Aditya Birla Sun Life Quant Fund: One of the best performing quant funds

Quant investing is very popular in developed markets. The Top 10 Quant Hedge Funds in the US have around $700 billion of assets under management (source: Investment News, 2^nd February 2026). Quant investing is becoming quite popular in PMS space in India as well. In 2025, about 50% of the PMS strategies launched were quant strategies (source: Moneycontrol). Retail investors can also get exposure to quant strategies through mutual funds. Mutual funds using quantitative strategies are relatively new and fewer in number. In this article, we will review Aditya Birla Sun Life Quant Fund, a top performing fund in this category. In the last 1 year, Aditya Birla Sun Life Quant Fund delivered 21% return (compared to 13% return given by Nifty 50 TRI).

How does the quant model work?

Stock selection

Portfolio selection methodology

Active share

Sector Rotation – No sustained trend

Sectors which performed in last 6 months did not perform in last 1 to 3 years.

Source: NSE, Advisorkhoj Research, as on 31^st December 2025

Alphas generated by the model and fund in each rebalance period

You can see that after underperforming for 4 consecutive quarters (negative alphas), the fund has outperformed the benchmark (for the last 2 quarters). In the current quarter, the fund is continuing outperform the benchmark on a quarter to date basis.

Source: ABSL MF, as on 1^st January 2026

Aditya Birla Sun Life Quant Fund has outperformed the benchmark in last 1 year

The chart below shows the growth of Rs 10,000 investment Aditya Birla Sun Life Quant Fund versus its benchmark index, Nifty 200 TRI over the last 12 months. You can see that the fund outperformed the benchmark index.

Source: Advisorkhoj Research, as on 17^th February 2026

Outperformed peers

Source: Advisorkhoj Research, as on 17^th February 2026

Outperformed the benchmark in all market conditions

The chart below shows the 1 month rolling returns (rolled daily) of Aditya Birla Sun Life Quant Fund versus the benchmark index over the last 1 year. You can see that the fund outperformed the benchmark both in up markets and down markets. In market conditions, in which momentum faltered, the performance of the fund is really noteworthy.

Source: Advisorkhoj Research, as on 17^th February 2026

Superior risk adjusted returns

Market capture ratio is a measure of the performance of a mutual fund scheme relative to its benchmark index in rising and falling markets. Up Market Capture Ratio tells us how much percentage of the market’s upside was captured by the fund, while Down Market Capture Ratio tells us how much percentage of the market’s downside was arrested by the fund. Up-Market Capture Ratio and Down-Market Capture ratio can give us a sense of risk adjusted returns. We looked at the market capture ratios of Aditya Birla Sun Life Quant Fund over the last 1 year.

The Up Market Capture Ratio of Aditya Birla Sun Life Quant Fund was 106% which implies that if the benchmark index went up by 1% in a month, then the scheme’s Net Asset Value (NAV) went up by 1.06%. The Down Market Capture Ratio of the fund was only 86% which implies that if the benchmark index went down by 1% in a month, then the scheme’s Net Asset Value (NAV) went down by 0.86% only. The market capture ratios of Aditya Birla Sun Life Quant Fund are a clear indication of the potential of the fund to give superior risk adjusted returns of the fund.

Salient features of Aditya Birla Sun Life Quant Fund

• High Active Share compared to the benchmark: The Fund will be sector and benchmark agnostic with prospect of high active share.


• Portfolio Type: Blend of growth, momentum, and low volatility with a quality bias.


• Size: 40 -50 stocks that are reasonably equal weighted with maximum weight not exceeding 5%.


• Dynamic Rebalancing: Framework used to harvest signals for rebalancing (mostly quarterly). Maximum period between 2 rebalances will not be more than 120 trading days.


• Cash Levels: Fully invested at all times, minimal cash for redemption requirements.


• Sell Discipline: Machine based sell discipline. No human bias. If the stock hits the signals, it moves out of the fund


• Flexibility: Proprietary signal provides flexibility to execute.


• Blend of both worlds: Man, and machine.

Why invest in of Aditya Birla Sun Life Quant Fund?

• Large & Midcap diversified fund (35-45 stocks)


• Rule based - adapted to Indian conditions conservative portfolio


• Multi factor portfolio - harvests momentum factor in a very high-quality universe, weighed by low volatility


• Differentiated portfolios - not a “me too” large and midcap fund


• High active share


• Fund of themes - gets in and gets out of themes in a rule - based manner

Who may find Aditya Birla Sun Life Quant Fund suitable?

• Investors seeking capital appreciation over long investment horizon


• Investors who want to rely on rule based, quantitative / algorithmic approach on investing for a portion of their portfolio


• Investors with very high risk appetites


• Investors with minimum 5 year investment horizon

Investors should consult with their financial advisors and mutual fund distributors if Aditya Birla Sun Life Quant Fund is suitable for their risk appetite and investment needs.