What is the Investment Objective of the Quantum Index Fund?
The investment objective of the scheme is to invest in stocks of companies comprising CNX Nifty Index and endeavor to achieve returns equivalent to the Nifty by “passive” investment. The scheme will be managed by replicating the Index in the same weightage as in the CNX Nifty Index with the intention of minimizing the performance differences between the scheme and the CNX Nifty Index in capital terms, subject to market liquidity, costs of trading, management expenses and other factors which may cause tracking error.
Tell me more about the Quantum Index Fund or QIF.
Quantum Index Fund is an Exchange Traded Fund
also known as ETF.
ETF units are listed on stock exchanges and traded like equity shares. An ETF would have some underlying security or group of securities like an index, sector stocks or commodities, like gold. These underlying securities determine the ETF’s value.
An Index ETF is fund that has any stock exchange index as the underlying security. So, the value of the ETF is derived from the value of underlying index. Index ETF would be a passive investment; so, when index prices move up, the ETF appreciates and when index prices move down, the ETF price comes down. As Index ETFs track Index prices, the only differentiating factor would be the costs borne by the Fund House.
Quantum Index Fund – QIF
seeks to offer investors a cost-efficient way to invest in CNX Nifty Index. The units of QIF issued under the scheme will be approximately equal to the price of 1/10 (one-tenth) of the CNX Nifty Index. Through the lower cost of operations, QIF would provide investors an excellent means of investing in CNX Nifty Index which is a broad based diversified index.
It is pertinent to note that Quantum Mutual Fund is India’s first and only Direct to Investor fund house and does not pay any commission whatsoever to distributors. Not paying commissions decreases the expense of most of our schemes and thereby adds to the returns of the schemes (subject to performance).
Investor looking for long term investments across shares which are part of CNX Nifty Index can invest in QIF. Some attributes of QIF are;
||QIF offers diversification as it comprises of a basket of securities, which inherently provides diversification across an entire index.
||QIF gives you a better idea beforehand about where your money will be invested. The performance of QIF generally corresponds to the underlying Index.
||As a retail investor, you might not be able to afford the entire basket of underlying stocks. QIF offers affordability as the unit cost is low when compared to the prices of its constituents.
E.g. Assume that ABC Industries forms approximately 10% of the CNX NIFTY Index. To buy one unit (share) of the same the investor has to pay approximately Rs. 800.00 (the current price of ABC Industries on Stock exchange). But by investing Rs. 500.00 in QIF (which consists of ABC Industries approximately 10%) the investor is buying Rs.50.00 worth of ABC Industries share (1/10th of Rs.500.00) and also getting exposure to 90% of other CNX NIFTY stocks.
Is Quantum Index Fund Rajiv Gandhi Equity Savings Scheme (RGESS) compliant?
Yes, Quantum index fund is Rajiv Gandhi Equity Savings Scheme (RGESS) compliant because;
||It is an Open Ended Exchange Traded Fund listed on the NSE tracking the CNX Nifty Index.
||It invests in the equity shares of the companies forming part of CNX -100 Index.
||Settled through a depository mechanism. .
An addendum was issued on January 4, 2013 notifying that Quantum Index Fund is RGESS compliant effective from January 7, 2013 and investments made in Quantum Index Fund will qualify for deduction under RGESS. Click here to read the addendum.
Why should I invest in Rajiv Gandhi Equity Savings Scheme (RGESS) compliant scheme?
Investments made under RGESS qualify for exemption under section 80CCG of the IT act 1961. An investor will be eligible to get a tax deduction of 50% on the amount invested under RGESS (however, the maximum investment amount available for exemption is INR 50, 000).
Investor looking to avail the Tax deductions under RGESS may invest in Quantum Index Fund. Click here to know more about RGESS.
What are the different options/facilities available under the Quantum Index Fund?
The scheme offers only Growth Option.
What are the different features available under the Quantum Index Fund?
Systematic Investment Plan, Systematic Transfer Plan and Systematic Withdrawal Plan are not available under Quantum Index Fund.
Investors do have the option of regularly buying units from the listed exchanges and accumulating their QIF holdings.
Where will the Quantum Index Fund invest? What is the Current portfolio?
The Quantum Index Fund may invest in the following Instruments:
|Instruments / Securities Covered
||Indicative Allocation (% of total Assets)
||Risk Profile |
|Securities covered by the CNX Nifty
|Money Market Instruments, other short term debt instruments as permitted under SEBI (Mutual Funds) Regulations, 1996 and Liquid Schemes of Mutual Funds
The AMC uses a "passive" or indexing approach to try and achieve Schemes Investment objective. The scheme would alter the scrips /weights as and when the same are altered in the CNX-Nifty Index.
