Mumbai: Kotak Mahindra Asset Management Company, among the top 5 AMC’s by assets, will launch Kotak Quant Fund, an open-ended equity scheme following Quant based investing theme, after three and a half years of research on machine-based investing approach. Quant uses advanced alogorithms to buy and sell based on pre-fed parameters.
The machine in this fund will replace the fund manager in determining the stock picking based on fixed parameters from an eligible universe of stocks filtered by the fund manager. The expectations is for the fund to have assets of ₹4000-5000 crore in time.
The primary investment objective of the Kotak Quant Fund is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities selected based on a quant model theme. However, there is no assurance that the investment objective of the scheme will be achieved.
“Kotak Quant Fund seeks to generate long term capital appreciation with data-driven investing, where the wisdom of market data meets the quant model. By blending fundamental insights with behavioural factors, this open-ended equity scheme endeavours to deliver an optimized portfolio that paves the way for long-term capital appreciation,” said Harsha Upadhyaya, CIO – Equity, KMAMC.
The scheme opens for public subscription starting from July 12th, 2023, and will close on July 26th, 2023. Investors can invest a minimum amount of ₹5,000 and in multiples of Re.1 for purchase and Re 0.01 for switches. They can also invest through Systematic Investment Plan (SIP) Rs. 500/- (Subject to a minimum of 10 SIP installments of Rs. 500/- each) during the New Fund Offer (NFO) period.
The product, according to Kotak MF, is suitable for investors seeking long term capital growth and invest in equity and equity related instruments based on a quant model.
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Updated: 12 Jul 2023, 01:16 AM IST