Question

Why do investors and academics see equity factor investing as an effective method at a high...

Why do investors and academics see equity factor investing as an effective method at a high level? Max 100 words

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Answer #1

Equity factor based nvesting is an active investing method which is always accounting for rebalancing of the portfolio according to the market needs.

Equity factor investing means that it is a method which is designed in order to beat the overall market rate of return by minimising the risk and maximizing the return through active rebalancing of the portfolio according to the need of the the present market and it always enhances the market performance by reallocating the Asset which will generate the highest possible Alpha.

it is considered an effective method at high level because it is used by various fund managers who are active fund managers and who aims to beat the market rate of return through static tilts, active fund substitution and portfolio completion which are part of equity factor.

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