L&T Mutual Fund building use of trading algos

With direct market access growing in popularity in India, Mumbai-based L&T Mutual Fund has built up its use of algorithms to the extent that they account for more than half of its equity trading. “We use DMA for stocks that show good volume and liquidity,” says Praveen Ayathan, chief equity trader at the firm, with $3.01 billion in AUM, 25% of which is in equities. “We benefit from paying lower commissions when executing via DMA, but we are also assuming execution risk, beca…