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Understanding Risk in your Investments

Updated on 17-7-2017

All investing involves an element of risk. In a mutual fund investors trust their money to the fund manager whose team in turn invests it in securities linked to the financial market – equities, debt, and gold depending on the fund’s nature. And the market values of these keep moving which makes the returns from mutual funds subject to risk.

Risk overview

The risk in mutual funds investment mainly refers to the possibility of returns being different from what was originally expected. In other words risk indicates volatility of returns. Generally higher the return higher would be the risk associated with the investment. This relationship of risk and return is central to investing, which all investors should be aware of.

Fundamentally it works this way because investors who take on higher risk need to be compensated with higher returns. Thus although ‘risk’ commonly rings a negative connotation for investors, who believe it is to be avoided as much as possible, it is not necessarily an evil. By understanding and managing it investors can use it to their advantage in meeting their investment goals.

Understanding your risk appetite to choose investments

To be able to choose the right funds an investor needs to be aware of his/her risk appetite. Risk appetite refers to the ability and willingness of a person to tolerate loss of their investment. Individual risk tolerance is a very subjective matter and depends on one’s financial situation as well as psychological characteristics. For an overall review of your financial situation kindly take the Financial Health Check Up questionnaire.

An aggressive investor is prepared to take higher risk in anticipation of higher returns whereas a conservative investor would be content with low returns in return of lower risk. Therefore the products a person aged 50 years uses for building retirement corpus may be very different from what a person aged 35 years may choose for the same goal.

Generally speaking, amongst the securities that mutual funds’ portfolio are built of, the spectrum of risk would have cash and money market securities having the lowest risk at the left end, bonds and other debt securities in the middle and gold, equities at the right having the highest risk.


Aligning investments with your risk appetite is important for success. For an assessment of your risk profile and suggested investment portfolio kindly visit the Asset Allocation calculator.

Measures of risk in mutual funds

It’s important to understand the level of risk linked to an investment product while planning to employ it. Two funds giving similar returns may not be equally attractive as one can be significantly risky than the other. For you to be able to choose funds suiting your risk profile we have classified schemes of Quantum Mutual Fund based on their riskiness below. However first we present the basic risk measures commonly used to evaluate mutual funds – alpha, beta, r-squared and standard deviation.

Beta
Beta measures a fund’s volatility in comparison with the market. The volatility of the market is 1 by convention. For mutual funds their benchmark is taken to be the market.

A beta greater than 1 says the fund is more volatile than the market whereas beta less than 1 indicates it is less volatile the market. For instance if a fund has beta 1.1 then it is 10% more volatile than its benchmark. This means when the benchmark’s return is 20% the fund’s return would be 22%.

Higher beta thus means higher risk. Conservative investors would seek funds with low beta levels.

Alpha
Alpha measures a fund’s outperformance with respect to its benchmark. Technically it indicates a fund’s performance as measured by the difference in actual returns and the returns one would have expected based on its beta risk. So a positive alpha indicates a fund’s outperformance compared to what was expected based on its beta and a negative alpha tells a fund has underperformed than what its beta predicted.

In essence alpha represents the value a fund manager adds to the fund by managing its portfolio, over and above the market’s returns. Alpha returns come from the fund manager’s ability to pick the right securities and also time the entry and exit in those securities well.

Higher the alpha the better it is for investors. However for index funds, whose portfolios are supposed to be replicas of their benchmarks, alpha is not a relevant risk tool.

R-squared
R-squared tells how similar a fund’s performance is to its benchmark’s; or put differently how much of the performance comes solely from movements in its benchmark. R-squared or R2 could range from 0-100 with 100 signifying absolute similarity and 0 signifying absolute variance.

Actively managed funds would be expected to have low R2 since their portfolio would not be identical to their benchmark index and hence their performance would be quite different from the benchmark’s.

To correctly measure a fund’s risk-return in terms of alpha, beta it is important that the selected benchmark has high R2.

Standard deviation (SD)
This measure is used perhaps more than others in gauging a fund’s risk. Standard deviation of a fund, expressed as a percentage, defines how much a fund’s return has varied from its average return. If a fund has higher standard deviation its returns (as calculated from NAV) is expected to be so much more volatile. In short standard deviation of a fund represents the consistency of its performance.

Getting a little deeper into the properties of standard deviation, in most cases the fund’s future returns would fall within one SD 68% of the time, within two SDs 95% and within three SDs 99% of the time. What this means is if a fund has standard deviation of 5 and its average annual return has been 15% then one can expect its returns to lie between 10% and 20% most of the time (or to be accurate 68% of the time) and can expect them to be between 5% and 25% almost all of the time (95% of the time).

Standard deviation of a fund should be studied in comparison with its peer funds - funds of a category having similar portfolio construction.

Risk levels of Quantum’s funds

Here is a graphical comparison of Quantum’s schemes based on the high risk-high return, low risk-low return principle.