Click here to view the current portfolio of the Quantum Index Fund
Can I hold the units in Demat mode under the Quantum Index Fund?
The units will be issued only in dematerialized form through depositories.
To avail the same you should have a Demat/beneficiary account with a DP and need to mention all the details of your account no. and DP while filling the application form.
Tell me more about the NAV applicability and cut-off timing of the Quantum Index Fund.
To know more about the NAV/price applicability and related concepts please click here
What is the minimum amount I need to invest in Quantum Index Fund? (Retail investors and Large investors/AP)
The minimum amount of investment will change according to the category you fall under i.e. Retail Investor and Large Investor or Authorised Participants (AP).
Retail Investors- On the Exchange:
Price close to the NAV of 1 QIF Unit. On NSE, the units can be purchased in minimum lot of 1 unit and in multiples thereof. The units of QIF issued under the scheme will be approximately equal to the price of 1/10 (one-tenth) of the CNX Nifty Index
To read more on minimum amount for Large investors/AP please read the SID of QIF or please click here. please click here
What are the entry and exit loads for the Quantum Index Fund?
Entry Load: NIL*
* Not Applicable (In terms of SEBI circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 it has been notified that, w.e.f. August 01, 2009 there will be no entry load charged to the schemes of any Mutual Fund. )
It should be noted that Quantum Mutual Fund has not charged Entry Load for any of its schemes since inception. We were one of the first mutual funds in India to launch schemes with no entry load, much prior to SEBI discontinuing the same.
There is No exit load if you wish to redeem from the scheme. (Retail investor can exit the scheme only through secondary market).
What is the current expense ratio of the Quantum Index Fund?
Current expense ratio is 0.50% p.a. with effect from October 1, 2010.
Who is managing the Quantum Index Fund?
How has the Quantum Index Fund performed?
What is the Benchmark of the Quantum Index Fund? Why?
The performance of the Quantum Index Fund will be benchmarked to the performance of CNX Nifty - Total Return Index. The scheme will track CNX Nifty - Total Return Index and portfolio of the scheme comprises by replicating the Index in the same weightage as in the Nifty subject to tracking error. Thus, the aforesaid benchmark is such that it is most suited for comparing performance of the scheme.
Tell me about the Tax implications if I invest in the Quantum Index Fund.
How do I invest in the Quantum Index Fund? (Retail investors and Large investors/AP)
Quantum Index Fund is listed on the National Stock Exchange (NSE) with the symbol QNIFTY.
You can buy/sell Quantum Index Fund units on the National Stock Exchange, through your stock broker, or through your online trading service. Each unit of QIF will be approximately equal to 1/10th (one tenth) of the CNX Nifty.
The investment process will change according the category you fall under i.e. Retail Investor and Large Investor or Authorised Participants (AP).
RETAIL INVESTOR -
||Units of the QIF will be issued and settled compulsorily in dematerialized form. So you should have a Demat (beneficiary) account with a depositary participant of NSDL or CDSL.
||You can buy QIF units on the capital market segment of NSE, during trading hours at a price which may be close to the NAV of the Scheme.
||You have to instruct your broker to buy/sell QIF units and pay the transaction amount to him.
||Also give standing instructions for "Delivery-in" to your DP for accepting units in your Demat account.
||After the execution of trade; the broker will transfer the QIF units directly to your Demat account.
||If you trade online, you can input buy/sell orders on your system at your convenience and pay the broker online. QIF can be found under the equity section, and not mutual fund section, of your online trading service.
Broker codes for some of the online trading services are mention below:
||QGF Unit Ticker
LARGE INVESTORS AND AUTHORISED PARTICIPANTS- To read more on how to invest for Large investors/AP please read the SID of QIF please click here
Who can and cannot invest in the Quantum Index Fund?
Disclaimer, Statutory details and risk factors;
Mutual fund investments are subject to market risks read all scheme related documents carefully. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.
Disclaimer of IISL:Quantum Index Fund (QIF) is benchmarked to CNX Nifty Index are not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL is not responsible for any errors or omissions or the results obtained from the use of such index and in no event shall IISL have any liability to any party for any damages of whatsoever nature (including lost profits) resulted to such party due to purchase or sale or otherwise of such product benchmarked to such index. Please refer SID of the QIF for full Disclaimer clause in relation to the "CNX Nifty Index".
Disclaimer of NSE:It is to be distinctly understood that the permission given by National Stock Exchange of India Limited (NSE) should not in any way be deemed or construed that the Scheme Information Document (SID) of QIF has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the SIDs. The investors are advised to refer to the SID of QIF for the full text of the Disclaimer clause of NSE.