NEW DELHI: IIFL Asset Management has launched a quantitative variable fund that will actively invest in equities and equity related securities based on the quantitative theme. The new fund offering (NFO) opens on November 8 and ends on November 22.
The fund will seek to invest in quality stocks that exhibit secular growth or defensive characteristics with a disciplined approach to portfolio construction.
A quantitative fund offers to select stocks based on predetermined rules and eliminate bias from fund managers in the stock selection process.
The IIFL Quant Fund will be subject to periodic rebalancing and review. The fund will be managed by Parijat Garg, Fund Manager, IIFL AMC.
“Based on a quantitative model, the IIFR Quant Fund’s strategies are fully systematic and rules-based and would have additional filters to select dynamic, quality stocks. The fund universe will include the top 200 stocks in terms of market capitalization and liquidity, ”Garg said.
In accordance with the fund house, quality stocks will be selected on the basis of quantitative portfolio construction methods and techniques. IIFL Quant Fund aims to provide investors with the opportunity to gain exposure to multiple sectors.
As this fund is based on quantitative rules, it is mainly guided by the investment process rather than discretion, thus avoiding market capitalization and behavior biases. In addition, the methodology and construction of the fund’s portfolio are tested a posteriori over several periods and validated. The benchmark for this fund will be the S&P BSE 200 Total Return Index (TRI).
Commenting on the launch, Manoj Shenoy, CEO of IIFL AMC, said: “The passive + approach followed by the fund is based on multiple quantitative factors which have been post tested and historically proven to improve. security selection capabilities. The model has a fundamental basis with clearly defined parameters and relies on a defined process while applying the same to a set of comparable stocks. “
The minimum investment required during the NFO period is ??1000 and in multiples of ??100, thereafter. There will be a 1% exit charge if the units are redeemed within 12 months of the grant.
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