India’s newest mutual fund: Bhautik Ambani wants to bring global quant power to retail investors

Edited excerpts from a chat:

AlphaGrep has spent 16 years as a powerhouse in global quantitative and algorithmic trading. What was the internal “tipping point” that made you decide it was time to bring this institutional-grade rigor to the Indian retail mutual fund investor?

The tipping point was recognising a clear gap or whitespace. Globally, investing has become increasingly driven by algorithms, models, and AI-led frameworks, while in India, retail portfolios are still largely discretionary. With participation scaling rapidly, it felt like the right time to bring institutional-grade, systematic investing into a mutual fund format.

The Indian MF space is dominated by large, legacy players with massive distribution networks. As a new entrant, how tough is it going to be competing with big names like BlackRock on one hand and bank-backed fund houses on the other side?

Distribution scale is an advantage, but outcomes are driven by process. We’re not trying to out-distribute incumbents—we’re focused on building differentiated, model-driven portfolios. If the process is robust and consistent, distribution tends to follow.

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To begin your journey in the mutual fund industry, which scheme would you be launching first?

Subject to regulatory approvals, we are looking at a dynamic multi-asset allocation strategy—allocating across equity, debt, and commodities using algorithms and models. The idea is to build a portfolio that adapts to changing market conditions rather than staying static.

Many argue that the industry is polarizing between low-cost passive index funds and high-conviction active management. Where does Alpha Grep fit in this spectrum?

We operate in the active systematic space. Passive is rules-based but static; traditional active is flexible but discretionary. Our approach uses algorithms, AI, and models to take active calls within a disciplined, repeatable framework.

In an increasingly efficient market, generating consistent alpha is becoming harder. How does a quantitative approach improve the probability of beating the benchmark compared to traditional stock-picking methods?

Alpha is getting harder, especially in efficient segments. A systematic approach improves the odds by removing behavioural biases, processing large datasets, and enforcing consistency. It’s about compounding multiple small, disciplined decisions—not relying on a few big calls.

What does success look like for Alpha Grep Mutual Fund in the next 3–5 years? Is the goal to dominate market share, or to pioneer a specific category of “quant-first” investing in India?

Success is building credibility for model-driven investing in India. If investors start seeing algorithms, AI, and systematic strategies as a core allocation—not a niche—that’s success. Scale will follow trust.

We are seeing a massive surge in AI adoption across finance. Do you believe we are reaching a point where “non-quant” funds will struggle to compete in the long run?

It’s less about replacement and more about evolution. Just as businesses can’t ignore AI today, investing too is becoming more data-driven. Funds that don’t integrate algorithms and models may find it harder to deliver consistency over time.

As someone who looks at data and signals, how do you view the current state of the Indian equity markets? What are your models telling you?

Markets are being driven as much by flows and liquidity as by fundamentals. Our proprietary asset allocation model is currently at ~50% of its peak equity exposure, reflecting a more balanced stance. The key variable ahead is earnings—higher oil and commodity prices, along with potential supply-side pressures, could impact margins. Our approach is to adapt dynamically as data evolves, with risk management at the core.