Secret Behind an Indian Quant Fund Outperforming Peers in 2020
- Nippon quant fund dropped 15% this year while Sensex fell 27%
- Emphasis on growth and quality while picking stocks helps fund
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India’s oldest equity quant fund that offered lackluster returns for years outperformed most of its peers in 2020 amid the decade’s worst market rout. The secret lies in its investment model.
The 12-year-old Nippon India Quant fund, which is also among the nation’s smallest, dropped about 15% this year, compared to a 27% decline for the benchmark S&P BSE Sensex. When India shut down its economy to check the spread of coronavirus, the fund fared better than nine out of 10 equity mutual fund plans, while the sector as a whole clocked an average loss of about 19%, data compiled by Bloomberg shows.