Quant Fund Market Size, Share, Growth and Industry Analysis, By Type (Trend Following Funds, Countertrend Strategies, Statistical Arbitrage Funds, Convertible Arbitrage, Fixed Income Arbitrage, Commodity Spread Trades and Others), By Application (Direct Sales and Indirect Sales) and Regional Forecast to 2033

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QUANT FUND MARKET OVERVIEW

The global quant fund market was valued at USD 0.5 billion in 2024 and is expected to grow to USD 0.53 billion in 2025, reaching USD 0.9 billion by 2033, with a projected CAGR of 6.5% from 2025 to 2033.

Using of data analysis and algorithms to invest and or to make investment decisions comes under Quant fund. And the market responsible for the growth is called quant fund market. Since they are based on mathematical model, that fund transmission has become consistent over the course of time. The main reason for the growth of quant fund market is the use of Artificial intelligence (AI) in the recent years.

LATEST TRENDS

Modern Technology Fuelling the Market Growth

The use of modern technologies such as automation and artificial intelligence has resulted in the quant fund market gaining momentum in the recent years. As these modern technologies provide customized solutions, flexible pricing of the models and also to achieve more results with lesser resources. These factors have helped the quant market growth.

GLOBAL CRISIS IMPACTING THE MARKET

US TARIFF IMPACT

The impact of tariff has a mixed effect on the quant fund market. Implementation of tariff causes volatility and uncertainty in the market. This could severely affect the developing countries market that depends mostly on exports from other countries. It can also cause supply chain disruption. However, quant fund market can make use of the volatility by taking advantage of the discrepancies in the price that are caused due to tariff on various markets and assets. Thus, tariff is known to cause mixed effect on the quant fund market.

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QUANT FUND MARKET SEGMENTATION

By Type

Based on type, the quant fund market is classified into trend following funds, counter trend strategies, statistical arbitrage funds, convertible arbitrage, fixed income arbitrage and commodity spread trades.

• Trend Following Funds

Funds invested based on the latest trends in the market and potentially seeking profits on each investment are termed as a trend following funds. This type focuses on the overall market trends rather than the market price.

The trend following funds market is a rapidly growing market as the current generation focuses more on trends. This type of trend following funds can easily adapt to modern changes and thus it is easy to follow and invest as it attracts the investors easily. This has massively helped with the market growth. This method is the has the largest market share and it is growing with as a CAGR of 13.02% during the forecast period.

• Counter Trend Strategies

As the name suggests, in this method the investment is made in the opposite direction of the market trend. This kind of investment can be found in stocks, currencies and commodities. This concept is based on assumption that the market value and asset prices will revert back even if it is presently moving in a different direction.

This method involves understanding the market trends, volatility and market sentiments in depth to make the informed counter investment. This market is vast and fluctuating constantly.

• Statistical Arbitrage Funds

In this method the investor remains neutral to the market trends and dynamics as a result they do not face any risks directly due to investing. This method predicts the mispricing in the market with the help of quantitative models. It can also predict the pricing movements. Statistical arbitrage is a high frequency trading type but with shorter position periods.

• Convertible Arbitrage

This uses a person’s preferred shares or convertible bonds which can be easily converted into common stocks as the name suggests. The advantage of the convertible arbitrage is that it can generate consistent returns regardless of the increase or decrease in the market growth.

• Fixed Income Arbitrage

The fixed income arbitrage usually capitalizes on the mispricing which occur in the market temporarily. This strategy method is also market neutral just like statistical arbitrage funds. This method involves buying and selling of bonds, notes and mortgages that are backed by securities, specifically by fixed income securities. This method can generate consistent return irrespective of the market conditions.

• Commodity Spread Trades

  This method involves buying and selling of same or different commodities. It also involves buying and selling of same or different commodities at a different time. This method involves trading not just commodities but also contracts as well. Commodity spread trades are used by industries such as agriculture, energy and gas and also by hedge funds.

By Application

Based on application, the quant fund market is classified into direct sales and indirect sales

• Direct Sales

When the funds are invested directly by the investors then it is called as direct sales in quant funds. Usually the funds in the direct sales are invested in the fund website, online platforms or directly to the investors. By using the direct sales method one can reduce the cost spent on investing as there will be no intermediate fees.

