Oldest Quant Mutual Fund
Generally, Nippon Life India Asset Management Ltd. stood as the oldest quant mutual fund. So now, it seems to modify its methodologies to reinforce the returns.
Mr. Ashutosh Bhargava, Fund Manager, said that the fund came up looking forward to including some factors into its investment model. Besides, Mr. Bhargava brought up some standards such as increasing the frequency of churn in the portfolio and picking stocks from the broader S & P BSE 200 Index rather than the NSE Nifty 50 Index.
However, this came about in 2008 as Reliance Quant Fund. This remained as the first and oldest fund in India. Besides, it has aggregated an annual return of about 5.5% from the last 5 years. Comparatively, Nifty has 9.1% returns in the same period.
Universally, Quant Funds have given uneven returns in recent years. However, they have struggled to get along with the rapid changes in the market. Despite this, it has encouraged growing doubts on different quant strategies.
Mr. Bhargava insists that quant fund helped investors to gain access to a wide array of stocks at a lower fee. However, Tata Mutual Fund and DSP Mutual Fund have recently floated quant funds of their own.
Besides, the Nippon India Quant Fund has seen downfall by sudden changes in the market direction. Notably, it outperformed the BSE 200 at one point last year. However, a corporate tax cut last September ensuing market rally reversed that. Mr. Bhargava added that investors would come only when they see good returns over a while.