Brief on FACTOR INVESTING & FINATOZ INTERNATIONAL OFFERING

Factor-based investing in India has gained significant traction in recent years, particularly with the rise of smart beta strategies and the growing sophistication of Indian investors. This approach focuses on targeting specific factors, such as value, momentum, quality, size, and low volatility, to construct portfolios that have the potential to outperform traditional market-cap weighted indices. The introduction of exchange-traded funds (ETFs) and mutual funds based on factor strategies has made this type of investing more accessible to retail investors.

For Indian investors, factor-based investing presents an opportunity to enhance returns by capturing market inefficiencies that might not be reflected in broad indices. Additionally, it allows for greater customization in line with individual risk profiles and investment goals. However, while factor investing offers potential outperformance, it also carries risks. Factors tend to go through cycles, and their performance can be highly volatile over short periods. Investors may also face challenges in selecting the right factor or fund, as different strategies may not always deliver consistent results across market conditions.

Rise of Smart Beta Funds and ETFs:

· Factor-based investing, often referred to as smart beta, has seen a rise in India with the introduction of factor-based mutual funds and ETFs. These funds aim to outperform traditional market-cap weighted indices by selecting stocks based on factors like value, momentum, quality, and low volatility.

· Popular smart beta funds which are tracking the Nifty Alpha low vol 30, Nifty 200 Momentum 30, Nifty 200 Quality 30, have attracted significant interest from retail and institutional investors

· PMS offerings have also incorporated factor-based strategies. These services are becoming popular among high-net-worth individuals (HNIs) who seek a more customized, research-driven approach to investing.

· PMS providers use quantitative models to create portfolios based on factors, targeting superior returns while managing risks. These services give investors access to professional expertise in implementing factor-based strategies on an individualized basis.

FINATOZ International Offering:

The RBI’s $7 Billion cap on international mutual fund investments is nearing its limit. The mutual fund industry is about to breach this threshold, after which further international investments will be halted.

As the window for global exposure is rapidly closing, It’s time we seize the opportunity to act in the right direction for our clients who wish to diversify their investments globally.

Partnering with Interactive Brokers, we are excited to present Global Growth Portfolio - A balance of passive & active ETFs for enhanced returns. It is an actively balanced portfolio constructed with a scientifically thought-out allocation to avenues in S&P 500, Cloud Computing businesses and gold exposure among a few to name.

Interactive Brokers (IBKR) is one of the largest and most trusted online brokerage firms with over 40 years of experience, known for providing access to a wide range of global investment opportunities.

IBKR operates in over 150 markets worldwide, offering seamless access to international equities, fixed income, options, futures, and more.

To know more about the opportunities; Please visit our website www.finatoz.com or reach out to us at +91 9916055544. You can also write to [email protected]

Disclaimer: The above information is solely for educational purposes and the asset classes mentioned are not to be treated as actual investment advice.