Smart Beta Funds: Are They Right for Your Portfolio? Expert Weighs In

• Smart beta funds combine passive investing with rule-based strategies, similar to index funds but factor-driven.
• Rushabh Desai explains these funds use algorithms based on factors like momentum, quality, value, or low volatility.
• Suitable for all equity investors, but time horizon and risk appetite are crucial; aggressive investors need 7-10 years.
• Desai suggests momentum strategy offers current opportunity, despite recent underperformance, with strong long-term returns.
• Caution: Smart beta funds carry risks, including sharp drawdowns during corrections as they remain fully invested; allocate 15-40%.