SBI Mutual Fund NFO:SBI Mutual Fund, one of the largest mutual fund houses in the country, has announced the launch of a new fund offer (NFO). This scheme, launched by the name of SBI Quant Fund, is an open-ended equity fund, which is based on quant-based investment theme. Subscription in this NFO will open on 4th December and will remain open till 18th December. SBI Quant Fund aims at long term capital growth. 80 to 100% of this fund will be invested in equity and equity related instruments. The selection of stocks for the scheme will be based on the quant model.
Meaning of quant based investment theme
Quant based funds select assets for investment in a special way. In this, investment decisions are made on the basis of data and calculations. This method makes extensive use of new technologies like artificial intelligence and algorithms. In a way, it can also be called the use of techniques like passive funds for stock selection in active funds. In this, fund managers make stock selection using a data-based model, in which both fundamental and technical factors are considered. Due to the use of artificial intelligence and algorithms, this process is completely fair and accurate. That means the personal feelings of the fund manager do not affect the investment. This increases investors’ hopes of getting better risk-adjusted returns.
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Investment Strategy of SBI Quant Fund
SBI Quant Fund aims to achieve capital growth in the long term. 80% to 100% of this fund will be invested in equity and equity related instruments. For this, the selection of stocks will be based on the quant model only. Apart from this, a maximum of 20% of the corpus of this scheme can also be invested in other assets and money market instruments. Apart from this, a maximum of 10% can also be invested in assets like REITs and InvITs. The benchmark of the fund is BSE 200 TRI.
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Important information for investors
The minimum amount to be invested in this fund is Rs 5,000, and thereafter investment can be made in multiples of Re 1. The minimum amount for additional investment is Rs 1,000. If investors exit the fund within 6 months from the date of allotment, they will have to pay 0.5% exit load. But after 6 months no exit load will be imposed. This scheme will be managed by experienced fund managers Sukanya Ghosh and Pradeep Kesavan. This fund is suitable for those investors who are interested in investing based on quant model and want long term capital growth.
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Special features of SBI Quant Fund NFO
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NFO date: 4 December 2024 to 18 December 2024.
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Minimum investment: Rs 5,000.
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Benchmark: BSE 200 TRI.
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Risk Level: Very High
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Fund Managers: Sukanya Ghosh and Pradeep Kesavan.
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Exit Load: 0.5% within 6 months, nothing after 6 months.
(Disclaimer: The purpose of this article is only to provide information and not to give advice on investing in any scheme. Take investment related decisions only after taking the advice of your investment advisor.)
