Axis Mutual Fund to launch quant fund; details here

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Axis Mutual Fund has announced the launch a new fund offer (NFO) for a quant fund, which is an open-ended equity scheme that will invest primarily in equity and equity-related instruments selected based on a systematic quantitative process. The NFO will open on 11 June and close on 25 June.

According to the asset management company, the fund offers a unique proposition—combining the power of fundamentals with disciplined risk management. The fund aims to create diversified portfolio that has the potential to work across the market cycle.

“The landscape of active equity investing has evolved, and markets are becoming more efficient. While introducing new fund offers in the market, our constant aim has been to provide investors with a product basket that suits their needs and helps them in diversify their portfolio, allowing them to make long term allocations,” said Chandresh Nigam, managing director and chief executive officer, Axis AMC.

The scheme will have S&P BSE 200 TRI as its benchmark and a minimum investment of 5,000 can be made and in multiples of Re 1, thereafter. Here are the details of the scheme.

What are quant funds?

Quantitative strategy is an alternative and a complementary approach to the traditional way of investing in markets. It uses mathematical models and a systematic approach to carry out portfolio management. The model allows the fund manager to construct a portfolio that balances risk-return objectives. The model also aims to select a portfolio of quality stocks with good growth prospects but at reasonable prices.

Features of Axis Quant Fund

The scheme will invest in equity and equity-related instruments selected based on quantitative approach. According to the fund house, the scheme will aim to build all-season portfolio capturing the best of fundamental styles: quality, growth and valuation.

The stocks in the scheme will be evaluated using several fundamental parameters and weights will be assigned using risk and other considerations.

Scheme details

The fund will be managed by Deepak Agrawal and Hitesh Das (foreign securities).

The scheme will invest 80-100% in equity and equity-related instruments of selected companies based on a quantitative model; 0-20% in other equity and equity-related instruments; 0-20% in debt and money market instruments and 0-10% in units issued by real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).

There will be nil exit load if the investment is redeemed or switched out after 12 months from the date of allotment. However, if investment is redeemed or switched-out within 12 months, nil exit load will be levied for 10% of investment, and 1% for the remaining investment.

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