What is Factor Based Investing?
A factor is any characteristic that can explain the risk and return performance of an asset. Factor investing stands for selection of factor to construct portfolio based on their investment objectives, return target and risk tolerance. For Example: “Inflation Protection Factor”- is a factor model constructed based on protecting investing capital from inflation volatility in the market.
Biniyog ™ ’s Factor group/Types of Factor
| Factor Group | Factors | |
|---|---|---|
| Economic Factor | Inflation protection, Economic growth, | |
| Fundamental Factor | Value, growth, P/E, Low beta Multinational Corp. | |
| Technical Factor | Momentum | |
| Style | Small cap, Mid Cap | |
| Shariah | Halal Stock, 0 Debts. | |
For details check our Factor Investing Brochure.
Factor Index
Factor index seeks to reflect the risk-return characteristics of a factor/investment styles and strategies using transparent and index construction methodologies. Factor index can be used to construct portfolio by institutional or individual investor. For More Information check our Factor Index Methodology.