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Quant Funds and Its Implications in India

Ram Girdhar, Assistant Professor, Department of Management

Kalinga University, Raipur C.G.


Quantitative funds, also known as quant funds, are investment funds that utilize computer-based quantitative models and algorithms to make trading decisions. These funds rely heavily on mathematical and statistical models to identify and exploit trading opportunities in financial markets. Quant funds use sophisticated algorithms and quantitative models to analyse vast amounts of data and identify patterns or anomalies in the market. This can lead to more efficient and faster trading decisions, reducing the time and effort required for traditional investment strategies.

Quant funds heavily rely on mathematical and statistical models to make investment decisions. These models are developed based on historical data and assumptions. If the models fail to capture key market dynamics or if the underlying assumptions are flawed, the fund’s performance can suffer. The effectiveness of quant funds depends on the quality and availability of data. If the data used in the models is incomplete, inaccurate, or not representative of current market conditions, it can lead to incorrect investment decisions and subpar performance.

It is important to note that the implications of quant funds in India are subject to ongoing developments in technology, regulation, and market dynamics. Investors and regulators alike need to adapt to the evolving landscape and ensure responsible and sustainable use of quantitative strategies in the Indian financial markets.


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Blake, C. R., & Morey, M. R. (2000). Morningstar ratings and mutual fund performance.TheJournal of Financial and Quantitative Analysis,35(3), 451–483. doi:10.2307/2676213

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