to eventually benefit over the medium to long term.
Time of India
26-06-2025
- Business
- Time of India
NFO Alert: SBI Mutual Fund launches Nifty200 Momentum 30 Index Fund
SBI Mutual Fund has announced the launch of SBI Nifty200 Momentum 30 Index Fund , an open-ended scheme replicating/ tracking Nifty200 Momentum 30 Index. The new fund offer or NFO of the scheme is open for subscription and will close on July 3. Also Read | Consistent performers: 10 equity mutual funds deliver over 30% CAGR in 3 and 5-year periods Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Semua yang Perlu Anda Ketahui Tentang Limfoma Limfoma Pelajari Undo The investment objective of the scheme is to provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. "The Nifty200 Momentum 30 Index is constructed to reflect the performance of the top 30 high-momentum stocks within the Nifty200 universe, selected through a methodology that considers both recent price performance and risk-adjusted returns. The SBI Nifty200 Momentum 30 Index Fund provides investors with an opportunity to access a momentum-driven strategy, which can serve to enhance return potential in a diversified portfolio," said Nand Kishore, MD & CEO, SBI Funds Management. Live Events "Momentum investing is a well-established strategy that seeks to capitalize on the persistence of stock performance trends. The Nifty200 Momentum 30 Index is designed to systematically identify and track the top 30 high-momentum stocks within the Nifty200 universe. Through the SBI Nifty200 Momentum 30 Index Fund , investors gain access to a momentum-driven investment style that can complement traditional strategies and potentially enhance portfolio returns by participating in prevailing market trends," said D P Singh, Deputy MD & Joint CEO, SBI Funds Management. The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the Nifty200 Momentum 30 Index and up to 5% in Government securities (like G-Secs, SDLs, and treasury bills), including triparty repo and units of liquid mutual fund. Also Read | Best corporate bond mutual funds to invest in June 2025 The minimum application amount during the NFO is of Rs 5,000 and in multiples of Re 1 thereafter with additional purchases of Rs. 1,000 and in multiples of Re 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP (Systematic Investment Plan). The fund manager for the SBI Nifty200 Momentum 30 Index Fund is Viral Chhadva. The fund gives an opportunity to invest in 30 'high momentum' stocks, which includes both large & mid-cap stocks, from its parent NIFTY200 index, selected based on their 'normalised momentum' scores, according to the release by the fund house.
