SBI MF files for new quant fund

Published on May 23, 2024 14:45

SBI Mutual Fund has submitted draft documents with Sebi for the launch of SBI Quant Fund, a new scheme focused on long-term capital appreciation.

This open-ended equity scheme leverages a quantitative model-based investment strategy. SBI`s proprietary model will analyze companies using both fundamental and technical factors. By combining these aspects, the fund aims to select stocks with strong potential for growth over the long term.

Investors can participate with a minimum investment of Rs 5,000 and subsequent investments in multiples of Rs 1. The fund`s performance will be measured against the Nifty 200 TRI (Total Return Index). A team led by Sukanya Ghosh and Pradeep Kesavan will manage the scheme.

SBI Quant Fund`s primary focus will be on equity and equity-related instruments chosen by the quantitative model, accounting for 80-100% of the fund. Up to 20% can be invested in other equity and equity-related instruments, while a similar portion can be allocated to debt instruments and money market instruments for portfolio diversification. Additionally, the scheme allows for up to 10% investment in units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

This scheme caters to investors seeking long-term capital growth and comfortable with "very high" risk, as designated by the scheme`s riskometer. Those interested in a quantitative model-driven approach to equity investing for long-term goals may find SBI Quant Fund an attractive option.