Axis Fund Mutual has announced the debut of a new fund, the ‘Axis Quant Fund,’ which takes a quantitative approach to investing that is fundamentally driven. This technique employs a model that seeks to discover the best bottom-up stock possibilities while taking into consideration both risks and potential returns.
The goal of the approach is to build a portfolio of high-quality equities with outstanding growth prospects that are also affordable. While constructing a portfolio, this method to stock selection is supplemented with rigorous risk management.
The world of investing is experiencing a sea change in data availability as a result of the focus on corporate governance, which has resulted in a remarkable improvement in company disclosures. This shifting paradigm creates a significant opportunity for asset managers and has the potential to improve the fund management process.
According to the organisation, successful adoption of this new wave may be achieved using quantitative approaches, which are simply models that are taught to analyse data and utilise it to generate investment ideas. Quant funds are specialty funds that employ these strategies.
What are Quant Funds?
Quantitative strategy, a well-established methodology in the west, is a different and complementary alternative to traditional market investment. Portfolio management is carried out using mathematical models and a methodical methodology. This method’s strength rests in its capacity to assess a wide range of equities and combine several data sources to determine the best investing possibilities. The manager can also use the model to build a portfolio that balances risk and return objectives.
The Axis Quant fund, according to the business, is appropriate for investors searching for new ways to diversify their existing portfolio of funds while also wanting to allocate for the long term. The fund is a one-of-a-kind offering, combining the strength of fundamentals with risk management discipline. Its goal is to build a diversified portfolio that can function throughout the market cycle.
Highlights of the fund
- It’s a quantitatively-based open-ended equity system.
- To achieve long-term capital growth by investing primarily in equities and equity-related products that have been carefully selected using a quantitative method.
- The procedure will identify the finest ideas using a fundamental factor-based method, on which it will build and manage the portfolio.
- minimum application (NFO) of Rs 5,000 is required, with subsequent applications in multiples of Rs 1/-.
- Benchmark: S&P BSE 200 TRI
- Dates for the NFO: June 11, 2021 through June 25, 2021
Salient features of the fund
- An equity fund that invests in stocks and stock-related securities based on a quantitative method.
- The portfolio is reviewed and rebalanced on a regular basis, incorporating the best of basic styles: Quality, Growth, and Valuation.
- Stocks are appraised using many basic metrics, and weights are allocated based on risk and other factors.