Thestudy - A demand-based equity risk factor: Crowdedness, provides insights into how crowded trades can systematically impact stock returns and portfolio performance. Crowdedness is a distinct risk factor which explains the variation in returns beyond the traditional factors (size, value, momentum, etc.). The study addresses to quantify crowdedness in equity markets, if it becomes a systematic risk factor that affects stock returns and how investors could utilize crowdedness to improve portfolio construction & risk management. The crowdedness factor is measurable using public data (institutional holdings, fund disclosures) or trading‐flow data. Crowdedness is a priced risk factor, not just noise.