Liquid funds come under the category of debt schemes offered by Mutual Funds. The basic objective of a liquid fund is to manage the short term cash surplus of investors and provide optimal returns with moderate levels of risk and high liquidity. Liquid Funds generate income primarily through interest accrual by investing in money market instruments like Commercial Papers, Certificate of Deposits, CBLO/ Repos and in short term debt instruments of corporates and NBFCs.

• Liquid funds are ideal tools for managing surplus cash.
• The liquidity is very high – redemptions can be available on a next day (T+1 business day) basis.
• Liquid funds can deliver better yields than savings and fixed deposits. Liquid funds offers returns comparable to fixed deposits and retains the liquidity of savings accounts
• You can invest in liquid funds even for a day. Individuals can sweep their monthly salary into a liquid fund and then keep redeeming to meet the usual expenses. Often, savings accounts earn only a miniscule amount of interest. Money can be put to better use by investing in a liquid fund

The fund house follows a direct-to-investor approach and does not use distribution channels. There are no distribution commissions resulting in lower costs to the investor – Quantum Liquid fund charges a maximum expense ratio of 0.45% p.a.

The market risk is lower. In the Quantum Liquid Fund, the proportion of assets which can move according to market movements (Mark-to-Market component) is restricted to 10.0% of the schemes assets. This reduces the volatility in NAV and ensures stable performance. (Market risk refers to the risk that the value of investment would decrease due to movements in market factors.)

Lower Credit Risk. The Quantum Liquid Fund invests a minimum of 80.0% of its assets in instruments which are rated as AAA or equivalents (indicating highest safety of timely payment of interest and principal) by a SEBI registered credit rating agency. This reduces the credit risk involved. (Credit risk refers to the risk of loss due to default by a debtor/borrower)

Quantum Liquid Fund also follows a disciplined research and investment process to unearth the most favourable investments to optimize the returns

Almost anyone can invest in liquid funds.

Corporates, HUFs, partnership firms, trusts and educational institutions with surplus cash in their current accounts have found liquid funds an ideal way to optimize their returns without sacrificing liquidity.

Individuals with surplus cash in their savings accounts can also use liquid funds effectively - sweep in excess salary income into a liquid fund and redeem it as and when required.

NRIs (except those from Canada and the USA) and FIIs can also invest in liquid funds.

Under normal circumstances, the asset allocation shall be as follows:

Instrument	Allocation (as % of Net Assets)	Risk Profile
Money Market and other short term debt instruments having maximum repricing tenor of one year	100% (Out of which mark to market component of the scheme’s net assets on a weekly average basis will be less than 10%)	Low to medium

The above asset allocation is only indicative and may change from time to time, keeping in view the market conditions and applicable rules and regulations.

The benchmark for performance is the CRISIL Liquid Fund Index.

Quantum Liquid Fund offers three variants to investors –

• Growth Plan – requiring a minimum investment of Rs 5,000.00 and additional investments in multiples of Rs. 5,00/- The accruals would be added to the NAV. So, over a period of time, the NAV of the growth plan would increase.
• Monthly Dividend Payout Plan – also requiring a minimum investment of Rs 5,000.00 and additional investments in multiples of Rs. 5,00/- The accruals would add on to the NAV during the month. Once a month, the dividend is declared and paid out.
• Daily-Dividend Re-investment plan – requiring a minimum investment of Rs 1,00,000.00 and additional investments in multiples of Rs. 1,000/- The dividend declared would be reinvested (net of dividend distribution tax) daily. Thus, the number of units held by an investor would increase and the NAV would remain at Rs. 10.

a) Growth schemes of Liquid Funds are taxed as follows -

Short Term Capital Gains (profits realised on a holding period of under one year) –

• Indian Nationals - It is added to your taxable income and taxed at your marginal rate of tax
• NRIs - taxed at 30.0% plus applicable surcharge and cess

Long Term Capital Gains (profits realised on a holding period of over one year) –

• Indian Nationals - Taxed @ 20.0% with indexation and @ 10.0% without indexation (surcharge and education cess applicable)
• NRIs - Taxed @ 20.0% plus surcharge and education cess (cost indexation benefit is not available to NRIs)

Tax Working For Individuals

Tax Treatment for 1 Year Investment	Savings Deposits	Fixed Deposits	Quantum Liquid Fund (Growth Plan)
Assumed Annualized Interest Rate/Yield	3.50%	8.00%	8.00%
Tax Rate	33.99%*	33.99%	22.66%+
Annualized Net Post Tax Return	2.31%	5.28%	7.32%

( *Assumed at the highest Tax plan; + Long Term Capital Gains with indexation – at 20.0% + Surcharge + education cess; Inflation assumed at 5.0%.)

b) Dividend plans are taxed as follows:

• Indian Nationals - Returns from dividend plans are tax free in the hands of investor but the fund pays a Dividend Distribution tax (DDT) @ 25.0% plus surcharge and education cess (effective rate at 22.06%) as per the current IT rules.
• NRIs - all applicable taxes would be deducted at source (TDS) and the net redemption proceeds would be credited to your bank account. From the taxation perspective, dividend re-investment plan are the most tax efficient for NRIs.

