Rajiv Shastri, CEO, NJ Asset Management, said, “Factor-based funds are making their presence felt in the Indian investment world, adding clarity and freshness to the chaotic landscape of discretionary investing.” “We’re offering an alternative.”
In an interview with mint genieMr. Shastri will share his views on factor investing, give tips for young investors who are starting their investment journey, and also talk about the outlook for financial markets this year.
Edited excerpt:
What is your outlook for financial markets in 2024-25?
The market is expected to be influenced by key events such as the Lok Sabha elections and the first budget after the elections. Analysts say pre-election volatility is likely to continue, with the possibility of a rate cut boosting market sentiment in the months ahead.
Capital inflows from within and outside the country are likely to remain strong, with expectations that the global drop in interest rates will encourage a return to Indian stocks.
In recent years, interest in quantitative funds and factor-based investing has increased worldwide. Do you think quantitative funds/factor funds are gaining popularity in India?What do you think about the future of quantitative funds/factor funds in the Indian investment environment?
Quantitative and factor-based funds are emerging in the Indian investment world, offering a clear and fresh alternative to the chaotic landscape of discretionary investing. These funds cut through the noise by replacing intuition and personal bias with disciplined rules and data-backed strategies.
Please also read | What is the strategy for building a diversified investment portfolio? MintGenie explains
Could you tell us how the “Factor Investing Olympics” brings the appeal of factor investing to university students?
The “Factor Investing Olympics” presented by NJ AMC provides a playground for curious students to delve into the realm of investing.
NJ AMC provides students with the tools to make more informed financial decisions by exposing them to real-world situations and stimulating critical thinking about the fundamentals of disciplined investing. Masu.
Factor investing has received a lot of attention in the investment industry. Can you explain how factor investing works?
Factor investing takes and builds on the idea that no single strategy is perfect. Instead, identify the fundamental factors that have historically driven high returns, such as quality, value, momentum, and low volatility. Consider these as his four main guides for your portfolio.
quality: Focus on companies with stable high return on equity, generous dividends, and low debt.
value: Looks for companies trading below their intrinsic value.
momentum: Riding the wave of stocks that are already trending upward.
Low volatility: Focus on companies with a stable track record, providing a cushion against market declines.
Please also read | Should you reconsider your portfolio’s fixed income exposure as the market correction continues? Experts say:
What advice would you give to young investors who want to start their investment journey?
If you’re just starting out as an investor, think of investing as planting a tree. Portfolios must be nurtured carefully and patiently, and over time they will become stronger. Minimize the guesswork and anxiety that comes with managing your money by prioritizing high-quality investments that follow a strategy based on clear rules.
This type of approach ensures that decisions are rooted in a disciplined process and not influenced by market rumors or emotional reactions. This rule will guide you through market fluctuations and stay focused on your long-term goals, no matter how difficult the situation.
By sticking to a reliable strategy that doesn’t change from season to season, you can build a resilient portfolio that will grow over the years and help you achieve your desired financial growth.
Unlock a world of benefits! From insightful newsletters to real-time inventory tracking, breaking news and personalized newsfeeds, it’s all here, just a click away. Log in here!
