Ashika Investment Managers unveils SmartAlpha Fund amid growing demand for quant AIFs

Ashika Investment Managers has launched the SmartAlpha Fund, a new open-ended Category III Alternative Investment Fund (AIF) that uses a data-driven, systematic strategy to identify market opportunities across cycles. The fund, which has received regulatory approval from the Securities and Exchange Board of India (Sebi), is now open for subscription and marks a significant expansion of Ashika’s alternative asset management platform.

Designed as a quantitative, rules-based strategy, the SmartAlpha Fund is built on what the firm calls a proprietary “Six Bucket Approach”. This framework draws on academically and empirically validated behavioural patterns observed across global markets, seeking to capture investment opportunities in a consistent and methodical way rather than relying on discretionary calls.

At the core of the strategy is a multi-layered process that blends traditional fundamental analysis with quantitative signals. The fund focuses on changes in earnings expectations, valuation metrics, and momentum trends, while also tracking the activity of strategic investors to gauge shifts in market sentiment. In addition, it incorporates behavioural finance insights such as trend-following and the identification of fundamentally strong companies that may be temporarily mispriced due to market overreaction.

According to Ashika Investment Managers, the objective is to create a system that can perform across different market environments by reducing dependence on any single factor or style of investing. By integrating multiple validated signals into a unified framework, the fund aims to deliver more stable risk-adjusted returns over time.

“The Sebi approval of the SmartAlpha Fund marks an important milestone in our alternative asset management journey,” said Ajay Arora, Co-CEO of Ashika Investment Managers. “As India’s alternatives ecosystem matures, systematic and data-driven strategies are becoming increasingly relevant, complementing traditional investment approaches.”

Himadri Roy, Head of Quantitative Fund Management and the fund manager for SmartAlpha, said the strategy is designed to bring greater discipline to portfolio construction. “By combining multiple dynamic factors within a structured framework, we aim to offer investors a consistent way of engaging with market behaviour rather than reacting to short-term noise,” he said.

The fund launch comes close on the heels of a broader strategic push by the Ashika Group into asset management. Last week, the group announced that it had received in-principle approval from Sebi to set up a mutual fund business, allowing it to move ahead with establishing an asset management company and preparing new schemes, subject to final regulatory clearances.

Ashika Group’s entry into mutual funds builds on its presence across capital markets and financial services, including retail and institutional broking, investment banking, research advisory, global family office services, alternative assets and private equity.

“The launch of Ashika Mutual Fund is a natural extension of our vision to contribute meaningfully to India’s evolving asset management ecosystem,” said Pawan Jain, Chairman and Managing Director of Ashika Group, adding that the proposed fund house will offer a range of schemes tailored to diverse investor needs.