Axis Mutual Fund has launched Axis Quant Fund, an open ended equity fund.
Quant funds select stocks on the basis of quantitative analysis. In actively managed funds, buy and sell calls are taken by the fund manager. In contrast, a mathematical formula identifies buy and sell calls as set out in the fund’s objective in quant funds. Quant fund managers generally design these mathematical methods.
In a press release, the fund house said, “The model aims to select a portfolio of quality stocks with good growth prospects but at reasonable prices. This approach for selecting stocks is augmented by a disciplined risk management while carrying out portfolio construction. The fund is suitable for investors looking at new avenues of investing to diversify their existing portfolio of funds and aiming to allocate for the long term.”
Chandresh Nigam, MD & CEO, Axis AMC said, “The launch of the Fund is our attempt to offer a product that can use the power of data to create long term wealth.”
