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What are Factors?

"We dont have to be smarter than the rest. We have to be more disciplined than the rest."
- Warren Buffett

"You have to learn the rules of the game, and then you have to play better than anyone else."
- Albert Einstein

Defining 'Factors' in an Investment Setting

We all praise Sachin’s text-book style square cuts and master strokes, but is that enough to win matches for the Indian cricket team? Apart from Sachin’s quality batting, we also ne

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History and Evolution of Factor Investing: From Academia to Practice

Although buzzwords such as “investment factors,” “factor funds,” “smart/strategic beta” have recently gained popularity, factor investing was pioneered back i

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Classifying a Parameter as an Investment Factor

Almost any parameter associated with the fundamental or market data of a company can be used as a factor. With potentially hundreds of factors available it is necessary to choose the most effect

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Factor Categories: Macroeconomic vs Style

Most investors classify investment factors into two broad categories, namely macroeconomic and style factors. As its name suggests, macroeconomic factors illustrate broad macroeconomic and finan

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Understanding Rule-Based Investing, Active Investing, and Traditional Discretionary Investing in Mutual Funds

In the diverse world of mutual funds, investment strategies often fall into three broad categories: Rule-Based Investing, Active Investing and Traditional Discretionary Investing. While both aim

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