Lotus India’s first Agile Fund opens from Oct 25

PFW Bureau / Oct 24

Lotus India AMC has launched India’s first Quant based mutual fund scheme - Lotus India AGILE  Fund (Alpha generated from industry leaders fund).

Quant funds operate on the basis of computer generated mathematical models designed by the fund management team. The investment objective of this scheme is to generate capital appreciation by investing in a passive portfolio of stocks selected from the industry leaders on the basis of a mathematical model.

The New Fund Offer (NFO) priced at Rs 10 per unit (plus applicable entry load) will open for initial subscription from October 25 and will close on November 23. The fund will re-open for ongoing purchases and redemptions from December 20. The fund will invest 90-100% in equity and equity related instruments and 0-10% in debt and money market instruments. The fund offers two options - growth and dividend. The dividend option offers dividend payout and dividend re-investment facilities.

Lotus India Agile Fund is an open ended equity scheme that will invest in 11 stocks (9% each) determined by a mathematical model. The portfolio will be reviewed and reset every month.

Speaking on the occasion of the launch, Ajay Bagga, CEO, Lotus India AMC said, “Lotus India Agile Fund employs a quantitative investment approach, which is a first of its kind in the asset management industry in India. This fund will redefine the product suite available in the market and will provide investors a model based alternative to the existing value and growth based investing philosophies. Based on the extensive backtesting done, we believe that this offers an attractive additional asset allocation opportunity to equity mutual fund investors.”