Axis Quant Fund launched by Axis Mutual Fund

Axis Mutual Fund is coming out with a NFO in the form of Axis Quant Fund.

Axis Quant Fund as the name suggests, would be a quant fund.

The fund would be open for subscription from June 11, 2021 to June 25, 2021.

NFO details for Axis Quant Fund

Scheme Opens	11/06/2021
Scheme Closes	25/06/2021
Fund Manager	Mr. Deepak Agrawal Mr. Hitesh Das (Foreign Securities)
Benchmark	S&P BSE 200 (TRI)
Minimum Investment	5,000
Fund Category	Quant
Exit Load	Nil if 10% redeemed or switched within 12 months & 1% for remaining amount if redeemed within a year

Axis Quant Fund would be an open – ended fund investing in equity and equity related instruments based on a quantitative model.

Axis Quant Fund Investment Objectives

The investment objective of the fund is to generate long term growth while investing applying a quantitative style in equity and equity related instruments.

There is no guarantee that the investment objectives of the scheme would be achieved.

Axis Quant Fund Allocation

The asset allocation for the fund would be something like this

Asset Class	Minimum %	Maximum %
Equity and Equity Related instruments based on Quant model	80	100
Other Equity and Equity related instruments	0	20
Debt and Money market instruments	0	20
Units issues by REITS and InvITs	0	10

The above figures are only indicative and not fixed, the fund managers have the liberty to move across the asset classes depending upon prevailing market conditions as long as they remain within the mandate permitted.

The fund can also invest in REITs and InvITs if so desired.

What are quant mutual funds?

Quant mutual funds are more concerned with the quantitative side of things rather than the quality.

They filter and select companies on a quantitative analysis based on a mathematical formula.

Unlike other mutual funds, quant mutual funds have little scope for human intervention and is mostly driven by mathematical formulae.

The role of a fund manager is limited.

Additional reading: Click Here to read our complete review of Quant Active Fund

As on 1^st June 2021, the following funds follow a Quant model:

All Quant mutual fund schemes

ICICI Quant Fund

Tata Quant Fund

DSP Quant Fund

Nippon Quant Fund

What is quant model?

The Merriam-Webster dictionary defines Quant as

‘’An expert at analyzing and managing quantitative data’’

A Quant based Mutual Fund Scheme is one that is far more driven by number, statistics and data than a macro- economic approach.

Now what constitutes these numbers varies from Fund House and at times, even schemes. For some it might be the quarterly results to the PE ratio.

This approach for example would be more reactive to the effect of a change in RBI Governor has on the market prices rather than predicting what effect it would have in the future.

Meaning the mere change in RBI Governor has absolutely no bearing on its functioning but if the change has an effect on the stocks it holds and wishes to sell or buy then it would react accordingly.

The stock selection process is quantitative driven and human intervention is limited, it picks up stocks based on their number irrespective of other factors.

Robert Merton is considered one of the founding fathers of quantitative study and this was way before the advent of modern computers. With modern changes, it was imbibed with technology and is today used by financial institutions around the world including Fund Managers.

The fundamental approach of this practice is to break down complex mathematical data to look for alpha or excess return. There has to be something more than what a Fund Manager can provide and that is where its value comes into the picture.

Who can invest in Axis Quant Fund?

The following persons are eligible and may apply for Subscription to the Unit(s) of the Scheme:

Resident adult individuals either singly or jointly (not exceeding three) or on an Anyone or Survivor basis;

Minor (as the first and the sole holder only) through a natural guardian (i.e. father or mother, as the case may be) or a court appointed legal guardian. There shall not be any joint holding with minor investments;

Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs) / Overseas Citizen of India (OCI) residing abroad on repatriation basis or on non-repatriation basis;

Such other category of person(s) permitted to make investments and as may be specified by the AMC / Trustee from time to time.

“The landscape of active equity investing has evolved and markets are becoming more efficient. While introducing new fund offers in the market, our constant aim has been to provide investors with a product basket that suits their needs and helps them in diversify their portfolio, allowing them to make long term allocations.

The launch of 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,” said Chandresh Nigam, MD & CEO, Axis AMC.

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Mutual Fund investments are subject to market risks. Please read the offer document carefully before investing