AlphaGrep Uses AI to Make Mutual Fund Investing Simple

AlphaGrep secures SEBI approval to launch AI-powered mutual funds in India, bringing quant-driven strategies to retail investors for the first time.

Quantitative trading firm AlphaGrep has received a licence from the Securities and Exchange Board of India (SEBI) to launch a mutual fund business in India. As a result, the company is now formally entering the country’s retail asset management sector.

AlphaGrep was founded by Mohit Mutreja and Parshant Mittal in 2010. Since then, it has built its reputation as a quantitative trading and investment management firm using data science-driven strategies.

The new mutual fund operations will be conducted through AlphaGrep Investment Management Pvt Ltd, the firm’s asset management arm. The unit currently manages around ₹2,000 crore through alternative investment funds and portfolio management services, including operations in Gujarat International Finance Tec-City (GIFT City).

Unlike traditional fund houses, AlphaGrep will not rely on human-driven stock picking. Instead, the planned schemes will use systematic methods involving mathematical modelling as well as technology-based approaches such as artificial intelligence and machine learning to construct investment portfolios.

Additionally, the fund house will focus primarily on quant-driven equity and hybrid strategies, using mathematical models, artificial intelligence and machine learning. This positions AlphaGrep as one of the few firms in India to bring institutional-grade quantitative tools directly to everyday investors.

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The mutual fund unit plans to introduce its first new fund offers (NFOs) in the coming months. These schemes are expected to focus on systematic equity strategies and hybrid portfolios constructed through predefined quantitative rules.

Moreover, these upcoming funds are expected to focus on systematic equity strategies and rules-based hybrid investment approaches designed to combine quantitative insights with diversified portfolio allocation.

The mutual fund business will be led by Bhautik Ambani, who serves as the Chief Executive Officer of AlphaGrep Investment Management. He brings years of experience in systematic trading and quantitative research to the role.

Sixteen years ago, we started with a simple belief that math and technology could navigate markets more efficiently than intuition alone. Receiving this licence is a significant step forward in that journey.
Mohit Mutreja, Co-founder and Chairman, AlphaGrep

However, despite this growth, quantitative investing still handles less than 1% of assets in India, compared to 35% in the United States. Consequently, AlphaGrep sees a clear gap it can fill.

With the Indian asset management industry projected to grow and its AUM potentially exceeding ₹100 lakh crore, AlphaGrep’s success will depend on its capacity to turn its technological advantage into reliable, accessible retail products.

Nevertheless, the road will not be easy. Established asset management companies have large distribution networks, strong customer trust, and wide product ranges, making entry difficult.

In addition, the complexities of India’s regulatory environment, possible issues reaching smaller cities, and strong competition from local firms with deep market knowledge create significant operational risks.

Even so, AlphaGrep’s technology-first approach could prove to be a differentiator in a market that is increasingly open to data-driven investing. Recently, OpenAI announced plans to reserve IPO shares specifically for retail investors.

AlphaGrep is using AI to make mutual fund investing simpler and easier for people in India. Instead of spending hours researching funds, users can get smarter suggestions and better insights through AI-powered tools. This could help new investors feel more confident while also making investing faster and less confusing for everyday users.

Disclaimer: This news is based on publicly available information. NervNow has not independently verified any claims.

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