Very nice article, Hansi! Kudos for the fluid language and comprehensive coverage...

I use a combination for my clients. Risk profile based asset allocation, and within the asset class using factor-investing to optimize security selection and more importantly to avoid behavioral follies...

As a risk measure, clients feel more comfortable with Max Drawdown or Downside volatility, which I believe are more suitable to retail investore.

Nehal Joshipura, PhD