The UTI Quant Fund, an open-ended equity strategy created to take use of quantitative investment methodologies, was introduced by UTI Mutual Fund. The New Fund Offer (NFO), which went live on Thursday, will end on January 16, 2025.
Its Factor Allocation Model, which constantly balances four important investment factors - Momentum, Quality, Low Volatility, and Value - is what makes the fund unique. This strategy aims to control market volatility throughout several market cycles while producing alpha above the BSE 200 TRI benchmark.
"In order to achieve comparatively higher risk-adjusted returns, this factor model assists in managing the volatility frequently observed in the overall market. It is a strong tool for navigating all market contexts because of its flexibility across market cycles, which allows it to modify exposure across elements based on market conditions and provides a layer of adaptation. The fund is a compelling choice for investors looking for possibly higher returns in a range of market scenarios because to the risk-return balance shown in its historical performance," the business stated in a press release.
Based on a quantitative investment theme, the fund will allocate 80–100% of its assets to equity and equity-related instruments; 0–20% to equity and equity-related instruments that are not based on a quantitative investment theme; 0–20% to debt and money market instruments; and 0-10% to units issued by REITs and InvITs.
The purpose of the UTI Quant Fund is to give investors access to evidence-based strategies that offer flexibility and adaptability that may not be available through more conventional investment methods. "This dynamic fund allocation model is a compelling option for a variety of market conditions because it strikes a balance between risk and return," stated Sharwan Kumar Goyal, Head of Passive, Arbitrage & Quant Strategies at UTI AMC.
Information on the UTI Quant Fund
Investment goal: Using a quantitative investment concept, the fund invests in equities and equity-related assets with the goal of producing long-term capital appreciation. Like all mutual funds, there are no assurances that the investing goals will be met.
Investment strategy: The plan employs an active investment technique. The fund's stated strategy is a quantitative investment methodology in an effort to generate long-term capital growth. The investment strategy of the fund is to combine quantitative analysis using market indicators with fundamental study.
1. January 2, 2025, to January 16, 2025 is the NFO period.
2. BSE 200 TRI is the benchmark.
3. Initial investment of at least Rs 1,000, with further investments made in multiples of Re 1.
4. Sharwan Kumar Goyal is the fund manager.
5. Regular and Direct Plans (growth option only) are the available plans.
6. If redeemed or switched out within 90 days, the exit load is 1%; otherwise, it is 0%.
7. Expense ratio: Regulation 52 (6) (c) allows for a maximum total expense ratio (TER) of 2.25 percent.
8. Product suitability: Perfect for a quantitative investment theme that promotes long-term capital growth
Who ought to make an investment?
Investors looking for long-term capital growth using a methodical, evidence-based approach to investing will find the UTI Quant Fund ideal. To ascertain whether this product is appropriate, prospective investors are urged to speak with their financial advisors.
