Aditya Birla Sun Life Mutual Fund has filed a draft document with Sebi for a quant fund. Aditya Birla Sun Life Quant Fund will be an open-ended equity scheme following quant-based investment theme.
The investment objective of the scheme will be to generate long term capital appreciation by investing in equity and equity related securities based on quant model theme.
The scheme will be benchmarked against Nifty 200 TRI. The scheme will be managed by Harish Krishnan and Dhaval Joshi (overseas investments)
The scheme will offer regular and direct plans with growth and IDCW options. The minimum application amount will be Rs 500 and in multiples of Re 1 thereafter.
The minimum application amount for monthly and weekly SIP will be Rs 500 each and above with minimum six instalments.
The scheme will allocate 80-100% in equity and equity related instruments based on quant model theme, 0-20% in equity and equity related instruments other than quant model theme, 0-20% in debt and money market instruments, and 0-10% in units issued by REITs & InvITs.
The Scheme will follow an active investment strategy. The investment objective of the fund will be to generate long-term capital appreciation by investing in equity and equity related instruments selected based on an in-house proprietary quantitative model. The investment process will be based on a factor-based approach with the aim of generating superior risk adjusted returns compared to the benchmark.
The investment universe would be screened using quantitative measures like data availability, liquidity etc. and then subsequently factors described below would be used to evaluate the stocks’ attractiveness from a risk and return perspective.
The principal invested in this scheme will be at “very high” risk according to the riskometer of the scheme.