Illustrative view

Disclaimer: The above chart is for illustration purpose only
The various BSE and NSE Indices are compiled on factors such as market cap, trading volume, and a broad sector representation. In doing so, the quality of the management - while admittedly a qualitative judgement - is not considered. This, in our view, represents "risk". For the increased "risk" taken, financial theory suggests that investors should get higher returns. By adding an integrity screen to our investment process, the Quantum Long Term Equity Fund (QLTEF) and the Quantum Tax Saving Fund (QTSF) are attempting to reduce such "risks" - and therefore might generate lower returns. To peruse the performance of our schemes please see below. Past Performance may or may not be sustained in the future.

Quantum Liquid Fund which invests primarily in money market securities is expected to be in the low risk category among all funds. Quantum Dynamic Bond Fund invests in debt securities and therefore follows the liquid fund on this chart. Following it are Quantum Gold Savings Fund whose portfolio is mostly composed of units of Quantum Gold Fund (ETF) along with a small exposure to liquid securities, and Quantum Gold Fund (ETF) investing in gold bullion.

Quantum Multi Asset Fund comes next; its portfolio has exposure to equities, debt and gold.

Farther along the risk chart are the equity funds. Quantum Tax Saving Fund and Quantum Long Term Equity Fund are expected to have greater risk than the non-equity funds. Quantum Equity Fund of Funds which invests in a basket of select equity mutual funds features next. Quantum Index Fund (ETF) at the farthest is expected to be in the high risk category among all funds as it replicates the index Nifty 50 in composition and has no active management by fund managers.

In reality however the riskiness of funds – as known from their actual performance studied over periods – may vary from the illustrative chart based on various factors that affect performance such as state of the national economy, climate in global financial markets, exchange rate scenario, etc.

Graph based on Daily NAV data from date of inception of respective Schemes till 30th June 2017

Disclaimer: Past Performance may or may not be sustained in the future.


1. This graph attempts to show you the actual ‘risk’ of investing in each scheme of Quantum Mutual Fund, returns on the Y-Axis are actual CAGR return numbers since inception whereas Standard Deviation is meausred on the X-Axis.

2. Standard Deviation is calculated since Inception of the scheme to 30 June 2017. Please refer to the table below for the inception dates of the respective schemes:

List from lowest standard deviation to highest standard

Name of the Fund

Date of Inception

Risk(Standard Deviation) (%)

Return (%)

Quantum Liquid Fund  (QLF)

7-Apr-06

0.28

7.63

Quantum Dynamic Bond Fund  (QDBF)

19-May-15

4.0012.32

Quantum Multi Asset Fund  (QMAF)

11-Jul-12

5.2310.33

Quantum Gold Savings Fund (QGSF)

19-May-11

13.833.07

Quantum Equity Fund of Funds (QEFOF)

20-Jul-09

14.6615.47

Quantum Tax Saving Fund (QTSF)

23-Dec-08

14.7920.40

Quantum Long Term Equity Fund (QLTEF)

13-Mar-06

18.2815.12

Quantum Gold Fund ETF (QGF)

22-Feb-08

19.178.74

Quantum Nifty ETF Fund (QNF)

10-Jul-08

21.8211.01

3. Standard Deviation is calculated on daily returns of respective Schemes, which is arrived from the declared daily NAV’s and then annualized for respective Schemes.

Now that you know to assess risk of investing in mutual funds, take a look at the following performance graphs and accompanying tables to observe volatility of Quantum’s funds in comparison with their respective benchmarks.

Performance and NAV chart of Quantum Long Term Equity Fund (QLTEF)
Mr Atul Kumar is the Fund Manager effective from November 15,2006
Mr Nilesh Shetty is the Associate Fund Manager effective from March 28,2011.
PeriodScheme ^S&P BSE- 30 TRI ReturnsS&P BSE Sensex ReturnsCRISIL - AMFI Large Cap Fund Performance Index #CRISIL - AMFI Diversified Equity Fund Performance Index #Value of investment of Rs. 10,000@
Scheme (Rs.)S&P BSE- 30 TRI (Rs.)S&P BSE Sensex (Rs.)CRISIL - AMFI Large Cap Fund Performance Index (Rs.) #CRISIL - AMFI Diversified Equity Fund Performance Index (Rs.) #
June 30, 2016 to June 30, 2017 (1 year)16.26%15.95%14.53%18.02%19.24%11,62611,59511,45311,80211,924
June 30, 2014 to June 30, 2017 (3 years)11.89%8.29%6.75%10.50%11.51%14,01112,70312,16713,49613,869
June 29, 2012 to June 30, 2017 (5 years)17.30%13.80%12.13%15.44%16.99%22,22319,09817,74020,51521,936
June 30, 2010 to June 30, 2017 (7 years)13.46%9.91%8.29%11.10%11.55%24,22719,38417,46920,90821,508
June 29, 2007 to June 30, 2017 (10 years)14.20%9.30%7.75%10.54%11.12%37,77324,34721,10627,26028,738
Since Inception (13th March 2006)15.12%11.35%9.74%12.00%12.53%49,18033,72228,62136,02238,021

^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option.
@ shows the current value of Rs 10,000/- invested at the beginning of a given period. Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR).
# For methodology please refer the bottom of this page.
Quantum Mutual Fund since its launch did not have Separate Plans for receiving any investment applications either through distributors or directly from investors till March 31, 2017. Effective from April 1, 2017, the Existing Plan has been classified as Direct Plan and a new Regular Plan has been launched to receive the investment applications through distributors, with both the plans having different expenses structure. The performance details provided herein is of the plan now classified as Direct Plan as stated above. Different Plans shall have different expense structure.

