Indian mutual fund investors now have two new options with the launch of the Kotak Nifty Alpha Low-Volatility 30 Index Fund and the Groww Nifty Smallcap 250 Momentum Quality 100 ETF, available for subscription from May 29 to June 12, 2026. The Kotak fund aims to balance return potential with stability by investing in 30 stocks that exhibit alpha and low volatility. Conversely, the Groww ETF targets higher growth by selecting 100 small-cap stocks based on momentum and quality characteristics. Factor investing, which focuses on specific stock characteristics rather than market capitalization, is gaining traction in India. However, investors should be cautious as no single factor consistently outperforms across all market conditions. Market reversals can hinder momentum strategies, while low-volatility strategies may lag in strong bull markets. Therefore, these funds should be considered as long-term investments rather than short-term bets, with choices guided by individual risk tolerance.