Aditya Birla Sun Life Launches Aditya Birla Sun Life Quant Fund – Details Inside
Aditya Birla Sun Life launched the Aditya Birla Sun Life Quant Fund, an open-ended thematic equity fund utilizing quantitative models for stock selection, open for investment from June 10th to 24th, 2024, with a minimum investment of Rs 500.
Aditya Birla Sun Life has introduced a new mutual fund scheme, the Aditya Birla Sun Life Quant Fund, aimed at long-term capital growth through equity investments. This open-ended thematic equity fund utilizes quantitative models for stock selection.
Investment Details
The fund opened for investment on June 10, 2024, and will accept applications until June 24, 2024. The minimum investment required is Rs 500, making it accessible for small investors. The fund primarily aims to achieve long-term capital appreciation.
Quant Fund: What Is It?
Quantitative funds, or quant funds, use mathematical models and statistical techniques to make investment decisions. These models replace human judgment with data-driven signals, aiming to enhance transparency and minimize emotional biases in investing.
Aditya Birla Sun Life Quant Fund Strategy
The Aditya Birla Sun Life Quant Fund combines automated investing with oversight from fund managers. It follows a quantitative model for stock selection based on the NIFTY 200 Index, which includes large and Mid-Cap stocks. The fund manager defines the investment universe and designs the quantitative model, with automated monitoring of chosen stocks.
Risk Management and Portfolio Allocation
The fund's allocation is focused on equity, with 80% to 100% invested in the quant model theme. The rest is allocated to other equity and debt instruments, ensuring a balanced approach to risk management.
Performance Comparison
|
Scheme Name
|
AUM (Crore)
|
Expense Ratio (%)
|
1 Year Returns (%)
|
|
quant Quantamental Fund
|
2173.51
|
2
|
64.95
|
|
360 One Quant Fund
|
175.14
|
1.83
|
58.44
|
|
Nippon India Quant Fund
|
63.00
|
0.98
|
42.72
|
|
ICICI Pru Quant Fund
|
76.79
|
1.23
|
35.21
|
|
Axis Quant Fund
|
1062.73
|
2.18
|
33.5
|
|
Tata Quant Fund
|
57.66
|
2.38
|
27.21
|
|
DSP Quant Fund
|
1179.22
|
1.26
|
21.54
|
|
Kotak Quant Fund
|
683.49
|
1.26
|
-
|
Investor Profile
The fund is suitable for long-term equity investors with an investment horizon of 3-5 years or more. Investors looking to start small can benefit from the low minimum investment requirement.
Fund Manager Expertise
Mr. Harish Krishnan, with nearly 20 years of experience in asset management, manages the scheme. His background includes managing equity funds at Kotak Mutual Fund and offshore funds internationally.
Conclusion
The Aditya Birla Sun Life Quant Fund offers a sophisticated investment strategy, blending automated, data-driven models with expert oversight. It provides an opportunity for investors seeking long-term growth in a diversified equity portfolio. The fund's low entry barrier and potential for substantial returns make it suitable for investors willing to accept higher risks for greater rewards.
Disclaimer: The article is for informational purposes only and not investment advice.
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