Mutual funds: Kotak Mahindra AMC launches Kotak Quant Fund. When can you invest? Check all the details here

Kotak Mutual Fund has launched Kotak Quant Fund, an open-ended equity scheme following quant-based investing theme. The scheme opens for public subscription on July 12 and will close on July 26.

The primary investment objective of the Kotak Quant Fund is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities selected based on a quant model theme. It is important to note that there is no assurance that the scheme’s investment objective will be achieved.

Nilesh Shah, Managing Director at KMAMC, said, “Imagine an impactful partnership between an experienced umpire and advanced technology such as Decision Review System (DRS). In a similar fashion, Kotak Quant Fund combines the knowledge of our investment team with the invaluable insights obtained from our quant model. This dynamic collaboration, comparable to an umpire utilizing DRS, aims to construct a portfolio through a well-balanced and data-driven investment strategy. However, it is important to note that this fund should not be evaluated based on short-term performance and necessitates patience to witness results over a period of three–five years.”

How much you can invest: Investors can invest a minimum amount of Rs 5,000 in multiples of Re 1 for purchase and Re 0.01 for switches. They can also invest through a Systematic Investment Plan (SIP) Rs 500  (Subject to a minimum of 10 SIP instalments of Rs 500 each) during the New Fund Offer (NFO) period.

Quant funds are those mutual fund schemes whose asset allocation, including stock selection, is decided based on a predefined set of rules. The important benefit of using a quantitative model to select stocks is that it eliminates human interference. Hence, it reduces the possibility of bias in the stock selection process.

Kotak Mahindra Asset Management Company Ltd has developed a robust quantitative model based on historical market data. This model can serve as a testament to KMAMC's expertise in market analysis and portfolio management, which has been significantly enhanced over the past three years through a combination of technology and analytics. Extensive tests, including rigorous back testing of risk-return characteristics and evaluations of the soundness of fundamental logic across various investment horizons, have been carried out by both industry professionals and academic experts. A dedicated quantitative analyst supports the fund manager with these valuable insights to make well-informed decisions and uncover compelling investment opportunities.

Harsha Upadhyaya, CIO of equity, KMAMC, says, “Kotak Quant Fund seeks to generate long-term capital appreciation with data-driven investing, where the wisdom of market data meets the quant model. By blending fundamental insights with behavioural factors, this open-ended equity scheme delivers an optimised portfolio that paves the way for long-term capital appreciation. Embrace the future of investing and seize the potential for growth through our quant-based approach.”