Eliminating Human Error !!!


Technology has become central to our lives. It is also increasingly driving the way we invest. Quant funds use algorithmic, or algo, trading, in which computer software takes buy/sell decisions on the basis of preset formulae after extensive data crunching.

The process involves use of advanced mathematical models-based on parameters such as price movement, volume, earnings, financial ratios and growth-to take decisions in the market.

Quant funds have a data-driven approach. Typically, there is a model that automatically selects stocks based on various data inputs that may or may not include fundamental data.

Quant funds are at a nascent stage in India. Quantitative funds work best when you have a large liquid market, particularly for long-only quantitative investing. India has about 100 stocks with large trading volumes. This will increase as liquidity improves.