IIFL Mutual Fund has launched IIFL Quant Fund.
Quant funds are those funds that select stocks in their portfolio 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, Manoj Shenoy, CEO, IIFL MF said, “The passive+ approach that the fund follows is based on multiple quantitative factors that have been back-tested and historically proven to improve stock selection capabilities. The model has a fundamental basis with parameters clearly laid out and relies on a defined process while applying the same across a set of comparable stocks.”
Parijat Garg, fund manager of the scheme said, “The fund universe will include the top 200 stocks by market cap and liquidity.”
