Factor investing with value n small cap, under performing in recent times, are they irrelevant in new economy, paradigm shift? Comments on new world order post covid?

Hi Julie,

We think that passive investing in its current form which allows cheap low-cost access to individual retail investors is a huge blessing and has benefited many who have used the method to invest for the long term.

While factor based investing on value, small cap havve underperformed recently, they have outperformed across longer time frames. Much longer term historical data shows that they were able to give you a better return. We will scrutinise performance and recommend our clients any changes if necessary.

About new world order post covid, it is really difficult to make a call which sector or which country will do better in the future. Humans are terrible at making forecast, and we believe that it is better to invest in a diversified manner.