The SBI MF Quant Fund NFO opened for subscription on December 4, 2024 and will close on December 18, 2024. An investor needs to put in a minimum amount of Rs 5,000. According to SBI MF head of research, the SBI MF Quant Fund will keep track of 4 important factors such as growth, quality, value and momentum.
The investment objective of the Quant Fund is to generate long-term capital appreciation by investing in equity and equity-related instruments selected based on quant model themes, said the largest AMC of the country. Liquidity will also be one of the areas where SBI MF Quant Fund will have a lot of emphasis.
Investment strategy of SBI MF Quant Fund
According to the product material, SBI MF Quant Fund seeks to invest 80-100% of its funds in equity and equity-related instruments. As the name itself indicates, the investments will be based on a quantitative model, the rest 0-20% could be allocated in other equity-related securities, 0-20% in debt securities and money market instruments. Besides, these 0-10% could also find their way in REITs and InvITs.
SBI MF Quant Fund salient features
NFO opened on: December 4, 2024
NFO to close on: December 18, 2024
Benchmark index: BSE 200 TRI
Minimum application amount: Rs 5,000
SBI framework behind the Quant Fund
“This is a product that has been based on a framework on which we have been working for 8-10 years,” Ruchit Mehta, head of research of SBI Mutual Fund told Value Research. Mehta also mentioned that after years of testing and live testing it, fine tuning it in the market, they have felt confident to launch a product on this platform.
“If you look at the past few years, value has been a big factor. Value stocks are doing phenomenally. It was a value factor, or value tilt, that was working. Across the industry value-oriented funds did far better than growth or quality oriented funds. Every market cycle has a different factor that works. How do you capture that how do you ensure that you can move from one factor to another factor smoothly is something that this framework tries to capture,” explained Mehta.
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SBI Mutual Fund, the largest mutual fund house in India has launched an NFO for a Quant Fund. You can invest in the NFO of this open-ended equity fund till December 18, 2024. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
