By: Tien Yu-pin and Frances Huang
Taipei, Oct. 10 (CNA) An investment strategy to track factor-based indexes could become a trend in the local equity market, according to analysts who attended a recent seminar held by Taiwan Index Plus Corp.
In the seminar, analysts urged the local equity market to launch factor-based investing indexes that will provide relevant factors and deliver “risk adjusted” results.
Such an investment strategy, which weighs select factors such as economic strength, monetary policies and even geopolitical situations, could lead to a better return with fewer risks than the broader market, according to analysts.
Taiwan Index Plus, a wholly owned subsidiary of the Taiwan Stock Exchange, cited a survey conducted at the seminar as saying that 51 percent of the meeting attendees expressed hope that the local main board and the over-the-counter market will compile indexes that are comprised of a myriad of factors, in order to provide more investment options for investors. [FULL STORY]