The difference between the fund and the traditional fund is quantified by manual decision-making. The role of people in it is to build an investment decision-making system that contains enough information and can effectively process the information. Its timing and stock selection decisions are based on the information processing results of the investment decision-making system. The typical quantization input is an input represented by Simmons. The unique decision-making process of quantitative fund determines that the influence of human factors in its decision-making process is very small, which can prevent investors from distorting the information they face and overreacting. From this perspective, the significance of the existence of quantitative funds is positive.

Disadvantages of quantitative fund However, quantitative fund itself has some shortcomings. Firstly, from the perspective of model structure, the structural similarity of fund model (such as valuation factor, growth factor, momentum factor, reversal factor, etc.) is quantified. Is the most common and frequently introduced model factor) will directly affect the effectiveness and liquidity of the model. Secondly, from the specific operation of the model, the quantitative model is constructed according to historical data, so its ability to absorb new information is relatively slow. Once the external environment changes or some major events, such as fundamental changes, its effectiveness may be affected.