Tata Mutual Fund has recently launched a new mutual fund scheme known as Tata Quant Fund. Investors can subscribe to the New Fund Offer till January 17, 2020.
An open-ended equity scheme, Tata Quant Fund uses Machine Learning and Artificial Intelligence to formulate the investment portfolio. It will integrate multiple rule engines and predictive quantitative models to pick financial instruments for investment, with the objective of maximising returns during a bullish market and effectively containing losses during a bearish market.
Prathit Bhobe, Managing Director of Tata Asset Management, said, “Machines have massive computational power needed to process very large data sets, spot patterns and correlations, make decisions faster, objectively and without human biases. In the current world, computers are powerful enough to solve problems, a lot of data is available and we strive to use this data in combination with algorithms to its best,”
Features of Tata Quant Fund
The fund will use the economic data of the past 20 years, to design a concentrated investment portfolio based on the existing macro-economic conditions and future predictions by the algorithm. The fund house said that this process will be free from any human judgement and will solely be performed by the AI-powered algorithm.
The fund will be managed by Sailesh Jain who has professional industrial experience of more than 15 years. He says, “Tata Mutual Fund has developed intelligent machine-driven strategies keeping in mind the appetite of long-term equity investors. This framework crunches massive amounts of data, recognises patterns and leverages the power of technology. The future of investing is in the use of quants and with us entering a new decade, we believe that the Indian market is now ready for tech-based investing,”
Why Should You Invest in Tata Quant Fund?
- Usually, asset allocation and portfolio construction is done by a team of experts under the guidance of fund manager, based on internal research methodology and prediction of future market sentiment. But this fund uses computing technology and machine learning to construct the portfolio. This eliminates any human errors and biases that might hamper the fund returns in the long run.
- The portfolio would be rebalanced monthly to take into account the changing market dynamics and effectively mitigating market risk.
Who Should Invest in Tata Quant Fund?
- Investors who want to leverage the power of artificial intelligence and machine learning for their invested capital and achieve long term capital appreciation can opt for this fund
- As this fund is a thematic fund, whose returns are highly dependent on investment decisions made by rule engines and quantitative models, this fund is suitable for investors with moderate to high risk appetite.
- As the underlying assets will majorly be equity securities, this fund is recommended to individuals with long term investment horizon (5-7 years).
Other Funds by Tata Asset Management
| Scheme Name | 3 Years Returns (%) | AUM(Rs. Cr.) |
| Tata Index Sensex Direct | 14.28 | 5.04 |
| Tata Retirement Savings Fund Progressive Plan | 14 | 451.51 |
| Tata India Tax Savings Fund | 13.21 | 1398.27 |
| Tata Retirement Savings Fund Moderate Plan | 11.94 | 659.89 |
| Tata Large & Mid Cap Fund | 11.66 | 1297.88 |
| Tata Midcap Growth | 11.28 | 692.48 |
| Tata Large Cap Direct Plan | 10.84 | 799.42 |
| Tata Retirement Savings Fund Conservative Plan | 8.91 | 133.5 |
| Tata Equity PE Fund | 8.85 | 3519.81 |
| Tata Gilt Securities Fund | 8.1 | 117.76 |