Prabhudas Lilladher PMS has launched AQUA (Adaptive, Quantitativ, Unbiased and Alpha) - an equity PMS strategy, which uses quantitative methods with fundamental principles.

It aims to provide investors with a style-, sector-, size- and benchmark-agnostic, flexi-cap, equity portfolio that dynamically adapts to changing market cycles and investment regimes.

Soft launched in June, the minimum investment in AQUA strategy is ₹50 lakh and currently has an asset under management of ₹53 crore.

The investment strategy will have 30 stocks in its portfolio and will be reviewed every two months for rebalancing.

AQUA relies on a dynamic multi-factor approach that blends fundamentals, valuations, macros, liquidity, sector, risk and technical analytics to construct a diversified portfolio of select stocks from the top-500 listed companies.

The in-house software processes vast amount of data, identifying patterns and relationships that might be otherwise overlooked.

Siddharth Vora, Head of Investment Strategy and Fund Manager – PMS, Prabhudas Lilladher, said quantitative investing has a more sophisticated investment approach as it uses data and a rigorously-tested scientific approach to drive investment decisions.

The discipline of quantitative methods ensure repeatable investment outcomes for sustainable outperformance for investors, he added.

The AQUA strategy has delivered a return of 15 per cent in the last two months against benchmark NSE 500 return of 7 per cent, thus delivering an alpha of 8 per cent.