Increasing the Awareness of Quant Funds

Anil Ghelani, Head of Passive Investments & Products DSP Investment Managers talks about the rise of quant funds and winning strategies employed by fund managers. Deepika Asthana, Moderator, Market Expert, moderated the webinar - Master Talk - Rise of Quant Funds - Alt Data, Sentiment, and Predictive Analysis jointly organised by Outlook Money and Refinitiv. Excerpts from the proceedings:

While the debate between value investing and growth style investing rages on, quant investing is slowly but surely grabbing a piece of the investor pie.

Over the last year, we have seen a lackluster performance of quant funds globally. However, in the backdrop of performance, Indian quant funds have outperformed benchmarks. “Globally, quant funds can be used for several strategies which might have a quantitative style or a few which are momentum-driven.” Structurally all the strategies and different managers adopting these strategies go through periods of outperformance and underperformance. In the last one or two years, few of the funds might have underperformed but there has also been a fair share of outperformance. In India, there are hardly five quant-based mutual funds; therefore structurally the space is quite small.