HomeFAQs Quantum Equity Fund of Funds
 

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  • What is a Fund of Fund?
    Fund of Fund
      • Is a mutual fund investing in schemes of other funds.
      • It uses its expertise in identifying schemes and fund houses for investments.
      • The expertise reduces the risk of wrong selection of funds.
      • It reduces the hassles of making multiple investments.
      • It is a one-stop solution for your investment requirements

    A FUND OF FUNDS can invest in any asset class - equity, debt or commodities.
  • What is the Quantum Equity Fund of Fund?

    Quantum Equity FUND OF FUNDS is an Equity oriented mutual Fund of Funds scheme. The fund will be investing in 5-10 diversified equity schemes of third party mutual funds. The investments will be made based on the recommendations provided by Quantum Information Services (QIS) – PersonalFN, following proprietary quantitative and qualitative selection criteria.

  • Are there any entry and exit loads?

    No, there will be no entry load for making investments in Quantum Equity Fund of Funds. However, an exit load of 1.5% will be charged if the investments are redeemed within 1 year from the date of investment.

  • What are the benefits of investing in a Fund of Funds scheme?
      • To reduce manager selection risk – which fund house to choose?
      • To reduce scheme selection risk – which equity scheme to choose?
      • To benefit from proven research expertise and risk control
      • To get exposure to the best performing funds
      • To get exposure to diverse fund management styles
      • To smartly use the ‘No-Entry’ Load direct investment route
      • To invest without ‘bias’ – fund house bias, distributors bias
      • To accumulate all your equity holdings and get a consolidated reporting

    By investing in a Fund of Funds, you do not need the services of a financial advisor whose advice could at times be biased, unsuitable and expensive

  • Why should I use a Fund of Funds to invest in Equities?

    The following chart shows the complexity in deciding which scheme to invest in. There are myriad schemes and plans making the investment decision extremely difficult.



    Source - Crisil, AMFI

    Also, how do you ensure that the selected fund/s will perform well? Data shows that in a 3 year time frame – 72 out of 150 funds selected gave below average return. So the chances of an investor selecting a poor performing fund are very high.


    It’s simple:
    If you do not have the time and/ or the inclination to select STOCKS - Invest in MUTUAL FUNDS.
    If you do not have the time and/ or the inclination to select MUTUAL FUNDS – Invest in Fund of Funds.

  • How will the fund select the schemes?

    Quantum Equity Fund of Fund will follow a comprehensive research methodology for selecting the schemes. The research methodology comprises of both, quantitative and qualitative analysis.


    Quantitative analysis – Under quantitative analysis, the focus will be on the performance of the schemes across time frames and market cycles. In addition to it, the schemes will be evaluated based on the stock concentration levels in their portfolios, and also on the risk-adjusted returns front.


    Qualitative analysis – The qualitative parameters will largely judge the fund on the parameters like fund house’s investment systems and processes, the performance of the scheme across market cycles, consistency in characteristics of its portfolio among others.

    Funds that emerge as the top performers on both the above parameters shall form part of the final portfolio.

    The Fund will also constantly review its investments and carry out necessary re-balancing to ensure superior consistent performance

  • What is the expense ratio for the Quantum Equity Fund of Funds?

    Investments in Quantum Equity Fund of Funds would entail investors to pay an Expense Ratio of 0.30% p.a. This is over and above the expense ratio charged by the underlying mutual fund schemes which would be accounted in the NAV

  • Are their any risks/ - the risk of selecting a bad fund, and the risk that any other fund carries – market risk….
    There are few risks which are associated with Fund of Funds.
      • The risk of selecting a bad fund in the Fund of Funds portfolio. This can have an adverse impact on the performance of the fund.
      • Given Fund of Funds invests in other mutual fund schemes, they carry all the risk associated with the investments made by underlying mutual fund schemes.
      • Given Fund of Funds are related to the markets (equity, debt among others), any change in the market conditions will have an impact on its performance.
  • What are the tax implications?

    The tax implications on Fund of Funds are same as that of debt mutual funds (even if they invest in equity-oriented funds).

     

  • Can a Non Resident Indian (NRI) invest in the Quantum Equity Fund of Funds?

    Yes, NRI’s can invest in the Quantum Equity Fund of Funds, provided that the country of residence is a part of the FATF (Financial Action Task Force) countries list given below. However, NRI’s residing in the United States of America (USA) and Canada cannot invest in the Quantum Equity Fund of Funds.

    Argentina Australia Austria Belgium Brazil
    China Denmark European Commission* Finland France
    Germany Greece Gulf Co-operation Council Hong Kong, China Iceland
    Ireland Italy Japan Kingdom of the Netherlands** Luxembourg
    Mexico New Zealand Norway Portugal Russian Federation
    Singapore South Africa Spain Sweden Switzerland
    Turkey United Kingdom
    **Kingdom of Netherlands:The Netherlands, the Netherlands Antilles and Aruba
  • How to invest?
    • 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 Equity Fund of Funds 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 Equity Fund of Funds" ), along with a certified copy of their PAN Card copy or KYC acknowledgement letter.


    Organizations interested in investing in QEFOF 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
  • Through which banks can I invest in Quantum Mutual Fund?

    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

© 2013 Quantum Asset Management Company Private Limited.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.