Axis Mutual Fund has announced the launch of their new fund offer – ‘Axis Quant Fund’, following a fundamentally driven quantitative method to investing. This method utilizes a model that aims to determine the strongest bottom-up stock possibilities to invest in when accounting for each dangers and return prospects.
The model aims to pick a portfolio of excellent stocks with superior development prospects but at affordable costs. This method for picking stocks is augmented by disciplined threat management when carrying out portfolio building.
With the focus on corporate governance and resulting in a dramatic improvement in corporate disclosures the world of investing is witnessing a sea transform in the availability of information. This altering paradigm represents a big chance for asset managers and promises to transform the fund management approach for the much better.
The corporation says profitable adoption of this new wave can be performed by way of what is identified as quantitative methods – basically models that are educated to approach this information and use it to come up with investment tips. The specialized funds that use these approaches are known as Quant funds.
What are Quant Funds?
Quantitative method, an method that is properly entrenched in the west, is an alternate and complementary method to the classic way of investing in markets. It utilizes mathematical models and a systematic method to carry out portfolio management. The strength of this approach lies in its capability to analyze a big breadth of stocks and in bringing collectively diverse information points to determine the strongest investment possibilities. The model also makes it possible for the manager to construct a portfolio that balances threat-return objectives.
The corporation claims that the Axis Quant fund is appropriate for investors hunting at new avenues of investing to diversify their current portfolio of funds and aiming to allocate for the extended term. The fund provides a special proposition, combining the energy of fundamentals with disciplined threat management. It aims to make a diversified portfolio that has the prospective to work across the industry cycle.
Highlights of the fund
· Its an open-ended equity scheme following a quantitative model
· To produce extended-term capital appreciation by investing mostly in equity and equity-associated instruments chosen based on a systematic quantitative approach.
· The approach will use a basic issue-based method to pick the greatest tips based on which it will construct and monitor the portfolio.
· Minimum application (NFO) of Rs 5,000 and in multiples of Re 1/- thereafter.
· Benchmark: S&P BSE 200 TRI
· NFO date: June 11, 2021, to June 25, 2021
Salient features of the fund
· An equity scheme that invests in equity and equity-associated instruments chosen based on a quantitative method.
· All seasons portfolio capturing the greatest of basic types: Quality, Growth and Valuation.
· Stocks are evaluated employing a number of basic parameters and weights are assigned employing threat and other considerations.
· The portfolio is reviewed and rebalanced periodically.
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Chandresh Nigam, MD and CEO, Axis AMC says, “The landscape of active equity investing has evolved and markets are becoming more efficient. While introducing new fund offers in the market, the constant aim has been to provide investors with a product basket that suits their needs and helps them diversify one’s portfolio, allowing them to make long term allocations. Axis Quant Fund is our attempt to continue that journey for investors by offering them a product that can use the power of data to create long term wealth.”