Tax Working For Individuals – 3 month investment

Tax Treatment for 3 Month Investment	Savings Deposits	Fixed Deposits	Quantum Liquid Fund (Dividend Plan)
Assumed Annualized Interest Rate/Yield	3.50%	7.5%	7.5%
Tax Rate	33.99%*	33.99%	22.06%+
Annualized Net Post Tax Return	2.31%	4.95%	5.85%

( *Assumed at the highest Tax plan; + Effective Dividend distribution tax paid by the fund.)

• Investing Online without any paper work

Welcome to the paperless world of Quantum Mutual Fund. Investors can invest at any time at their convenience on the internet.

• Visit www.QuantumMF.com and click on the ‘Invest Online’ link, or click here to invest.
• Log on to "Invest Online" section on www.QuantumMF.com.
• Please click on "Investing with us for first time?"
• Please select the scheme you wish to invest and click on "Enter" on the right hand side of the screen.
• Please fill up the New Investor Detail Form and click on "Submit".
• Please accept the Terms and Condition for online transactions.
• Kindly fill in the required details in the "New Purchase Application Form" and create your user id and password (If you have already created an user ID , please give your credentials once again to proceed further)
• New Purchase Confirmation page with your details will be displayed.
• Purchase confirmation with the transaction reference number will be displayed.
• Please click on "Noted and Proceed" after checking the details and you will be redirected to the net banking portal of the selected bank.
• After successful payment a confirmation message will appear on the screen confirming the transaction.

You will also receive a pre-filled application form as per the details submitted by you online for your record.
We will compare the details submitted by you online with those submitted at the time of getting your KYC acknowledgement from CVL (CDSL Ventures Limited, the central repository for all KYC related documents).

You will have to generate a PIN online, which will be emailed to your at your registered email address upon verification of your details with CVL. A PIN is required to switch and redeem your investments in Quantum Mutual Fund. However, you can continue to make additional purchase in the same folio without PIN after making your first purchase online.
In case of any information on investing, please do contact our investor service helpdesk on our toll free number 1800-22-3863. We can also be reached at Customercare@QuantumAMC.com.

For Offline Investors

Investors who would like to invest in the Quantum Liquid Fund offline can download the Application form, complete it and submit it to any of the Collection Centers along with a cheque / demand draft, payable locally ( payable to "Quantum Liquid Fund" ), along with a certified copy of their PAN Card copy or KYC acknowledgement letter.

Organizations interested in investing in QLF can refer to the checklist of documents required at the time of Offline Investing in the scheme

Documents	Companies	Trusts	Societies	Partnership	FIIs
Authorization to invest
List of authorized Signatories & specimen signatures
Memorandum & articles of Association
Trust Deed
Partnership Deed
Overseas auditor’s certificate
Notarised Power of Attorney
PAN/Form 49A/60/KYC letter

Subscription – If a valid application form is received and time-stamped before 2.00 pm on any business day and the funds are available for utilization, the investor will be allotted units at the NAV of the previous day. If it is received and time-stamped after 2.00 pm, he will receive the NAV of the same day.

Redemption – If a valid redemption request is received and time-stamped before 3 p.m. on any business day, the investor will receive the proceeds at the NAV of the same day. If it is received and time-stamped after 3 p.m., the NAV considered will be of the next day.

Under normal circumstances, if a valid application request is received before 3 p.m. on a business day (T), the investor is likely to receive the funds by the end of the next business day (T+1). The investor would be able to utilise the next day (T+2). However, sometimes there may be a delay on account of technological glitches (most of the transactions occur through direct credits and electronic fund transfers). We would of course put in our best efforts to process transfers at the earliest. We cannot give an assurance on the timelines. SEBI allows a timeline of 10 business days within which the fund needs to process redemption requests.

The table below would help you make a choice based on your needs and requirements.

	Account with a bank where QLF has an account	Time of processing and clearing	Convenience/preference
Direct Credit/Fund transfer	Required	Fastest	Most preferred
RTGS/NEFT-electronic transfer	Not required	Fast	High preference/commonly used
High Value Transfer/DD/P.O	Not required	Fast	Only in high value centers/DD/P.O charges
Normal cheque clearing	Not necessary	Slow / Delayed processing	Convenient for the small investor – should prefer other options first

The above asset allocation is only indicative and may change from time to time, keeping in view the market conditions and applicable rules and regulations.

Using the Net Banking facility you can purchase the Quantum Long Term Equity Fund, Quantum Tax Saving Fund, Quantum Equity Fund of Funds and the Quantum Liquid Fund from the following Banks:

• Allahabad Bank
• Axis Bank
• Andhra Bank
• Bank of Bahrain & Kuwait
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Citibank
• City Union Bank
• Corporation Bank
• Deutsche Bank
• Development Credit Bank
• Dhanlaxmi Bank
• Federal Bank
• HDFC Bank
• ICICI Bank
• IDBI Bank
• Indian Bank
• Indian Overseas NetBanking
• IndusInd Bank
• ING Vysya Bank
• Jammu & Kashmir Bank
• Karnataka Bank
• Karur Vysya Bank
• Kotak Bank
• Laxmi Vilas Bank
• Oriental Bank of Commerce
• Punjab National Bank Corporate Net Banking
• Punjab National Bank Retail Net Banking
• Punjab and Sind Bank
• Shamrao Vitthal Co-operative Bank
• South Indian Bank
• State Bank of Bikaner & Jaipur
• State Bank of Hyderabad
• State Bank of India
• State Bank of Indore
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Travancore
• Syndicate Bank
• Tamilnad Mercantile Bank
• UCO Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank
• Yes Bank