ICICI Prudential Quant Fund NFO

ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Quant Fund. The scheme would be investing in equity securities of the companies while following a quantitative model.

As per the press release, a composite score based on different quantitative parameters will be assigned to companies, and exposures will be taken in companies with high scores while taking into account their market capitalization.

The New Fund Offer (NFO) starts from 23rd November 2020 and will end on 07 December 2020.

Investment Objective

The investment objective of the scheme is to generate long-term capital appreciation for investors by investing in equity & equity-related securities of companies determined on the basis of a Quantitative model.

What is Quant Investing?

Quant Investing is a strategy of making investments in market securities by using various mathematical models, technical analysis & quantitative parameters for selecting the securities to comprise in a portfolio. The strategy aims to reduce or limit the intervention of humans in the investment-related decision-making process & thereby avoiding human behavioral biases.

How is the portfolio constructed?

Step-1: The first step involves negative screening i.e elimination of stocks from the benchmark universe which don’t meet the requirements.

Step-2: Then comes the process of shortlisting the companies using macro, fundamental & technical parameters.

Step-3: The composite scores of shortlisted companies are calculated by assigning equal weights to different parameters.

Step-4: At last, a portfolio comprising 30-60 stocks is constructed on the basis of their composite scores while also considering the market capitalization of stocks to have good liquidity.

Why invest in ICICI Prudential Quant Fund?

Here are some of the advantages of investing in ICICI Prudential Quant Fund:

· A Quantitative model for investments ensures that there is limited human intervention which will help to avoid behavioral biases.

· A Diversified portfolio across businesses, and sectors will reduce overall risks in the portfolio.

· Quant model provides a systematic approach to investing by combining investing experience & avoiding the scope of human errors.

· Passive investing through a quantitative model taking into account various macro indicators & fundamental parameters like P/E ratio, Return on Assets, etc.

· Well qualified team with prior experience in managing assets based on a quantitative model.

Suitability

This scheme is suitable for investors who are -

Having a high-risk appetite
Interested in Long term wealth creation.
Interested in making investments in an equity scheme which invests in equity & equity-related securities of companies selected on the basis of a quant model.

Assets Allocation Pattern-

Instruments	Minimum % of total assets (Indicative)	Maximum % of total assets (Indicative)	Risk Profile
Equity & Equity related securities	95	100	High
Debt and Money market instruments	0	5	Low to Moderate
Units of other Mutual Fund schemes	0	5	Moderate to High
Units that are issued by REITs and INVITs	0	5	Moderate to High

About the scheme-

Name of the fund	ICICI Prudential Quant Fund
Fund launched by	ICICI Prudential Mutual Fund
Asset Management Company	ICICI Prudential Asset Management Company Limited
Type of scheme	An open-ended equity scheme investing in companies determined on Quant based investing theme
Investment Objective	The investment objective of the scheme is to generate capital appreciation over the long term through investments in equity & equity related securities identified based on a quantitative model
Benchmark	S&P BSE 200 TRI
Entry Load	Not Applicable
Exit Load	1% of applicable NAV - If units are redeemed or switched out within 3 months. Nil - If units are redeemed or switched out after 3 months.
Minimum Application Amount	Rs. 1,000 & in multiple of Rs.1 thereafter
Minimum Additional Amount	Rs. 500 & in multiple of Rs.1 thereafter
STP & SWP	Available
Capital Appreciation STP SIP Plus SIP Pause	Available
Plans Available	Regular Direct
Options	Growth Dividend Payout Dividend Reinvestment
Fund Manager	Mr. Roshan Chutkey

SIP Details

Type	Minimum Installments	Minimum Amount
Daily, Weekly, Fortnightly & Monthly	6	Rs.100 & in multiple of Rs.1 thereafter
Quarterly SIP	4	Rs. 5000 & in multiple of Rs.1 thereafter