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The above article provides some interesting tibits on why Indian quant funds have not performed well compared to the US/China counterparts. But it also brings hopes about the future growth of this nascent industry in the world's most populous country.
Low interest, strict regulations and the success of active stock-picking are scuppering the growth of quants in the world’s most populous nation. Quant assets account for less than 1% of the total in India, compared with around 35% in the US, according to Siddharth Vora, a portfolio manager at Prabhudas Lilladher. Assets managed have declined by a fifth since the end of 2021, according to data provider ACE MF and investment adviser Fisdom.
“The quant segment on the product manufacturing side is nascent, and investor maturity in terms of understanding quant as a concept is also reasonably low,” said Nirav Karkera, head of research at Fisdom. Mutual funds with retail-friendly products dominate the space, he added.
There are only seven quant funds in India and they managed just above $300 million as of the end of July, according to data compiled by Fisdom.
Low interest, strict regulations and the success of active stock-picking are scuppering the growth of quants in the world’s most populous nation. Quant assets account for less than 1% of the total in India, compared with around 35% in the US, according to Siddharth Vora, a portfolio manager at Prabhudas Lilladher. Assets managed have declined by a fifth since the end of 2021, according to data provider ACE MF and investment adviser Fisdom.
“The quant segment on the product manufacturing side is nascent, and investor maturity in terms of understanding quant as a concept is also reasonably low,” said Nirav Karkera, head of research at Fisdom. Mutual funds with retail-friendly products dominate the space, he added.
There are only seven quant funds in India and they managed just above $300 million as of the end of July, according to data compiled by Fisdom.