{"id":31399,"date":"2025-01-29T11:50:17","date_gmt":"2025-01-29T06:20:17","guid":{"rendered":"https:\/\/www.fundsindia.com\/blog\/?p=31399"},"modified":"2025-01-30T14:56:44","modified_gmt":"2025-01-30T09:26:44","slug":"5-finger-framework-your-all-seasons-equity-portfolio-strategy-5-year-update","status":"publish","type":"post","link":"https:\/\/www.fundsindia.com\/blog\/mf-research\/5-finger-framework-your-all-seasons-equity-portfolio-strategy-5-year-update\/31399","title":{"rendered":"5 Finger Framework Your All Seasons Equity Portfolio Strategy – 5 Year Update"},"content":{"rendered":"\n
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Here is a recap of how the strategy was designed and the thought process behind it. <\/p>\n\n\n\n

<\/p>\n\n\n\n

What is the challenge in building an equity portfolio using mutual funds?<\/span><\/strong><\/h2>\n\n\n\n

Building an equity mutual fund portfolio<\/strong> can feel confusing <\/strong>and overwhelming. <\/strong><\/p>\n\n\n\n

  1. Too Many Choices!<\/strong>
    With over 45 fund houses offering a vast array of equity fund schemes across multiple categories, the choices can feel endless. And the nagging question remains: What if I choose the wrong one?<\/em>
    <\/li>
  2. Fund Ratings don\u2019t work!<\/strong>
    <\/strong>Have you ever wondered why rating agencies never show the performance track record of their 5-star-rated funds?
    <\/strong><\/li>
  3. Past Performance does not help in picking future winners!<\/strong>
    Evidence suggests that portfolios made up solely of recent winners tend to underperform in the future.<\/li><\/ol>\n\n\n\n
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    How do we solve this?<\/span><\/strong><\/h2>\n\n\n\n

    Identify proven investment styles that can outperform the passive index (Nifty 50 or Nifty 500) over the long run!<\/strong><\/h3>\n\n\n\n

    Investment research worldwide has repeatedly shown that stocks with specific, well-defined characteristics often outperform popular market-cap-based benchmarks like the Nifty 50 or Nifty 500 over the long term. These characteristics, known as factors, have demonstrated enduring success, consistently delivering performance over time and proving effective across diverse equity markets. <\/p>\n\n\n\n

    To date, seven key factors have been identified and validated globally.<\/strong><\/p>\n\n\n\n

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    Based on the historical performance and portfolios of these different styles, we found that<\/p>\n\n\n\n