Axis Quant Fund: NFO closes on 25 June 2021

Axis Asset Management’s latest mutual fund scheme will be using a quantitative model to invest in equities. We bring you the details.

Good to know What is a quantitative model? It heavily relies on quantitative data to select stocks and make investment decisions. The quantitative model-based investment style is a combination of advanced mathematical modelling and vigorous data analysis. The use of this technique helps in achieving an unbiased and disciplined approach towards investment decisions.

Investment objective

The fund invests in equity and equity-related instruments based on a quant or rule-based model. However, it doesn’t completely shun the traditional style of investing. The fund uses a combination of fundamental approach (quality, growth and value) and rule-based criteria (usage of risk factors like sector/stock constraints and rebalancing frequency).

This model gives it a unique proposition of being a fundamentally driven quantitative fund. Also, by holding investments in 50-60 companies across sectors with varying market capitalisations, it aims to outperform across cycles.

The scheme does not assure or guarantee any returns.

Asset allocation

Types of Instruments	Indicative allocation (% of total assets)		Risk Profile
Equity & equity-related instruments of selected companies based on a quantitative model	80	100	High
Other equity and equity related instruments	0	20	High
Debt and money market instruments	0	20	Low to Medium
Units issued by REITs & InvITs	0	10	Medium to High

Scheme details

Name	Axis Quant Fund
Type	An open-ended equity scheme following a quantitative model.
Category	Equity scheme
Benchmark	S&P BSE 200 TRI
Plans	Direct and Regular
Options	Growth and Income Distribution cum Capital Withdrawal (IDCW) (payout and reinvestment facility)
Entry/exit load	Entry Load: Not applicable Exit Load: If redeemed/switched-out within 12 months - For 10% of investment: Nil, For remaining investment: 1% If redeemed/switched out after 12 months from the date of allotment: Nil
Fund Manager	Deepak Agrawal Hitesh Das (Foreign securities)
Minimum application amount	₹5,000 and in multiples of ₹1 thereafter
Additional application amount	₹100 and in multiples of ₹1 thereafter.
Expense ratio	2.25%

Riskometer

This product is suitable for investors who are seeking* Capital appreciation over the long term. An equity scheme that invests in equity and equity related instruments selected based on a quant model.

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Note: The above information has been sourced from the Scheme Information Document provided by Axis Asset Management Limited. To read the entire document, click here.

Disclaimer: The above article is purely academic in nature and aims to provide knowledge about basic trading concepts & should not be construed as an opinion or advice to invest or trade. RKSV Securities India Private Limited (brand name Upstox) is the distributor of the mutual fund. Mutual fund investments are subject to market risks; please read all the related documents and/or consult your investment advisor before investing. Past performance of an investment asset does not guarantee future returns.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.