Quantum Long Term Equity Fund (QLTEF) is an open ended equity scheme. The investment objective of the Scheme is to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the BSE 200 and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets.

Equities are an ideal asset to invest in and have provided reasonable gains in the long term. In the long run, the returns provided by equities tend to be higher than bond rates and inflation.

Quantum Mutual Fund is the first in the country to adopt a direct-to-investor approach. We do not use any distributors and therefore do not incur any distribution commissions. In comparison to other funds, investors can straightaway gain when they opt for the QLTEF. The QLTEF DOES NOT CHARGE ANY ENTRY LOADS. Schemes purchased through distributors usually involve an entry load of 2.25%. The amount may not seem much, but it compounds over the years and can add up to a large amount. Click Here to see how your returns can erode in the longer run (link to reworked cost sheet).

There is also the smaller, but equally important issue of trail commissions. Trail commissions are amounts paid to mutual fund distributors or advisors in the years after you buy the investments. This is a hidden expense as it is usually included in the fund management fees (expense ratio). Ultimately, this comes out of your returns. As the QLTEF does not pay any distributor commission, an investor is also saved the trail commissions.

The asset allocation of the scheme is as follows.

Type of Security	Normal allocation(% of corpus)	Minimum allocation (% of corpus)	Maximum allocation(% of corpus)	Risk profile
Listed Equity & Equity Related Securities of Companies	95-99	65%	99%	High
Unlisted Equity & Equity Related Securities of Companies	0-3	0%	5%	High
Money market instruments	1-5	1%	35%	Low
Liquid Schemes of Mutual Funds	0-5	0%	5%	Low

The fund would benchmark its performance to the BSE Sensex TRI (total returns index).

We prefer the BSE Sensex Total Returns Index to the BSE Sensex as it offers a better comparison of performance. A TRI index includes the impact of all material facts- including dividends, other cash distributions and capital gains. The investor would naturally be entitled to such benefits. The BSE Sensex on the other hand only records the impact of the capital gains.

The scheme offers Growth & Dividend Options. The dividend plan in turn offers Dividend Payout Reinvestment facilities.

Almost anyone can invest in the QLTEF including…

• Resident adult individuals either singly or jointly (not exceeding three);or on an Anyone or Survivor basis.
• Karta of Hindu Undivided Family (HUF).
• Minors through parent/legal guardian.
• Partnership Firms.
• Companies, Bodies Corporate, Public Sector Undertakings, Association of Persons or bodies of individuals and Societies registered under the Societies Registration Act,1860.
• Banks & Financial Institutions.
• Mutual Funds registered with SEBI.
• Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as required) and Private trusts authorized to invest in mutual fund schemes under their trust deeds.
• Non-Resident Indians (NRIs)/Persons of Indian origin residing abroad (PIO) on repatriation basis or on non-repatriation basis (except those from Canada and the USA).
• Foreign Institutional Investors (FIIs) registered with SEBI on repatriation basis.
• Army, Air Force, Navy and other para-military units and bodies created by such institutions.
• Scientific and Industrial Research Organizations.
• Multilateral Funding Agencies/Bodies Corporate incorporated outside India with the permission of Government of India/ Reserve Bank of India.
• Other schemes of Mutual Funds subject to the conditions and limits prescribed by SEBI Regulations.
• Trustee, AMC or Sponsor or their associates may subscribe to Units under the Scheme.
• Such other individuals/institutions/body corporate etc., as may be decided by the Mutual Fund from time to time, so long as wherever applicable they are in conformity with SEBI Regulations.

The Quantum Long Term Equity Fund is intended for investors with a long term investing horizon. The exit load is imposed to discourage investors who may churn frequently. Such a churn will adversely impact the returns of the other investors. The exit loads are applied on a variable basis depending on the term of the investment. Investors who have stayed invested for at least 2 years will not be charged any exit load

The exit loads are applicable as follows.

Repurchase/ Redemption/Switch Out	Exit load
within 6 months of allotment	4.00%
after 6 months but within 12 months of allotment	3.00%
after 12 months but within 18 months of allotment	2.00%
after 18 months but within 24 months of allotment	1.00%
after 24 months of allotment	Nil

At a first glance, the expense ratio of the QLTEF will appear to be marginally on the higher side. We are still within the limits recommended by SEBI. In the QLTEF, what you see is exactly what you get. There are no hidden expenses.
Please read - "High exit loads actually work for you!" for more details

	Long Term Capital Gains	Short Term Capital Gains
Individuals, HUFs, Partnership, Indian Companies.	Tax free	Taxed at 30% (+ surcharge and education cess).Incase transaction of sale is chargeable to STT then the tax rate is 15%.
FIIs	Period of more than 12 months, Taxed at the rate of 10% (+ surcharge and education cess). No benefit of cost inflation index and currency fluctuation.	Same as above
NRIs	Tax free	Same as above
Specified overseas financial organizations	Period of more than 12 months, Taxed at the rate of 10% (+ surcharge and education cess). No benefit of cost inflation indexation.	Same as above
Non-Residents and Foreign Companies	Subject to income tax of 20% (+ surcharge and education cess)

In addition, income received in the form of dividends by all categories of unit-holders from the scheme will be exempt form income tax in their hands.

We believe that there is no good or bad time to invest. Investors would be better served by saving and investing regularly and leaving the worries to the fund manager. Compounded returns tend to have significant impact over long periods of time. So, the earlier one begins to invest in mutual funds, the better the returns would be.

We do not look too much into the Sensex number and the gain and loss for the day. We are focused on individual stocks and buy them at prices we are comfortable with. If the prices are too high, we do not buy them. We follow a disciplined research and investment process.

A historical analysis of the QLTEF holding portfolio would reveal that whenever stock prices were expensive, we maintained a high cash level. So, when a correction came, our NAV was not affected so much. The higher cash levels also helped us to buy stocks at prices we liked.

• 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 Long Term Equity 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 Long Term Equity Fund" ), along with a certified copy of their PAN Card copy or KYC acknowledgement letter.

Organizations interested in investing in QLTEF 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 3 p.m. on any business day and the funds are available for utilization, the investor will be allotted units at the NAV of the same day. If it is received and time-stamped after 3 p.m., the investor will receive the NAV of the next 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.

The same timelines would apply for online transactions.

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