SBI MF Multi Factor Based Quant Fund NFO To Navigate Volatile Markets

SBI MF's new fund is suitable for volatile market conditions as it focuses on four factors momentum, value, quality and growth while selecting stocks in portfolio..

“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," said Nand Kishore, managing director & CEO, SBI Funds Management.

"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. The fund’s benchmark is the BSE 200 index.

“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,” said D P Singh, deputy MD & joint CEO, SBI Funds Management.

The fund would predominantly invest a) 80 per cent-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 and money market instruments d) 0 – 10 per cent in units issued by REITs and InvITs. The scheme also opt for investment in units of mutual fund schemes including domestic & overseas ETFs up to 20 per cent 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 not exceed 35 per cent of the net assets of the scheme and will be in line with the maximum limits available from time to time.