Single vs Multi-Factor Funds: Which Strategy is Right for You?
When it comes to investing, it’s not just about picking good stocks—it’s also about choosing the right strategy. One smart way to invest is through factor-based investing. This method selects stocks based on certain traits (called factors) that have been proven to give better results over time.
Some common factors are:
✔️ Value – Stocks that are available at a bargain price
✔️ Momentum – Stocks that have been doing well recently
✔️ Quality – Companies with strong financial health
✔️ Low Volatility – Stocks that stay stable in ups and downs
You can either invest in a Single-Factor Fund or a Multi-Factor Fund:
🔹 Single-Factor Funds focus on just one of the above traits. For example, a value fund invests only in undervalued stocks. These are good if you’re confident about a specific trend in the market.
🔹 Multi-Factor Funds combine two or more factors. For example, a fund might mix quality and low volatility to reduce risk and aim for steady growth. These are more balanced and suit most investors in changing market conditions.
What We Recommend at Hum Fauji Initiatives:
We usually prefer multi-factor funds for their balanced approach and ability to perform across different market phases. But in certain situations, single-factor funds can also be useful, especially for satellite portfolios.
(Contributed by Riya Bhandari, Relationship Manager, Team Arjun, Hum Fauji Initiatives)
No Retirement Plan? You Might Be In for a Shock Later
In the Armed Forces, life rarely slows down—transfers, commands, responsibilities, and the needs of your family always come first. But amidst this constant motion, one mission often gets delayed: your own retirement planning.
For Short Service Commissioned officers and those opting for PMR quite early, the absence of a lifelong pension makes retirement planning not just important—but essential. Even for those who will receive a pension, rising living costs, healthcare needs, and lifestyle expectations mean that pension alone may not be enough. In addition, your children in the corporate will not likely get any pension from their employer.
Retirement should be a time of freedom—not financial worry. It’s your chance to live with dignity, pursue passions, travel, and support your family—without compromises.
Why You Should Start Planning Now
• Reliable Income Post-Retirement: Build a steady income stream beyond pension
• Lifestyle Protection: Maintain the standard of living you’ve worked hard for
• Health Preparedness: Supplement ECHS with personal health cover and emergency funds
• Inflation Defence: Grow your wealth with investments that beat rising costs
• Peace of Mind: A clear, disciplined plan brings security in your second innings
“You’ve always planned your missions. Now, it’s time to plan your future”.
(Contributed by Anjali, Relationship Manager, Team Arjun, Hum Fauji Initiatives)
Smart Investment Strategies for Women Returning to Work After a Career Break
Stepping back into the workforce after a career break? That’s not just a new chapter in your career—it’s the perfect time to take charge of your finances too! Here’s how to start strong:
1. Reassess Your Finances
Pause and check—what do you earn, spend, owe, and own? A clear picture helps you make confident decisions moving forward.
2. Define Your Goals
What are you aiming for—a dream home, a child’s education, or early retirement? Turn your dreams into financial goals with timelines.
3. Build Consistency, Not Complexity
You don’t need to start big. Even small, regular savings can grow over time. The key is to stay disciplined and consistent.
4. Stay Curious, Stay Confident
Learn the basics of money management. When you understand where your money goes and how it grows, you take back control.
5. Secure Your Future
Think beyond today. Have a plan in place for emergencies and life’s uncertainties—it’s a powerful step toward true independence.
Your comeback isn’t just professional—it’s personal.
This is your chance to rewrite your financial journey with purpose, power, and pride.
(Contributed by Aditya Bhola, Financial Planner, Team Sukhoi, Hum Fauji Initiatives)
What did our clients ask us in the last 7 days?
Question –
Under what circumstances should I consider that my mutual fund is underperforming before deciding to take any corrective action?
Our Reply –
Mutual funds in your portfolio are generally selected with a long-term perspective—based on your goals, risk tolerance, life stage, and investment horizon. These decisions are made carefully, not in response to short-term market noise.
Even well-performing funds can face temporary dips due to market cycles, sector shifts, or investment style. That doesn’t mean they’re bad funds now. In fact, many funds rebound strongly with time, rewarding investors who stay the course.
But if you’re worried about performance, review your fund using these clear checkpoints:
✅ Consistent underperformance Vs peers for over 1–2 years, indicating potential inefficiencies in strategy or stock selection
✅ Returns not justifying the risk taken — especially if the fund is more volatile or sector-concentrated without delivering proportionate gains
✅ Change in fund manager or investment style that hasn’t resulted in improved performance
✅ No recovery despite a broader market bounce, reflecting weak adaptability
✅ Frequent portfolio churn without visible improvement—suggesting lack of conviction or a clear direction
That said, not all underperformance is structural. Short-term lags are common and don’t always warrant immediate action.
Avoid frequent switching as it can lead to tax liabilities, exit loads, and loss of compounding benefits.
Stay focused on long-term goals
Managing investments without expert support can lead to avoidable mistakes. If in doubt, consult a qualified financial advisor who can objectively analyse whether the underperformance is part of a normal cycle—or a sign to rebalance. In investing, timely action matters—but so does thoughtful patience.
(Contributed by Team Arjun, Hum Fauji Initiatives)
