It is an open-ended equity scheme following Quant-based investment theme
Bengaluru, June 10, 2024: Aditya Birla Sun Life AMC Limited (ABSLAMC) was incorporated in the year 1994. Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc. are the promoters and major shareholders of the Company. ABSLAMC is primarily the investment manager of Aditya Birla Sun Life Mutual Fund, a registered trust under the Indian Trusts Act, 1882. The asset manager has announced the launch of Aditya Birla Sun Life Quant Fund, an open-ended equity scheme following Quant-based investment theme. The New Fund Offer (NFO) will remain open from June 10th to June 24th, 2024.
The fund’s investment strategy is built around a proprietary quantitative model that aims to capture the best of both world’s by involving man and machine. Quant investing is unaffected by greed & fear and is therefore, an emotion free investment approach. Model based investing not only provides greater flexibility & repeatability but also maintains discipline by pre-defining the entry and exit points. It also enhances the transparency since every decision is rule based and offers better risk management with both man and machine monitoring the portfolio.
Commenting on the new fund launch, A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Ltd, said, “In today’s complex markets, we believe quantitative investment strategies can offer valuable advantages such as improved transparency, emotion-free decision making and robust risk management. The quant fund aims to leverage the combined strengths of human expertise and quantitative models to provide investors with a differentiated investment solution. The Aditya Birla Sun Life Quant Fund, will deliver these benefits to investors through a rigorous, research-driven approach for an innovative investment process powered by tech and guided by wisdom.”
Commenting on this unique fund offering, Harish Krishnan, Co-CIO and Head Equity, Aditya Birla Sun Life AMC Ltd., said, “this is the first such offering from our fund house, we will start by narrowing the universe of stocks such that they fall in the large and midcap category. Next, we will evaluate the quality of stocks based on their fundamental track record. Post this, we will look at the relative returns generated in the last 6 months of this universe and then look at the composite score assigned by various sell-side analysts. Ultimately, we will arrive at a portfolio comprising of 40-50 stocks by first applying equal weight to all and then skew the weight of individual stocks basis low volatility.”
