Quantitative fund

Computer Fund ( also Quantitative funds) are mutual funds whose selection is not determined by fund managers, but by computer. The selection is based on purely technical and mathematical methods: A computer monitors the investment universe based on selected criteria and filters out the large number of values, the most promising papers out.

Depending on the program takes into account the " digital Fund Manager " fundamental indicators such as balance sheet ratios and price-to- earnings ratio, or technical factors such as trend indicators. The fund manager takes usually the decisions of the computer, and verify that only plausibility. Often, the computer automatically works.

The advantage is that computer systems can handle large amounts of data on economic and company-specific information according to objective rules easily.

On the other hand, the definition leads to programmatically certain investment strategies in a lack of flexibility to respond to changing market situations.

While empirically detectable is that index funds over actively managed funds offer higher returns, on average, neither over- nor an inferiority of computer fund is empirically measurable within the Funds actively managed.

Footnotes

• Investment funds