I am not managing the fund, the model is. There is no fund manger required for a fund like this.
You’d be handing your cash over to a mathematical model running on a computer if you decide to invest in Lotus India’s Agile Fund — a quant fund currently doing its NFO (new fund offer).
So how much confidence can you place on the [secret] mathematical model to act in your best (i.e. profit making) interests?
We have back tested this fund down to 11.5 years and this has performed extremely well in a bear market as well as in bull markets.
Pretty confident eh? But dig around a bit and you’ll discover that:
The model used by the fund relies extensively on past data which may not necessarily be the best indicator of the future.
Finally, what does AGILE stand for? Alpha Generated from Industry Leaders Fund, where Alpha is a measure of the fund’s performance as against its benchmark index (which is the S&P CNX Nifty Index) and Industry Leaders is a diplomatic term for being vague.
This fund will redefine the product suite available in the market and will provide investors a model-based alternative to the existing value- and growth-based investing philosophies. Based on the extensive back-testing done, we believe that this offers an attractive additional asset allocation opportunity to equity mutual fund investors.
If you believe that financial jargon, this quant fund’s a great way to play Diwali, literally, with your hard earned cash.