New Indian Fund Houses Adopt 400-Signal Models to Cut Manager Bias
Updated
Updated · Mint · Sep 6
New Indian Fund Houses Adopt 400-Signal Models to Cut Manager Bias
1 articles · Updated · Mint · Sep 6
Summary
55 Indian fund houses now run more than 1,900 open-ended schemes, and newer entrants are trying to stand out by shifting stock selection from star managers to rules-based, data-led models.
500-plus active equity funds still dominate the market, but firms such as Capitalmind, Samco and NJ are using factor frameworks that automatically tilt among momentum, quality, value and low-risk stocks as market regimes change.
Jio BlackRock says it tracks about 400 signals per Indian stock and deploys 30 to 50 metrics per fund, adding alternative inputs such as job postings, news and online-sales feeds to traditional valuation and sentiment data.
AlphaGrep also blends multi-factor models with analyst revisions, ownership flows and call transcripts, though some managers still allow limited discretion for governance issues or concentration risks not yet visible in the data.
Back-tested strategies have worked globally, advisers say, but their durability through full Indian market cycles remains unproven.