The October Securities & Asset Management New Edge Fintech Fund seeks to capitalize on early to growth-stage investment opportunities within the SELF (Sports, Entertainment, Lifestyle, and Finance) sectors. The fund uses a data-driven approach, utilizing advanced Artificial Intelligence (AI) and Machine Learning (ML) technologies to analyze market trends, scalability, and risk management. By integrating AI and ML research, the fund is strategically positioned to invest in innovative businesses that demonstrate the potential for scalable and sustainable growth, delivering compelling risk-adjusted returns. The fund’s objective is to achieve capital appreciation by supporting high-growth startups that leverage technology, data analytics, and innovative models. It invests primarily in unlisted equity, quasi-equity, debt securities, and partnership interests, with more than 51% of investments in unlisted securities. This enables the fund to tap into early-stage opportunities with exponential growth potential.
AI and ML tools make the fund’s investment process more data-driven and precise, offering deeper insights into market patterns, growth potential, and financial disruptions. These tools help predict growth trajectories, identify optimal entry/exit points, and mitigate risks, ensuring informed and objective decision-making. By reducing human biases, AI/ML enhances investment choices, ensuring alignment with the fund’s objective of generating optimal risk-adjusted returns.
The SELF sectors present vast opportunities for technological disruption. The fund backs companies at the forefront of innovation, focusing on those that demonstrate scalable growth without proportional cost increases. AI/ML refines company selection by analyzing market data to identify trends and businesses capable of disrupting traditional models.
The fund follows a collaborative investment model, partnering with other funds, corporates, and venture capital firms. This collaboration enhances early-stage financing and facilitates potential exits through strategic sales or future fundraising rounds. AI/ML insights strengthen this collaborative approach by offering data-driven recommendations, projections, and predictive analytics. This ensures the portfolio companies are well-prepared for market exits and future financing.
The fund aims to generate risk-adjusted returns over a long-term horizon by identifying companies with significant growth potential. Flexibility is built into the investment strategy, allowing the fund to adapt to evolving market conditions and seize emerging opportunities. AI/ML tools provide real-time insights, helping to optimize portfolio risk management, continuously monitor performance, and adjust strategies accordingly.
AI/ML research enhances decision-making across all five stages of the investment process:
The fund is managed by October Securities & Asset Management Private Limited, with oversight of operations and compliance with SEBI regulations. AI/ML tools enhance governance by providing real-time analytics and risk assessments, allowing for more responsive and dynamic management. This ensures that the fund remains agile, adapting quickly to market shifts while adhering to its strategic objectives.
The fund is aimed at high-net-worth individuals and institutional investors, both domestic and international, who are willing to accept the risks of investing in an AI/ML-driven AIF. A minimum capital commitment of ₹1 crore is required. Investors are expected to understand the complexities of AI-driven investment strategies and early-stage risks.
Investing in the October Securities & Asset Management New Edge Fintech Fund involves market volatility, liquidity risks, regulatory changes, and sector-specific risks. However, AI/ML research helps mitigate these risks by providing advanced insights and predictive analytics. Investors should review all risk factors thoroughly before committing, as AI/ML cannot eliminate the inherent risks associated with early-stage investments.
The October Securities & Asset Management New Edge Fintech Fund aims to capitalize on high-growth, innovative companies within the SELF sectors, using AI and ML to enhance decision-making and risk management. With a focus on risk-adjusted returns, collaboration, and scalability, the fund delivers value by tapping into disruptive businesses in rapidly growing markets.
