SBI Mutual Fund Launches SBI Quant Fund for Long-Term Growth

SBI Mutual Fund is pleased to announce the launch of the SBI Quant Fund, an open-ended equity scheme that follows a quant-based investing theme. The scheme aims to generate long-term capital appreciation by investing in equity and equity-related instruments selected based on an in-house quant model. However, there can be no assurance that the investment objective of the Scheme will be realised. The fund’s benchmark is the BSE 200 TRI.

Mr. Nand Kishore, Managing Director & Chief Executive Officer, SBI Funds Management Limited, said, “As the largest fund house in the country we are committed to offering innovative investment solutions to our investors. The evolving landscape of factor-based investing presents significant opportunities for diversification and better risk-adjusted returns. Multi-factor investing combines various factors rather than focusing on a single one, helping to smooth out the cyclicality of returns and reduce behavioural biases in factor selection. Our SBI Quant Fund, based on an in-house multi-factor model incorporating Momentum, Value, Quality, and Growth factors, provides a strategic opportunity for investors to diversify their portfolios with an aim to achieve superior risk-adjusted returns.”

Mr. D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited, said, “The SBI Quant Fund is for those investors who believe in the India growth story and want to invest in equity with the benefit of periodic reviews through a rule-based investing framework. By integrating established equity factors, each with distinct risk/return profiles, the fund aims to deliver optimal risk-adjusted returns and minimise behavioural biases. The SBI Quant Fund utilises an in-house multi-factor model, incorporating factors such as Momentum, Value, Quality, and Growth to optimize performance across various market cycles.”

The fund would predominantly invest a) 80%-100% of its assets in Equity and Equity-related instruments selected based on a quantitative model, with the balance assets as per the following allocation: b) 0 – 20% in Equity and Equity-related instruments of companies other than above c) 0 – 20% in Debt and Debt-related instruments (including securitized debt {upto 20% of the debt portion of the scheme} & debt derivatives) and money market instruments including tri-party repos d) 0 – 10% in Units issued by REITs and InvITs, with the exposure in line with SEBI limits specified from time to time. The scheme shall invest in units of mutual fund schemes (including domestic & overseas ETFs) upto 20% of the net assets of the scheme. The fund may also seek investment opportunities in foreign securities including ADR/GDR/Foreign Equity, Overseas ETFs and Debt Securities subject to regulations. Such investment may not exceed 35% of the net assets of the scheme and will be in line with the maximum limits available from time to time. For more details on the asset allocation, please refer to the Scheme Information Document.

The Fund Managers for the SBI Quant Fund would be Ms. Sukanya Ghosh and Mr. Pradeep Kesavan (dedicated fund manager for overseas securities).