Stock portfolio: Edelweiss' Radhika Gupta lists four factors that play a key role in your returns


Radhika Gupta, MD and CEO of Edelweiss, recently shared valuable insights from her factor investing team on X (formerly Twitter), backed by detailed charts and data. In her first tweet, Gupta highlighted the performance of various investment factors over the last decade, stating that momentum has been the best performing factor, which has significantly outperformed other factors. The accompanying chart shows momentum’s impressive growth of 16.0x, far exceeding other factors such as quality, low volatility and value.

In a follow-up tweet, Gupta discussed the four key factors that drive stock returns: value, quality, growth and momentum. He put together a quiz for his followers, asking which factor performed the best over 10 years, which factor was the most consistent and which was the least consistent. The charts detailed the characteristics of each factor, with examples of stocks representing quality, growth, value and momentum.

Gupta's tweets drew responses from financial professionals, including Saloni Sanghvi, CFA, Vikas Khanna and Hitesh Raheja, CFA. Sanghvi identified momentum as the best performer over 10 years, quality the most consistent and value the least consistent. Khanna, however, named growth the best performer, followed by value and momentum. Raheja agreed with Sanghvi, confirming momentum's top performance and quality's consistency.

Gupta is known for her social media presence and constantly shares information through these platforms. Sharing an example earlier this month, Gupta said that she recently saw the portfolio of an investor who had He announced a monthly SIP worth Rs 27,000 across 31 funds, of which 15 were limited sector funds, and called it “a danger in today's times”.

He added, “One danger at this point is to fill your portfolio with narrow ideas, which are ideally satellite allocations. Remember, 80% of the portfolio should be “dal-chawal” funds!”

When a follower asked what such a fund would include, he said, “I mean things that are not narrowly themed. Hybrid funds, diversified equity funds, active or passive, it doesn't matter. The point is broad-based, all-weather things.”



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