We all praise Sachin's text-book style square cuts and master strokes… but, is he enough to win most matches for the Indian cricket team??
Apart from Sachin's quality batting, we also need Dhoni's captain-cool low-volatility advice, Sehwag's strong scoring momentum, and Dravid's valuable "wall" for a victory.
Similarly, when buying a new property, we would generally not make a decision solely based on the property’s price, but also look at its location, safety and amenities among other aspects. Likewise, when making investment decisions, professionals tend to evaluate securities based on various parameters viz. prices, volatility, relative value, earnings, interest rates, growth, and liquidity among others. These different elements help explain the risks and returns of financial securities and are referred to as factors in the context of investing.