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Aditya Birla Sun Life MF has launched the Aditya Birla Sun Life Quant Fund.
Quant funds use a mathematical formula to find opportunities across a broad range of stocks. Basically, these funds follow a pre-defined and transparent policy to select stocks.
In the press release, A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life MF, said, “In today's complex markets, we believe quantitative investment strategies can offer valuable advantages such as improved transparency, emotion-free decision making and robust risk management. The quant fund aims to leverage the combined strengths of human expertise and quantitative models to provide investors with a differentiated investment solution. The fund will deliver these benefits to investors through a rigorous, research-driven approach for an innovative investment process powered by tech and guided by wisdom.”
Harish Krishnan, Co-CIO and Head Equity, Aditya Birla Sun Life MF said, “This offering from our fund house will start by narrowing the universe of stocks such that they fall in the large and midcap category. Next, we will evaluate the quality of stocks based on their fundamental track record. Post this, we will look at the relative returns generated in the last 6 months of this universe and then look at the composite score assigned by various sell-side analysts. Ultimately, we will arrive at a portfolio comprising of 40-50 stocks by first applying equal weight to all and then skew the weight of individual stocks basis low volatility.”
