Computerji, lock kiya jaaye: Midcaps that quant-based mutual fund algos select
Quant-based mutual fund schemes eliminate human intervention and possible bias, as they leave stock-picking to algorithms while constructing their portfolio. These are a mix of pure-bred passive and active funds.
Quant mutual funds aim to give you the best of active and passive funds. There are 10 such equity mutual fund schemes using computer-based algorithm while picking stocks. The algorithms are designed based on the company and industry filter that fund houses decide. These could be macro, fundamental and technical factors, including volume, volatility, liquidity, value, momentum and alpha. For instance, DSP quant fund builds its portfolio of stocks chosen on the basis of growth, quality and value parameters, while Nippon India quant fund select stocks on the basis of parameters like valuation, earnings, price, momentum and quality. Here are the most popular midcap stocks among the portfolio of the quant based mutual fund schemes. Stocks are shortlisted asper AMFI's MCAP classification. Portfolio data are as of August 31, 2024. [Source: ACEMF]
