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This week Axis Mutual Fund joined a select set of fund houses— DSP, ICICI Prudential, Tata, Nippon India and Quant—that offer quant funds. Since it is a new category, retail investors should educate themselves about it before investing.
How quant funds work
These funds select stocks by applying quantitative parameters or filters. Qualitative research (interviews with promoters and people within the sector) does not play a part in stock selection. Human discretion also does not have a role here. The fund management team prepares an algorithm that constructs the portfolio and rebalances it periodically.
No deviation from mandate
These funds do away with human
