Factor base investing has been around for quite a long time, but it's been growing in popularity in recent years. The most commonly known factors are market risk, small cap stocks, value stocks and companies with high profitability and low investment. Investors want to be compensated for taking on more risk with higher returns. But not all types of risk mean you get a higher return in investing. Michael gyad brought this point up in one of our recent episodes, which was episode three 63. Go check that out if you haven't yet.

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