'Our SIF is designed for long-term wealth preservation'

Model-driven vs Human-led portfolios?

We anticipate that the proportion of model-driven portfolios will rise meaningfully within passive investing and index-linked investment frameworks, as data-driven methodologies continue to enhance efficiency and scalability. However, in the realm of active and actively oriented strategies, we expect a contrasting evolution—where investment decisions will rely increasingly on qualitative judgment, market intuition and human interpretation rather than rigid model-based approaches. While quantitative tools and analytical models will continue to serve as valuable aids, the ability to generate alpha in complex, evolving market segments will remain rooted in human insight and experience.

For example, at quant, we have spent over $24 million over the years building up our set of indicators and databases.

Early SIF launch: Aim and strategy?

Our specialised investment funds (SIFs), qSIF, have been designed with a core objective of long-term wealth preservation through disciplined beta management, reduced volatility and controlled drawdowns across market cycles. These strategies aim to offer investors a more stable return profile while maintaining participation in market growth. Although the SIF category is still in its early stages in India and investor awareness is evolving, our differentiated approach has already garnered a strong and positive response from discerning investors who value risk-adjusted outcomes and consistency over short-term performance.

On low-friction investing and investor churn.

The rapid expansion of digital investing platforms has significantly enhanced accessibility, transparency and ease of execution, driving both inflows and outflows at an accelerated pace. Encouragingly, inflows continue to outpace redemptions, leading to consistent AUM growth across the industry.

SIP contribution hit a record Rs 29,361 crore with 9.25 crore active accounts, reflecting investors’ preference towards systematic, disciplined investing. At quant, we have reinforced this momentum by offering among the lowest exit loads in the industry to encourage long-term participation.

Rapid-fire questions

• One AMC you admire (not yours): Jim Simons’ Medallion Fund.
• One fund manager, past or present, you would love to have on your team: Aswath Damodaran.
• Beyond returns, one criterion you want investors to judge your AMC on: Innovation and our mathematical approach.
• If not running an AMC, what would you be doing?: Running a boutique macro research firm.

This article was originally published on October 27, 2025.