Always follows rules
Unswayed by emotions
This new quant-based equity fund builds its portfolio by following Good Investing Principles & aims to generate value while reducing biases & staying unemotional.
This new quant-based equity fund builds its portfolio by following Good Investing Principles & aims to generate value while reducing biases & staying unemotional.
WHY DSP Quant Fund?
Good equity investment outcomes come from following 3 simple rules:
Good equity investment outcomes come from following 3 simple rules:
BUYING GOOD COMPANIES AT REASONABLE PRICES
HOLDING THEM FOR THE RIGHT TIME PERIOD
REMAINING UNBIASED & UNEMOTIONAL
But following these rules is not easy. Even the smartest investors find it difficult to remain unemotional while investing and at times, end up taking irrational decisions. This can greatly affect long-term returns.
Now, at what stage do emotions affect the investment process? This happens at two levels: while a portfolio is being built and while an individual actually invests. While an investor can try to invest unemotionally by investing for the long-term via a SIP, DSP Quant Fund helps by reducing human biases while building the portfolio–by simply following fundamental rules of investing with little human interference.
HOW DOES it work?
Beginning with the universe of companies from the S&P BSE 200,
our model filters these companies using a 3-step process.
Beginning with the universe of companies from the S&P BSE 200, our model filters these companies using a 3-step process.
Companies with high debts, inefficient capital allocation or stocks that indicate high volatility are removed in an unbiased way
Companies are evaluated on factors such as Quality (Return on Equity, Earnings etc), Value (Dividend Yield, Free Cash Flow Yield etc) and Growth (Estimated earnings growth etc) and the best ones are chosen
Each selected stock is weighted appropriately to reduce stock & sector concentration and liquidity risk
HOW HAS THE MODEL PERFORMED?
The model behind DSP Quant Fund has been rigorously back-tested
over multiple market cycles. Here is what the evidence suggests:
The model behind DSP Quant Fund has been rigorously back-tested over multiple market cycles. Here is what the evidence suggests:
In 10 out of the past 14 calendar years, the model outperformed its benchmark#
100% of time the model outperformed its benchmark over any 5 year, 7 year or 10 year period*
100% of time the model delivered >12% average annual returns (CAGR) over any 7 year or 10 year period*
A long-term SIP in the Quant model would have outperformed a similar SIP in the benchmark S&P BSE 200 TRI (13%)
In both years when the benchmark delivered negative returns (2008, 2011), the model still performed better^
14% lowest average annual returns (CAGR) over any 7 year or 10 year period*
#BSE 200 TRI, *Rolling returns; ^Total Returns, Time Period: Sep 2005 to Mar 2019. Source: Internal
Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments. These figures pertain to performance of the model and do not in any manner indicate the returns/performance of the Scheme.The portfolios are rebalanced every March and September.
WHO SHOULD INVEST IN DSP QUANT FUND?
You should consider investing in this fund, if you –
You should consider investing in this fund, if you –
Being unemotional is important for good results
A model-based stock selection approach that always follows rules, helps reduces biases
Can remain invested for 7 years or more
Can digest: Short-term ups and downs (Lowest and highest returns over any 1 year period*: -50% and +137%)
*Rolling returns; ^Total Returns, Time Period: Sep 2005 to Mar 2019. Source: Internal
Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments. These figures pertain to performance of the model and do not in any manner indicate the returns/performance of the scheme.
You should consider investing in this fund, if you –
You should consider investing in this fund, if you –
Being unemotional is important for good results
A model-based stock selection approach that always follows rules, helps reduces biases
Can remain invested for 7 years or more
Short-term ups and downs (Lowest and highest returns over any 1 year period: -50% and +137%)
*Rolling returns; ^Total Returns, Time Period: Sep 2005 to Mar 2019. Source: Internal
Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments. These figures pertain to performance of the model and do not in any manner indicate the returns/performance of the scheme.
Open ended equity scheme investing based on a quant model theme
This open ended equity Scheme is suitable for investors who are seeking*
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Long term capital growth
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Investment in active portfolio of stocks screened, selected, weighed and rebalanced on the basis of a pre-defined fundamental factor model
* Investors should consult their financial advisers if in doubt about whether the scheme is suitable for them.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.