New Delhi, Aug. 4 -- Factor investing, once a niche investment strategy, has rapidly gained popularity in India. According to an Edelweiss Mutual Fund study, the combined assets under management (AUM) of smart beta ETFs and index funds have surged from Rs.1,153 crore in June 2021 to Rs.52,739 crore in June 2026, registering a compound annual growth rate (CAGR) of more than 115%.

The sharp rise indicates that investors are increasingly looking beyond traditional market-cap-based investing and choosing portfolios built around specific characteristics, or "factors".

There are five widely followed factor-investing styles: Momentum, Quality, Growth, Low Volatility and Value. But which of these has generated the highest returns, and which com...