Factor investing straddles the line between active and passive investing, a middle ground. Its starting point is a traditional passive index which is later filtered basis certain factors.
The index has a blend of large, mid and small-cap stocks, spread over an entire gamut of sectors and is representative of a large proportion of the overall market capitalization of Indian companies itself
Investors choosing to take exposure to this index would have the opportunity to combine index and factor investing
While traditional index funds and exchange-traded funds (ETFs) often track broad market benchmarks, investors may also consider incorporating sectoral or thematic funds into their portfolios