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The strategy of multi-factor involves investing a smart approach that combines various factors rather than concentrating on just one. Because factors are cyclical, they perform differently across various market cycles. Sticking to a single factor can lead to significant underperformance that may last for several years. For instance, quality investing outperformed most factors in India for almost five years. But starting in March 2020, value investing made a comeback and became the best-performing factor for the next few years. By diversifying across multiple factors, we can smooth out returns and reduce behavioral biases in selecting which factors to invest in. This concept is at the core of our fund. We invest across four key factors: momentum, value, quality, and growth. Each of these factors has shown strong performance in different periods. Our fund follows a dynamic multi-factor strategy, meaning the portfolio will tilt towards the currently performing factors. Imagine a cricket coach picking players best suited for the match conditions. Similarly, our fund allocates towards the factors that are currently performing well in the markets. What gives us confidence in this strategy is that we have rigorously tested it in environments akin to real-life market conditions. We have accounted for various portfolio restrictions such as liquidity, turnover, costs, and sector and stock limits.

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.