'Fund manager-led strategies crucial for mid and small caps'

Model-driven vs human-led portfolios? Model-driven strategies grow faster, but manager-led approaches remain vital, especially in emerging markets. In India, quantitative models are reshaping portfolios. Their rise will be fuelled by better data, evolving SEBI rules, demand for transparent products, tech-savvy investors and advances in AI and fintech. Still, model-driven portfolios form under 2 per cent of open-end equity assets. Growth is likely, given the low base and rising focus. Fund manager-led strategies remain crucial, especially in mid and small caps, where information gaps persist. Here, human insight drives alpha through deep research and market bias

This article was originally published on October 27, 2025.