NFO Alert: SBI Mutual Fund launches Quant Fund — all you need to know
SBI Mutual Fund launched the SBI Quant Fund, an open-ended equity scheme focusing on long-term capital appreciation through quantitative analysis. The NFO is open until December 18, requiring a minimum investment of ₹5,000.
SBI Mutual Fund has introduced a new fund offer (NFO) on December 4 called SBI Quant Fund. It is an open-ended equity scheme following a Quant-based investing theme and will be benchmarked against the BSE 200 TRI.
The scheme will stay open for investors until December 18 and will reopen for continuous sale and repurchase within five business days following the allotment date.
What are quant funds?
For those who are unaware, quantitative funds, or quant funds, are mutual funds which deploy quantitative analysis and algorithms to make investing decisions. They aim to eliminate human bias and emotion from the investment process and therefore rely on data-driven models to generate returns.
Investment details
The minimum application amount in SBI Quant Fund is ₹5,000 and in multiples of Re 1 thereafter. For additional purchases, the minimum amount is ₹1,000 and in multiples of Re 1 thereafter. The minimum amount for redemption or switch-out is ₹500, or 1 unit, whichever is lower, or the entire account balance.
Investment objective
The investment objective of the scheme is to seek to generate long term capital appreciation by investing in equity and equity related instruments selected based on quant model themes.
Asset allocation
The scheme will allocate 80-100% of its assets in equity and equity-related instruments selected based on a quantitative model. It will allocate 0-20% in other equity and equity-related instruments, 0-20% in debt securities (including securitised debt and debt derivatives) and money market instruments (including tri-party repo), and 0-10% in units issued by REITs and InvITs.
Key details of the SBI Quant Fund NFO
| Launch date | December 4, 2024 |
| Last date | December 18, 2024 |
| Category of the scheme | Equity – Thematic Fund |
| Benchmark index | BSE 200 TRI |
| New fund offer price | Rs. 10/- per unit |
| Minimum investment (initial) | ₹5,000 and in multiples of Re 1 thereafter |
| Minimum investment (additional purchases) | ₹1,000 and in multiples of Re 1 thereafter |
| Minimum redemption amount | ₹500 or 1 unit (whichever is lower) or the entire balance |
Exit load
An exit load of 0.5% of the applicable Net Asset Value (NAV) will be charged if units purchased or switched in from another scheme of the fund house are redeemed or switched out on or before six months from the date of allotment. No exit load will be charged if these units are redeemed or switched out after six months from the allotment date.
The scheme will be managed by fund managers Sukanya Ghosh and Pradeep Kesavan. It is suitable for those investors who are seeking long-term capital appreciation and want to invest in equity and equity-related instruments selected using the Quant model.
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Business NewsMoneyPersonal FinanceNFO Alert: SBI Mutual Fund launches Quant Fund — all you need to know
First Published:4 Dec 2024, 04:03 PM IST
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