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From Gut to Algorithms: How factor farming is reshaping Indian portfolios in 2025


Published on 2025-01-19 03:41:06 - MSN
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  • Factor farming is transforming investment strategies in India by leveraging data, algorithms, and specific market factors like momentum, value, and volatility. By 2025, the rise of smart beta ETFs and factor-based strategies like CAN SLIM signals a shift toward data-driven approaches.

The article from MSN discusses the transformation in Indian investment strategies through the adoption of "factor farming" by 2025. Factor farming involves using algorithms and data analytics to identify and exploit market inefficiencies, moving away from traditional gut-based investment decisions. This shift is driven by the need for more systematic, data-driven approaches in portfolio management, aiming to enhance returns while managing risks more effectively. The article highlights how Indian investors and fund managers are increasingly relying on factors like value, momentum, quality, and low volatility to construct portfolios. This method not only promises better performance but also democratizes investment strategies, making sophisticated tools accessible to a broader range of investors. The narrative also touches on the integration of AI and machine learning, which further refines these strategies by continuously learning from market patterns and investor behavior, thus reshaping the investment landscape in India.

Read the Full MSN Article at:
[ https://www.msn.com/en-in/money/economy/from-gut-to-algorithms-how-factor-farming-is-reshaping-indian-portfolios-in-2025/ar-AA1xsezf ]
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