SBI Mutual Fund, a leading mutual fund company in the nation, has unveiled the introduction of a new fund offer (NFO). Introduced as SBI Quant Fund, this program is an open-ended equity fund that follows a quant-based investment strategy. The subscription for this NFO will commence on December 4 and will close on December 18. The goal of the SBI Quant Fund is to achieve capital appreciation over the long term.
Details about SBI Mutual Fund
This fund will allocate 80 to 100% of its resources to equity and equity-related assets. The choice of stocks for the plan will depend on the quant model. Funds based on quantitative analysis choose investment assets in a unique manner. In this, decisions regarding investments are based on data and calculations.
This approach utilizes new technologies extensively, including artificial intelligence and algorithms. It can be referred to as the application of technology, similar to how passive funds are utilized for stock selection within active funds. In this process, fund managers choose stocks through data-driven models that take into account fundamental and technical aspects.
It said that this procedure is entirely fair and precise
Thanks to the application of artificial intelligence and algorithms, this procedure is entirely fair and precise. In other words, the individual emotions of the fund manager do not influence the investment. This raises the likelihood of investors achieving improved risk-adjusted returns. The aim of SBI Quant Fund is to secure long-term capital appreciation. This fund will allocate 80% to 100% of its resources into equity and equity-related assets.
Up to 20% of the total corpus of this scheme may also be allocated
To achieve this, the choice of stocks will rely on the quant model. In addition to this, up to 20% of the total corpus of this scheme may also be allocated to other assets and money market instruments.