Introduction
Have you ever imagined an AMC that does not rely on fund managers for investing? This is what Quant Mutual Fund is known for in the financial market.
It is an asset management company that started in 1996. The previous name of this AMC is Escorts Mutual Fund. In 2018, when it was acquired by Quant Capital Finance, it was renamed Quant Fund. The interesting thing about this AMC is its investing style. On one side where other AMCs rely on fund managers, it uses a quantitative model for investments. This quantitative model can be complex for some of you but after this article, you will get a clear understanding of it.
In this article, you will explore its investing strategy, best quant mutual funds and key advantages. So keep reading to explore everything.
What is Quant Mutual Fund?
The first question that comes to mind when talking about this AMC is what Quant means. It is a model that combines mathematical calculations. This exact model quant fund uses to manage portfolios and make investments.
At present, you can invest in 27 Quant mutual funds which include 20 equity, 3 debt and 4 hybrid funds. With its 27 schemes, the fund has Rs 96,696 crores of assets under management. Over the past few years, the fund gained popularity among investors for its unique investing style.
Now, its time to explore how this AMC invests.
What Strategy Does Quant Mutual Fund Use for Investment?
The Quant mutual fund is popular for their algorithms based strategy. Whether it is selecting stocks or managing portfolios, the fund uses this strategy. This model calculates a large amount of data where it analyses companies valuations, past performance and many other factors. Once it finds good stocks, it invests in those stocks.
This model is not only able to find good stocks but also make quick decisions. It means the model can calculate a large amount of data in a short time. This helps the fund to pick future growth possibilities early before others enter. In simple words, it actively manages your quant mutual fund portfolio and when any sector seems to perform well, it adjusts your portfolio allocation. With quality stock investment and adaptability, the fund is able to deliver great returns for a long time.
This time to look at some of the advantages of this fund.
Advantages of Quant Mutual Fund
Quant funds come with a lot of advantages which you can benefit from as an investor:
1. Data Driven Stock Selection
It only invests in stocks that have great company valuation, growth and past performance. By checking these factors, the fund identifies valuable stocks for investment.
2. Reduce Human Errors
The problem with human fund managers is they can make mistakes like wrong fund selection or delay in fund allocation. The Quant mutual fund reduces these errors with its machine based model that uses data to make investments.
3. Strong Risk Management
The biggest advantage of quant funds is their stock risk management. Because its machine based model can calculate a large number of data in a short time. Quant funds can make early decisions before any major changes in the market.
Now, lets see some of the best Quant funds that can make your investment profitable.
Best Schemes of Quant Mutual Fund in 2025
Over time, quant funds performed very well but a few best Quant mutual funds have delivered record-breaking performance:
1. Quant Manufacturing Fund: It is an equity fund of Quant that focuses on investing in manufacturing sectors. With an AUM of Rs 804 crores, it is a best scheme for investors who want to make great returns while taking high risks.
2. Quant Momentum Fund: This fund is a great choice for investors who want to make good returns. Because it focuses on investing in stocks that recently performed well. If you want to invest for the long then you should invest in this fund.
3. Quant Liquid Fund: If you do not want to take higher risk, then investing in this fund is a safe option. This fund invests in debt instruments like government bonds, treasury bills and commercial papers.
4. Quant Overnight Fund: This fund is best for those investors who want the safest option to start investing. It invests in stocks that earn small returns daily. The amazing part is you can also invest in the fund with a SIP plan.
5. Quant Absolute Fund: If you like to achieve a balanced return, then this fund is for you. It invests in a mix of equity and debt funds which helps to build a stable growth. With an AUM of Rs 1,922 crores, it is good for conservative (low risk) investors.
Have you thought about why the quant funds in India are considered a safe investment? Lets explore.
Why is Quantum Mutual Fund Safe for Investment?
Are you worried about whether quant funds give you the best value for your money? Well, these factors show why it is a safe investment option:
1. Systematic Way of Investment
You know one thing that makes these funds a safe investment is their quality investment. It invests in stocks that come with a strong performance history. You can also invest through a SIP plan where you can reduce the risk by investing a small amount at set times.
2. Lower Management Cost
Instead of relying on fund managers, Quant fund uses algorithms to make investments. The biggest advantage of this approach is a lower expense ratio. Because your portfolio is managed by algorithms, it reduces the cost of management fees.
3. Better Risk Management
It uses diversification to spread your quant mutual fund portfolio into different sectors such as industrial, banks and healthcare which helps to reduce the risk. The amazing thing is it also adjusts your portfolio allocation from time to time according to how the market reacts.
4. Transparency
As an investor, if you want to have proper knowledge about how your investment is doing in mutual funds then investing in quant funds is a great option. It regularly provides updates about how your portfolio is performing which helps you to invest confidently.
After learning about this unique AMC, its time to conclude this article with final thoughts.
Final Thoughts
In short, Quant funds in India give a unique opportunity to investors. After reading this article, you can understand how effective its investing model to manage risk and achieve future growth. Its importance increases even more when you understand its ability to calculate large amounts of data that helps to adjust the portfolio before market shifts.
One best way to invest in these funds is by starting an SIP plan. This plan helps you to invest a small amount at fixed times rather than putting a large sum of money. When you are investing a small amount, it reduces the risk of losing big and you can invest stress-free.
