INCOME TAX6 Sept 2026
Systems in charge: How new asset management companies are using data to tackle manager bias | Mint
New Indian mutual fund houses are shifting from traditional stock picking to data-driven rules. Their models use factors like momentum, quality, and value, and adjust weights based on market phases—rising, falling, or sideways. The aim is to avoid human bias, but real performance is untested. For investors, these funds work differently. Before investing, ask about the model and track record.
Key Statutory Highlights
- A group of new fund houses is adopting data-led approaches instead of traditional active fund management.
- These models score stocks on factors like momentum, low risk, quality, profitability, and value.
- Their real-world performance remains to be tested.
Actionable Advice for Taxpayers / Founders:If you are considering a new data-driven mutual fund, ask how the model adjusts in different market phases and check its performance record so far.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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