IIFL Mutual Fund (MF) on November 8 announced the launch of IIFL Quant Fund. The new fund offer (NFO), which opened today, will close on November 22, 2021.
A quant fund, also known as a smart-beta fund in industry parlance, uses a combination of rules to pick investment ideas.
As a set of rules guides the fund’s investment decisions, there is no active fund management involved in the buy or sell decisions of a stock.
“The passive+ approach that the fund follows is based on multiple quantitative factors that have been back-tested and historically proven to improve stock selection capabilities. The model has a fundamental basis with parameters clearly laid out and relies on a defined process while applying the same across a set of comparable stocks,” said Manoj Shenoy, chief executive officer of IIFL Asset Management Company.
This is just the second equity fund getting launched by IIFL MF. IIFL Focused Equity Fund manages investor assets worth Rs 2,510 crore.IIFL MF’s overall asset size stands at Rs 3,128 crore, with a dynamic bond fund and a liquid fund among the other products offered by IIFL MF.