IIFL Quant Fund NFO launched


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

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

The fund would be open for subscription from November 08, 2021 to November 22, 2021.

iifl mutual fund

NFO details for IIFL Quant Fund

Scheme Opens


Scheme Closes


Fund Manager

Mr. Parijat Garg


S&P BSE 200 (TRI)

Minimum Investment


Fund Category


Exit Load

1%  if redeemed or switched within a year


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


Additional reading: Click Here to read everything you ever wanted to know about a NFO mutual fund

IIFL 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.


IIFL Quant Fund Allocation

The asset allocation for the fund would be something like this

Asset Class

Minimum %

Maximum %

Equity and Equity Related instruments



Debt and Money market instruments



Units issues by REITS and InvITs




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.


Are you investing in the right mutual funds?


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.


As on 1st October 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

Axis 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.


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

How does Quant investing works?

There is little to no human intervention, therefore is no scope for human biases.

Quant strategies are system oriented and less reliant on human support, therefore churning of human personnel has no impact on fund management.

The model is always improving since new research periodically improves the overall setup, thereby making back testing a possibility.



Are you investing in the right mutual funds?

Who can invest in IIFL 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.



This fund is suitable for investors:

  1. Seeking long term capital growth.
  2. Are prepared to invest in an active portfolio of stocks screened and selected based on a predefined momentum factor model.
  3. Have an investment horizon of more than 5 years and


Understand the risk factors involved with momentum investing.  



Are quant funds better?

Quant funds are no better than non quant funds.

They may and can boast a far superior one year returns but not consistently.

This brings into question the long term effectiveness of such a model.

The risk reward ratio does not justify the volatility even for a small portion of your overall portfolio.

One year returns are tempting but they will always be for all types of mutual funds, let alone quant mutual funds.

Equity mutual funds were never, are not and will never be recommended for a one year period.


       India is still an emerging economy,it is way more sensitive in its reactions as compared to other developed economies. This is far more the case when it comes to mid, small, large&mid and even value schemes. 


       Expecting an algorithm to handle aggressive schemes that take the most beating in a market slump may not exactly be the most prudent thing to do.

For portfolio enquiriesemail us with your doubts at info@themutualfundguide.com

Disclaimer : While due precaution has been undertaken in the preparation of this article, The Mutual Fund Guide or any of its authors will not be held liable for any investments based on the above article. The above article should not be considered financial advice and has been published only for your perusal. Due credit has been given in case wherever required, in case you feel any part violates any rights then do get in touch with us and we shall get it duly removed.  
Mutual Fund investments are subject to market risks. Please read the offer document carefully before investing

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