Since it is a direct method the investors and fund managers can have direct relationship without the involvement of a third party. Funds that comes under this category are the pension funds, family business funds and endowments and so on.

• Indirect Sales

When the funds are sold to the investors with the help of an intermediate then it is called as an indirect sale in quant fund. Some form of the intermediate help in the indirect sale in quant fund include financial advisors, brokerage firms, investments consultants and so on.

The benefits of indirect funds include border reach through intermediate help, financial advices for the advisors and consultants and expert guidance while investing. Due to these factors this method is widely preferred.

MARKET DYNAMICS

Market dynamics includes driving and restraining factor, opportunities and challenges stating the market conditions.

Driving Factors

Technological Advancement Driving the Quant Fund Market Growth

Use of modern technologies has helped the quant fund market to transition into digitalization. Big data analysis provides insights to industry and market trends, machine learning helps with investment decisions and computing helps with complex data analysis faster. Due to these feature the quant fund market has gained momentum and is growing rapidly in the recent years.

Market Volatility Propelling the Market Growth

Quant fund thrives on market volatility and provides new opportunities for the market growth. Discrepancies in prices are the key factor for the market growth in the quant fund market. When this happens the quant funds can employ risk management strategies and tasks to improve the market growth.

Restraning Factor

Liquidity Risks Restrain the Market Growth

Sometimes when there is a market stress it will be hard for the investors to sell their assets as they become liquefied making it impossible to sell or buy. This may pose as a restraining factor for the market growth.

Globalization of Quant Fund Opening New Opportunities

Opportunity

Globalization of the quant fund has led to increased market integration, diversification and provided a broader access to markets, assets and investments. Due to these factors the globalization of quant fund has opened the door to new opportunities.

Cybersecurity Risks Pose as a Challenge for the Market Growth

Challenge

Quant funds are prone to cyber-attacks which can lead to leakage of sensitive data and even personal information. This prevents the investors from believing and even using Quant funds. This pose as a great threat for the development and growth of the quants fund market.

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QUANT FUND MARKET REGIONAL INSIGHT

• North America (Us)

The US quant fund market is having a significant growth mainly due to implementation of modern technologies. The US is considered to be the dominant region in the quant fund market. Currently the market is valued at 15 billion USD and this is expected to have an upward trajectory in the coming years as the. The US quant funds rapid development is their data driven approaches.

• Europe

The Europe quant fund market share is considered as a crucial share globally. The growth is mainly due to strong influence from the hedge funds, financial institutions and assets management firms. The key players in the European market include Switzerland, UK and Germany.

To improve the performance, the European quant funds are implementing machine learning and AI. Technological development has also played as key role in the quant fund market growth.

• Asia

The Asian quant fund is dominating the global market and outperforming the US and Europe market. The driving factor is the ned for data driven investments in the Asian market. The quant fund strategies the Asian market follow include trend following, neutral market and statistical arbitrage.

China is the key player in the Asia quant fund market with Singapore and Hong Kong leading the market growth as well.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

The key industry players are responsible for the growth of the market in the particular region. They come up new strategies to boost the market globally. They take care of the distribution and supply chain of the product. They also invest in the research and development and come up with latest trends to promote the market globally.

List Of Quant Fund Companies

• Bridgewater Associates (US)
• Renaissance Technologies (US)
• Citadel (US)
• The D. E. Shaw Group (US)
• Winton (UK)
• Man Group (UK)
• Two Sigma (US)
• Soros Fund Management (US)
• Ubiquant Investment (China)
• AQR Capital Management (US)
• Millennium Management (US)
• Minghong Investment (China)
• TianYan Capital (China)
• Acadian Asset Management (US)
• Paulson & Co. (US)

KEY INDUSTRY DEVELOPMENT

Two groups namely Aditya Birla and its New Fund Offer and Sun Life Quant raised funds from their investors which was roughly around Rs2416 crores. It is an open equity plan with a focus on investment based on quant fund principles

REPORT COVERAGE

This report covers the basis of the quant fund the its market in the global scale. It describes briefly the latest trends that boost the market growth and the impact of US tariff on the global scale. This report also briefly covers the segmentation of the quant fund market on the basis of type and application and their contribution to the market growth.

The driving factors and opportunities that fuel the market growth and the restraining factors and challenges that impact the growth of the quant fund market. The regional insights and market growth in each region. Finally, it also covers the key industry players and key development in the quant fund market.