SBI Mutual Fund has announced the launch of the SBI Quant Fund, an open-ended equity scheme designed around a quant-based investing approach. The scheme aims to generate long-term capital appreciation through equity and equity-related instruments selected using an in-house quant model. The fund will benchmark its performance against the BSE 200 TRI.
Nand Kishore, Managing Director & Chief Executive Officer, SBI Funds Management Limited, said, “As the largest fund house in the country we are committed to offering innovative investment solutions to our investors. The evolving landscape of factor-based investing presents significant opportunities for diversification and better risk-adjusted returns. Multi-factor investing combines various factors rather than focusing on a single one, helping to smooth out the cyclicality of returns and reduce behavioural biases in factor selection. Our SBI Quant Fund, based on an in-house multi-factor model incorporating Momentum, Value, Quality, and Growth factors, provides a strategic opportunity for investors to diversify their portfolios with an aim to achieve superior risk-adjusted returns.”
D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited, said, “The SBI Quant Fund is for those investors who believe in the India growth story and want to invest in equity with the benefit of periodic reviews through a rule-based investing framework. By integrating established equity factors, each with distinct risk/return profiles, the fund aims to deliver optimal risk-adjusted returns and minimise behavioural biases. The SBI Quant Fund utilises an in-house multi-factor model, incorporating factors such as Momentum, Value, Quality, and Growth to optimize performance across various market cycles.”
The SBI Quant Fund will predominantly allocate:
- 80%-100% to equity and equity-related instruments selected through the quant model.
- 0%-20% to other equity instruments and debt instruments.
- 0%-10% to REITs and InvITs, in line with SEBI limits.
The fund will be managed by Sukanya Ghosh and Pradeep Kesavan (dedicated fund manager for overseas securities).
The SBI Quant Fund offers a strategic opportunity for investors to diversify their portfolios with a robust rule-based framework, aiming for consistent returns across various market cycles. For more information, refer to the Scheme Information Document.
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