NFO: SBI Mutual Fund launches Quant Fund; check out subscription dates, theme, minimum investment and other key details

State Bank of India (SBI) Mutual Fund has launched a new fund offer (NFO) named SBI Quant Fund, an open-ended equity scheme, according to a statement.

“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," said Nand Kishore, MD and CEO, SBI Funds Management.

SBI Quant Fund: Theme

The NFO is an open-ended equity scheme that follows a quant-based investing theme.

Aim of SBI Quant Fund

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.

SBI Quant Fund: Subscription dates

The NFO will open on Wednesday, December 4, 2024, and will close on Wednesday, December 18, 2024.

Benchmarked against BSE 200 TRI, the new fund will be managed by Sukanya Ghosh and Pradeep Kesavan.

Who should invest in SBI Quant Fund?

According to SBI Mutual Fund, Investors who 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 optimise performance across various market cycles," said D P Singh, deputy MD & joint CEO, SBI Funds Management Limited.

The fund would predominantly invest

80-100 per cent 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 per cent in Equity and equity-related instruments of companies other than above c) 0 – 20 per cent in Debt and Debt-related instruments (including securitised debt {up to 20 per cent of the debt portion of the scheme} & debt derivatives) and money market instruments including tri-party repos d) 0 – 10 per cent 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) up to 20% of the net assets of the scheme,” the mutual fund house said in a statement.

SBI Funds Management Limited (SBIFM), the asset management company of SBI Mutual Fund is a joint venture between the State Bank of India, India’s largest bank, and Amundi, Europe’s leading asset manager, serves as the asset management company for SBI Mutual Fund.