Debunking 5 common myths of Factor Investing

17 December 2018 | Investing


As the investment world has increasingly embraced factor-based strategies, there are still myths and misconceptions around them. Different investors have different interpretations of how factors are identified. They may also have a different understanding of how factors have performed historically or on how to approach multifactor strategies.

Learn more about the five common myths on factor investing and how they are demystified.

Myth 1: All documented factors are good factors

Myth 2: Factor investing can be timed

Myth 3: Factors will always outperform

Myth 4: A top-down approach is the only strategy for multifactor investing

Myth 5: Using multiple factors dilutes potential performance

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