Mumbai, June 23 -- A wave of new fund launches suggests factor investing is back in vogue.

The trend began with Franklin Templeton's Franklin India Multi Factor Fund in November 2025, followed by Motilal Oswal's Multi Factor Passive Fund of Funds in February 2026, Groww's Nifty Smallcap 250 Momentum Quality 100 ETF in May 2026, and Kotak's Nifty Alpha Low Volatility 30 Index Fund in June 2026.

As fund houses double down on the theme, the key question for investors is whether factor investing is a passing fad or a strategy that can deliver superior risk-adjusted returns over the long run.

"Factor investing has a proven long-term track record of outperforming the market," said Sukanya Ghosh, fund manager, SBI Mutual Fund. But she added t...