IIFL Asset Management launches Quant Fund; details here

The fund will invest in quality stocks that show secular growth or defensive characteristics along with a disciplined approach to portfolio construction.

A quant fund proposes to select stocks based on pre-determined rules and eliminate fund manager bias in the stock selection process.

IIFL Quant Fund will undergo periodic rebalancing and review. The fund will be managed by Parijat Garg, Fund Manager, IIFL AMC.

“Based on a quantitative model, IIFL Quant Fund strategy is completely systematic and rules-based and will have additional filters for selection of quality momentum stocks. The fund universe will comprise of top 200 stocks by market cap and liquidity,” said Garg.

According to the fund house, quality stocks will be scrutinized based on quantitative portfolio construction methods and techniques. IIFL Quant Fund aims to provide investors with an opportunity to take exposure across multiple sectors.

Since the fund is based on quantitative rules, it is primarily driven by a discretionary investment process, thereby avoiding market cap and behavioral biases. In addition, the fund’s functioning and portfolio construction are back-tested and validated from time to time. The benchmark of this fund will be S&P BSE 200 Total Return Index (TRI).

Commenting on the launch, Manoj Shenoy, Chief Executive Officer, IIFL AMC, said, “The Passive+ approach that the fund follows is based on a number of quantitative factors that need to be back-tested and historically tested to improve stock selection capabilities. has been amply proven. This model has a basic premise in which the parameters are clearly defined and relies on a defined procedure when applying it to a set of comparable stocks.”

The minimum investment required during the NFO period is ₹1,000 and in multiples of ₹Thereafter 100. There will be an exit load of 1% for redemption of units within 12 months of allotment.