The Rise of Quant Investing in India: A Beginner’s Guide

Quantitative (quant) investing, once reserved for Wall Street hedge funds and institutional investors, is now transforming how Indian retail investors make decisions. Over the last few years, algorithm-driven strategies, data democratisation, and powerful platforms like sharpely have made quant investing more accessible than ever.

What Is Quant Investing?

Quant investing is the use of data, algorithms, and mathematical models to make investment decisions. Instead of depending on gut feeling or external advice, quant investors rely on historical data, statistical models, and rule-based systems to identify opportunities in the market.

Example:

• A traditional investor might buy a stock because they heard positive news.
• A quant investor screens 500+ NSE stocks for low P/E, high ROE, and positive price momentum — and only invests in stocks that meet all three conditions.

With sharpely’s Strategy Builder, you can apply similar techniques in just a few clicks, no coding required.

Why Quant Strategies Are Gaining Popularity in India

1. Democratisation of Data

Earlier, institutional investors had exclusive access to detailed stock and mutual fund data. Today, platforms like sharpely provide 400+ stock metrics and comprehensive insights to every investor.

2. Rise of Digital Investing Platforms

Low-cost brokers and advanced APIs now allow retail investors to analyze, backtest, and even automate their investment strategies seamlessly.

3. Regulatory Push

SEBI-approved quant-based mutual funds are gaining traction, indicating both investor demand and regulatory confidence in data-driven strategies.

4. Global Influence on Indian Markets

Globally, quant funds manage over 40% of equity trading volumes. Dalal Street is quickly adopting similar approaches as investors demand better tools and smarter strategies.

How Quant Strategies Actually Work

Step 1: Define a Hypothesis

For example:

"Low P/E + High ROE companies outperform the Nifty 500."

Step 2: Gather Data

Use sharpely’s stock screener to filter stocks with P/E < 20, ROE > 15% and one-year return > Benchmark return.

Step 3: Backtest Your Strategy

Check how this rule-based portfolio performed over the past 5 or 10 years using sharpely’s backtesting engine.

Step 4: Automate Execution

Push your strategy live by linking your broker account to sharpely’s Strategy Builder!

Who Should Consider Quant Investing

1) DIY Investors → Want to avoid tips-based decisions.

2) Retail Traders → Seek rule-based entry/exit signals.

3) MF & ETF Investors → Use quant filters to identify outperformers.

4) Busy Professionals → Automate strategies without daily monitoring.

Advantages & Limitations of Quant Investing

Advantages

• Removes emotional biases from investing.
• Handles massive datasets instantly.
• Enables strategy automation.
• Improves consistency and discipline.

Limitations

• Backtested results ≠ guaranteed future returns.
• Overfitting models can mislead investors.
• Requires understanding of risk and drawdowns.

How sharpely Makes Quant Investing Accessible

At sharpely, we believe quant investing should be for everyone. Our platform brings institutional-grade tools to retail investors, including:

• Stock Screener → 400+ metrics for smarter stock selection.
• Factor Model → Combine factors like value, quality, and momentum seamlessly.
• Backtesting Engine → Test strategies on historical data before deploying capital.
• Strategy Builder → Test and paper trade your strategy in the live market with our fully automated strategy builder.
• Portfolio Analyser → With WealthView, track sector exposure, risk levels, and performance at a glance.

With sharpely, you can build, test, and execute your quant strategies without writing a single line of code.

Conclusion

Quant investing is no longer limited to hedge funds and institutions — it’s reshaping retail investing in India. By combining data, technology, and automation, platforms like sharpely are helping investors make smarter, faster, and more confident decisions.

Ready to explore quant investing?

Start building your first quant strategy on sharpely with our strategy builder.

FAQs

Q1. What is quant investing, and how is it different from traditional investing?

Ans. Quant investing uses data, models, and rules to make decisions, unlike traditional investing, which often relies on manual research and gut feeling.

Q2. Do I need coding skills to start quant investing?

Ans. Not at all. With sharpely, you can build, test, and execute strategies visually, without writing any code.

Q3. Can quant strategies guarantee profits?

Ans. No. Quant investing helps you make better-informed decisions, but markets always involve risk.