Inquant launches Smart Equity, a 25-stock quantitative equity strategy
The strategy combines financial quality filters and momentum models, with its investment model back-tested against the NIFTY 200 TRI.
Inquant Systematic Investment Managers LLP, an investment management firm, has launched Inquant Smart Equity, a long-only quantitative equity strategy. It uses a systematic model to build a concentrated portfolio of 25 stocks selected from India's top 250 companies by market capitalisation.
As an investment management firm, Inquant focuses on quantitative and systematic investment strategies, using data-driven models and defined investment parameters to guide investment decisions.
The Smart Equity strategy is the culmination of over 18 months of research and model development by Inquant's investment team. It combines financial quality filters with established momentum models to identify companies with sound financial characteristics and favourable price trends. Stock selection follows a systematic, non-discretionary process guided by defined model parameters rather than individual investment calls.
The model has been back-tested on historical market data from April 2012 to September 2026, using the NIFTY 200 TRI as its benchmark. The back-testing indicates the model's potential to generate alpha relative to the benchmark. These results are based on historical model simulations and do not represent the live performance of the newly launched strategy.
Portfolio construction takes into account liquidity and diversification, with sector exposures monitored relative to the benchmark. Risk management is also incorporated into the investment process.
Commenting on the launch, Saurabh Saraswat, Managing Partner & Fund Manager, Inquant Systematic Investment Managers LLP, said, “Quantitative investing is about bringing greater discipline and consistency to investment decisions. With Smart Equity, we have combined financial quality filters with momentum to create a systematic approach to stock selection. The objective is to identify businesses with sound financial characteristics and favourable market trends, while keeping portfolio construction and risk management central to the investment process.”
Pranshu Chugh, Managing Partner & Fund Manager, Inquant Systematic Investment Managers LLP, added, “Indian equity markets offer a wide investment universe, but navigating it requires a consistent framework for evaluating opportunities and managing risk. We believe systematic investing can help investors approach equity markets with greater discipline by reducing dependence on subjective decisions and following a process based on defined investment rules. Smart Equity extends our effort to bring research-led quantitative strategies to investors.”
The launch extends Inquant's systematic investment approach into long-only equities, building on its experience with Debt Plus, launched in September 2022. Through Smart Equity, the firm is expanding its quantitative investment approach into another segment of the Indian markets, with a focus on research-led stock selection and disciplined portfolio construction.
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