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SBI Mutual Fund has launched SBI Quant Fund, an open-ended equity scheme following an in-house quant model-based investing approach.
The scheme will rely on 4 factors – growth, momentum, quality and value to pick stocks. Each of these factors will be given weightage based on market conditions.
Sukanya Ghosh and Pradeep Kesavan will manage the scheme.
Nand Kishore, Managing Director & Chief Executive Officer, SBI MF said, “The evolving landscape of factor-based investing presents significant opportunities for diversification and better risk-adjusted returns. Multi-factor investing combines various factors rather than focusing on a single one, helping to smooth out the cyclicality of returns and reduce behavioural biases in factor selection.”
DP Singh, Deputy MD & Joint CEO, SBI Funds Management Limited, said, “The fund is focused on the investors who believe in the India growth story and want to invest in equity with the benefit of periodic reviews through a rule-based investing framework. It aims to deliver optimal risk-adjusted returns and minimise behavioural biases.”
The fund will have 30 to 45 stocks in the portfolio. The fund house aims to raise Rs.4000-5000 crore during the NFO.
