Quant Mutual Funds: Low costs, high returns, 5 funds made money, gave up up to 43% gains in 3 years

New Delhi. Quant mutual funds are also slowly gaining popularity in India. This is due to the excellent returns of some quant funds. The fund manager does not play a major role in stock selection in quant funds. These investment fund systems decide on the shares to be invested on a mathematical basis (algorithm) using computer software. A few quant funds have provided investors with decent returns over the past three years. These funds include Quant Value Fund, Quant ESG Equity Fund, Nippon India Quant Fund, DSP Quant Fund and Tata Quant Fund. Although these funds have had good returns so far, investors need to remember that mutual funds do make a profit, but it doesn’t have to.

To get a better return from a stock investment, two pieces of advice are generally given. The first investor should never be carried away by emotions and decide to invest. Second, investment decisions should always be based on facts, i.e. data. Because quantum-based investment fund systems follow a data-based approach when selecting shares. Fund houses adopt their own internally developed model. Stocks are selected based on factors such as earnings, price-to-book, P/E, growth and valuation. With less human intervention, the risk of letting emotions guide your choice of stock is negligible.

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Three big benefits of Quant Fund
The cost of investing in quant funds is very low as they have an expense ratio of 0.5%. In other funds it is between 1.25 and 2.50 percent. In terms of returns, the Quant Fund outshines other fund categories and gives investors substantial returns. With quant funds, the fund manager is quite limited in his stock selection. Therefore, the risk of misconduct such as front running and insider training is very low.

These quantitative funds delivered excellent returns
As of May 15, 2023, Quant Value Fund was one of the top funders over the past three years. The three-year return was 43.50 percent. The return was 13.23 percent in two years and 15.41 percent in one year. The Quant ESG Equity Fund has returned 40.2% in three years, 12.16% in two years and 16.58% in one year. The return of the Nippon India Quant Fund was 25.96% over three years, 13.52% over two years and 22.66% over one year. The DSP Quant Fund has returned 21.40% in three years, 7.40% in two years and 11.30% in one year. The return of the Tata Quant Fund was 14.78% in three years, 5.12% in two years and 16.71% in one year.

(Disclaimer: The mutual funds mentioned here are based on the advice of a financial advisor. If you are interested in investing in any of these funds, you should first consult with a certified investment advisor. News18 is not responsible for your gain or loss of any kind. Will not be taken care of.)

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