What is the Investment Objective of the Quantum Tax Saving Fund?
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 Index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets.
Tell me more about the Quantum Tax Saving Fund or QTSF.
There is a saying in the world of investing, which is “higher the risk, higher the gain”. This is very significant when we speak of investing in the stock markets or Equities. Over the long term (5 years or more) Equities tends to give better returns to the investor, which also goes with the inherent risk of investing in Equities. For example over the last 10 years the BSE Sensex has given returns in the range on 18-20% (Source Bloomberg), which is probably higher than other vehicles of investment. However, we know how unpredictable the markets can be, hence sound investment strategies like a bottom-up stock selection process can be used to minimize risk. Click here to read more
An Equity Linked Savings Scheme or ELSS is a mutual fund scheme that invests in equity and equity related securities and are eligible for a deduction under section 80C of the Income Tax Act, 1961. These schemes have a lock-in period of three years, and thus, investments made in such a scheme cannot be redeemed / switched out before the completion of 3 years since the date of investment.
Quantum Tax Saving Fund
- QTSF is an open ended equity linked savings scheme or ELSS having 3 years lock in period. Open Ended Scheme means it is open for purchase and redemption on all business days. Investors can conveniently buy and sell (after the lock in period) units at Net Asset Value ("NAV”) based prices offering complete liquidity.
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).
Investors looking to invest in equity for minimum of 3 years with high risk appetite and avail tax benefits with the same can invest in QTSF. Some attributes of QTSF other than the complete transparency we offer and the convenience of Investing Online without any paperwork are;
||QTSF helps you save your taxes. Investments in the Quantum Tax Saving Fund are eligible for tax benefits under section 80C of the Income Tax Act, 1961. Thus Tax saved = Money earned.
||QTSF helps to Reduce Churning (frequent buying and selling) of portfolio. It has Lock in period of 3 years which helps to reduce portfolio churn as the fund manager does not need to re-adjust the portfolio to meet frequent redemptions. This could result in reduced recurring expenses and could also positively impact potential returns.
||QTSF follows disciplined research and investment process.
||QTSF consists of a well balanced portfolio - typically 25 to 40 stocks, across various sectors.
What are the different options/facilities available under the Quantum Tax Saving Fund?
The scheme offers Growth Option and Dividend Option.
If you decide to opt for the dividend option, you would again have to choose one of the facilities: Dividend Payout or Dividend Reinvestment.
Dividend history of the scheme
We have not paid out dividends since our Inception, but, we do know how to manage your money, and manage it well – our NAV has nearly doubled, and our expense ratios have moved down – ensuring you of even better returns.
Click here to read our article on "We invite you to declare your own Dividend"
What are the different features available under the Quantum Tax Saving Fund?
The following features are available in the scheme:
Systematic Investment Plan (SIP):
This feature enables investors to save and invest periodically over a long period of time. Click here to know more about SIP in detail
Systematic Withdrawal Plan (SWP):
This feature enables an investor to withdraw amount/units from their holdings in the Scheme at periodic intervals through a one-time request. Please note that you can avail this Option only after completion of 3 years from the date of allotment of units.
Click here to know more about SWP in detail
Systematic Transfer Plan (STP):
This feature enables an investor to transfer fixed amounts from their accounts in the Scheme to another scheme within a folio from time to time. Please note that you can avail this Option only after completion of 3 years from the date of allotment of units.
Click here to know more about STP in detail
Click here to view switch matrix for the applicable NAV
A trigger is facility that allows you to specify an exit target (linked to value or time) or to receive an update when the desired levels are reached. The moment this target is achieved, the trigger gets activated.
There can be Alert triggers or Action trigger.
Click here to view the FAQ on Trigger Facility
Where will Quantum Tax Saving Fund invest? What is the Current portfolio?
Quantum Tax Saving Fund may invest in the following Instruments:
||Indicative allocations(% of Total Assets)
||Risk Profile |
|Equity and equity-related Securities*
|Debt and money market instruments
||Low to Medium|
The investment strategy of the Scheme will be to invest in a basket of stocks after using intensive fundamental analysis, both quantitative and qualitative, monitor the portfolio actively but not so as to engage in excessive trading, and control risk by keeping the portfolio adequately diversified.
Click here to view the current portfolio of the Quantum Tax Saving Fund
Can I hold the units of the Quantum Tax Saving Fund in Demat mode?
Yes, there is an option to hold the units in dematerialized mode.
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.
Also please note that SIP is allowed in Demat mode BUT Switch in/ Switch out/ Systematic Withdrawal Plan/ Systematic Transfer Plan are currently not available in the demat mode.
Click here to view the FAQs on Demat
Tell me more about the NAV applicability and cut-off timing of the Quantum Tax Saving Fund.
NAV applicability refers to the NAV at which a transaction is affected. A cut-off time is set by the fund and all investments or redemptions are processed at that particular NAV. This NAV is relevant if the application is received before that cut-off time on a day. A different NAV holds if received thereafter. Every Mutual fund follows standard cut-off timing depending on the scheme type which are in compliance with SEBI guidelines.
To know more about the NAV applicability and cut-off timings of the Quantum Tax Saving Fund please click here
What is the Minimum amount I need to invest or redeem in Quantum Tax Saving Fund?
Please refer below table for the minimum amount required to invest or redeem in the Quantum Tax Saving Fund.
||Amount in Rs.|
||Rs. 500/- and multiples of Rs. 500/- thereafter|
||Rs. 500/- and multiples of Rs. 500/- thereafter|
|Redemption/ Switch Out
||Rs. 500/-or 50 units (Redemption can be made only|
after a period of 3 years from the date of allotment
What are the entry and exit loads for the Quantum Tax Saving Fund?
Load structure for the Quantum Tax Saving Fund is mentioned below:
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 or switch out from the scheme. Please note that you will be able to exit only after completion of 3 years from the date of investment.
What is the current expense ratio of the Quantum Tax Saving Fund?
Current expense ratio is 1.25% p.a. with effect from June 1, 2011.
We have one of the lowest expense ratios in Mutual Fund industry because we are direct to investor fund house and does not pay any commission to distributors.
Click here to read our article on “pays to stay direct.”
Who is managing the Quantum Tax Saving Fund?
How has the Quantum Tax Saving Fund performed?
What is the Benchmark of the Quantum Tax Saving Fund? Why?
The scheme would be benchmarked to the BSE 30 Total Return Index (TRI). It appropriately represents the returns from the BSE 30 Sensex since it includes the dividend received from the BSE 30 companies. Therefore, the aforesaid benchmark is most suited for comparing performance of the Scheme. The Scheme's portfolio has a bias towards high liquidity stocks. BSE 30 TRI therefore makes a good benchmark as it comprises large cap stocks which are highly liquid.
Tell me about the Tax implications if I invest in the Quantum Tax Saving Fund.
How do I invest in the Quantum Tax Saving Fund?
PLEASE NOTE THAT YOU SHOULD BE KYC COMPLIANT TO INVEST WITH US.
Click here to know more about KYC.
You can invest in our Schemes through the following three modes:
1. Online : Through internet transacting facility
2. Offline : Directly by submitting physical transactions
3. Through the stock exchange platform
Choose your preferred mode and click on the below links to read more and invest with us.
Who can and cannot invest in the the Quantum Tax Saving 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.