Factor investing is back in favour. But for how long?

Factor investing is regaining popularity in India with multiple new fund launches from Franklin Templeton, Motilal Oswal, Groww, and Kotak between late 2025 and mid-2026. In 2026, the value factor has led with the Nifty500 Value 50 TRI gaining 7.3 percent year-to-date, outperforming the Nifty 500 TRI by about 12.1 percentage points, while quality and low volatility factors have lagged due to higher exposure to underperforming IT and FMCG sectors. Experts believe factor investing will remain relevant through the rest of 2026, with momentum and alpha factors potentially regaining leadership if earnings growth supports more directional markets.