Equity markets offer strong long-term growth opportunities but also come with short-term volatility. Many investors prefer companies that can endure volatility and deliver more sustained, long-term performance.

This is where factor-based investing, specifically the Quality factor, can help.

Unlike traditional market-cap-based investing, factor investing goes a step further by selecting stocks based on specific characteristics—called factors—that have historically driven returns. It follows a rules-based, low-cost approach while aiming to outperform the market.

The Quality factor specifically targets businesses with consistent earnings, high return on equity, and low financial leverage. These companies tend to be resilient during downturns and offer better risk-adjusted returns over time.

Aditya Birla Sun Life BSE 500 Quality 50 Index Fund is a factor-based index fund that replicates the BSE 500 Quality 50 Total Return Index, a curated portfolio of the top 50 quality-scored companies from the BSE 500 universe.

The index portfolio is rebalanced quarterly to maintain alignment with the index and ensure disciplined stock selection.

With disciplined stock selection, broad sector and market cap diversification, and a low-cost, rule-based framework that selects companies based on defined financial metrics, this fund is designed to help investors build sustained long-term wealth