
What is Quant Mutual Fund? Meaning, Features, Types, Advantages

What is QUANT MUTUAL FUND?
Between 1990 and 2001, many mutual fund companies were established in India. These include SBI Mutual Fund, ICICI Prudential and HDFC companies. The investment process of all these companies is different. Many funds came into being during this period. Quant Fund is also a type of mutual fund. Investment decisions in this fund are made using a mathematical model, Artificial Intelligence and Data Analytics.
In 1996, the first Quant Mutual Fund was launched in India by the Asset Management Company Quant Money Manager. This mutual fund has earned a different name for some time now. The returns given by this fund are the main reason for its discussion. In the previous article, we had learned about the largest mutual fund companies in India. In today's article, we are going to get detailed information about an important fund, namely Quant fund.
What is Quant Fund?
Quant Fund is also called a Quantitative fund. Investment decisions in this fund are made using mathematical model, Artificial Intelligence and Data Analytics.
How do Quant funds work:
Does Quant fund mainly work on VLRT Framework?
1. Valuation:
Before selecting any stocks, it is checked whether it is Underpriced or Overpriced using intrinsic value.
2. Liquidity:
After the process of selecting stocks, their Liquidity is checked at the time of buying or selling.
3. Risk Appetite:
The risk capacity is determined by studying the economy, RBI's policy, Microeconomic update.
4. Timing:
Other mutual funds invest for a long period of time. Due to which other funds use a large time frame. And unlike this, Quant fund also invests on a short time frame.
Advantages of investing in Quant fund:
Active Management:
Investment in other mutual funds is long term and Quant Fund is mainly for short term investment. Due to which the risk in this fund is high. Therefore, this fund is fully managed by a fund manager.
Quantitative and behavioral Analysis:
The investment in this is done using Math and AI, due to which there is very little human intervention here.
Scalability:
A large amount of financial data is analyzed using mathematical models, due to which the fund manager increases the investment according to the opportunities in the market.
Quant Funds available for investment in India:
QUANT MUTUAL FUND:
This fund is a major fund that is completely based on Quant investment. This fund is managed by a Quant money manager. There are a total of 12 schemes in this fund, including 9 Equity funds, 2 Hybrid funds and 1 Debt fund.
The various Quant funds available for investment in India are as follows:
-
Nippon India Quant Fund
-
SBI Mutual Fund
-
ICICI Prudential Quant Fund
-
DSP Quant Fund
-
Tata Quant Fund
-
Aditya Birla Sun Life Quant Fund etc.
How to invest in Quant funds?
Step1: Download the Finshak app by clicking on the link below.
https://play.google.com/store/apps/details?id=com.finshakapp.app&hl=en_IN&pli=1
Step2: Sign up by entering your Mail ID and password.
Step3: Search for Quant Fund in the search box.
Step4: Choose the right plan according to your financial capacity and start your investment journey.
Conclusion: Quant funds are High-Risk High Return funds compared to other funds. For some time now, Quant funds have given stable and good returns. Due to strong data analysis, quant funds play an important role for both long term and short term.
Frequently Asked Questions:
1. Are Quant funds safe?
Answer: All mutual funds come under the regulations of SEBI and AMFI. Therefore, Quant funds are a good option for mutual fund investment. But these funds have higher risks compared to other funds.
2. Are Quant mutual funds tax-free?
Answer: Tax exemption is being given on investments up to 1.50 lakhs under Quant ELSS tax saver fund.
3. Is SBI Quant Fund good for investment?
Answer: SBI Quant fund is run by SBI Mutual Fund, an AMC company. This quant fund has performed disappointingly in the past few years. But overall, looking at the performance of AMC, this Quant Fund can perform well in the future.
4. Is Quant midcap fund good for investment?
Answer: Large Cap Quant fund is less risky than other quant funds. And Small cap funds are High Risk High Return funds.
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