Aditya Birla Sun Life Mutual Fund has introduced the Aditya Birla Sun Life Quant Fund, an open-ended equity thematic fund that follows a quant-based investing strategy. The scheme opened for public subscription on June 10, 2024, and will close on June 24, 2024. It will re-open for continuous sale and repurchase within five days from the date of allotment.
Type of Mutual Fund Scheme
This is an open-ended equity scheme based on a quant-based investment theme.
Comments from the Management
A. Balasubramanian, Managing Director & CEO of Aditya Birla Sun Life AMC, remarked, “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.”
Investment Objective
The primary objective of the scheme is to generate long-term capital appreciation by investing in equity and equity-related securities using a quant model theme.
Fund Offering Insights
Harish Krishnan, Co-CIO and Head of Equity at Aditya Birla Sun Life AMC, commented, “This is the first such offering from our fund house. We will start by narrowing the universe of stocks to those in the large and midcap category, evaluating their quality based on their fundamental track record. We will then consider the relative returns generated over the last six months and the composite scores assigned by various sell-side analysts. Ultimately, we will construct a portfolio of 40-50 stocks, initially applying equal weight to all, and then adjusting the weight of individual stocks based on low volatility.”
Investment Details
Investors can invest in this scheme with a minimum amount of ₹500 per plan/option and in multiples of ₹1 for purchase and ₹0.01 for switches. There is also the option to invest through a Systematic Investment Plan (SIP) with a minimum of ₹500 per installment, subject to a minimum of 10 SIP installments of ₹500 each during the new fund offer (NFO) period. There is no upper limit for investment.
Performance Benchmark
The scheme’s performance will be benchmarked against the Nifty 200 TRI. The Nifty 200 Index reflects the behavior and performance of large and mid-market capitalization companies, making it suitable for benchmarking funds in the Quant theme.
Entry and Exit Loads
There is no entry load for this scheme. The exit load is structured as follows:
- For redemption/switch-out of units on or before 90 days from the date of allotment: 0.50% of the applicable NAV.
- For redemption/switch-out of units after 90 days from the date of allotment: Nil.
Fund Management
Harish Krishnan will manage the equity investments of the scheme.
Risk Considerations
The scheme is classified as having “Very High Risk,” as detailed in the Scheme Information Document. It is best suited for investors who understand and are willing to accept that their principal will be subject to very high risk. Investors should consult their financial advisors if they have any doubts about the suitability of this product for their portfolio.