The Scheme is co-managed by Atul Kumar and Nilesh Shetty. Click here for performance details of other funds managed by him.



NAV chart- Quantum Long Term Equity Fund


Past Performance may or may not be sustained in the future
Note: NAV & Benchmark data considered for above graph are quarter end data.

Performance and NAV chart of Quantum Liquid Fund (QLF)
Mr Pankaj Pathak is the Fund Manager effective from March 01,2017.
PeriodQLF ^Crisil Liquid Fund IndexCrisil 1 year T-bill Index (Rs.)CRISIL - AMFI Liquid Fund  Performance Index #Value of investment of Rs. 10,000@
Scheme (Rs.)Crisil Liquid Fund Index (Rs.)Crisil 1 year T-bill Index (Rs.)CRISIL - AMFI Liquid Fund  Performance Index (Rs.) #
June 23, 2017 to June 30, 2017 (7 Days)*5.99%6.41%6.48%NA10,01110,01210,012NA
June 15, 2017 to June 30, 2017 (15 Days)*5.97%6.46%5.77%NA10,02510,02710,024NA
May 31, 2017 to June 30, 2017 (1 Month)*6.00%6.62%5.73%6.46%10,04910,05410,04710,053
June 30, 2016 to June 30, 2017 (1 year)**6.22%6.86%6.53%6.83%10,62210,68610,65310,683
June 30, 2014 to June 30, 2017 (3 years)**7.35%7.83%7.57%7.88%12,37312,54112,45112,558
June 29, 2012 to June 30, 2017 (5 years)**7.92%8.25%7.36%8.37%14,64814,87214,26614,954
Since Inception (07th April 2006) **7.63%7.48%6.30%7.70%22,84622,50219,87123,019
NA - Data not available ^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option.
@ shows the current value of Rs 10,000/- invested at the beginning of a given period.
* Simple Annualized ** Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR).
# For methodology please refer the bottom of this page.
Quantum Mutual Fund since its launch did not have Separate Plans for receiving any investment applications either through distributors or directly from investors till March 31, 2017. Effective from April 1, 2017, the Existing Plan has been classified as Direct Plan and a new Regular Plan has been launched to receive the investment applications through distributors, with both the plans having different expenses structure. The performance details provided herein is of the plan now classified as Direct Plan as stated above. Different Plans shall have different expense structure.

This fund is now managed by Mr. Pankaj Pathak from March 1, 2017 onwards. Click here for performance details of other funds managed by him.



NAV chart- Quantum Liquid Fund

Past Performance may or may not be sustained in the future
Note: NAV & Benchmark data considered for above graph are quarter end data.

Performance and NAV chart of Quantum Gold Fund (QGF)
Mr Chirag Mehta is the Fund Manager effective from May 01,2009.
PeriodQGF ^Domestic Price of Gold (%) Value of investment of Rs. 10,000@
Scheme (Rs.)Domestic Price of Gold (Rs.)
June 30, 2016 to June 30, 2017 (1 year)-10.57%-9.42%8,9439,058
June 30, 2014 to June 30, 2017 (3 years)-0.21%0.93%9,93610,282
June 29, 2012 to June 30, 2017 (5 years)-1.65%-0.59%9,2009,709
June 30, 2010 to June 30, 2017 (7 years)5.05%6.16%14,12115,200
Since Inception (22nd February 2008)8.74%9.52%21,91023,432
^ Past performance may or may not be sustained in the future. Load is not taken into consideration.
@ shows the current value of Rs 10,000/- invested at the beginning of a given period. Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR).
The Scheme being Exchange Traded Fund has one plan to invest through stock exchange and having a single expense structure.

This fund is managed by Chirag Mehta. Click here for performance details of other funds managed by him.


NAV chart- Quantum Gold Fund

Past Performance may or may not be sustained in the future
Note: NAV & Benchmark data considered for above graph are quarter end data.

Performance and NAV chart of Quantum Nifty ETF Fund (QNF)
Mr Hitendra Parekh is the Fund Manager effective from July 10, 2008.
PeriodQNF ^Nifty 50 Total Return Index Returns S&P BSE 30 TRI ReturnsValue of investment of Rs. 10,000@
Scheme (Rs.)Nifty 50 Total Return Index (Rs.) S&P BSE 30 TRI  (Rs.) 
June 30, 2016 to June 30, 2017 (1 year)15.98%16.28%15.95%11,59811,62811,595
June 30, 2014 to June 30, 2017 (3 years)8.86%9.06%8.29%12,90212,97612,703
June 29, 2012 to June 30, 2017 (5 years)13.62%13.86%13.80%18,95219,15119,098
June 30, 2010 to June 30, 2017 (7 years)9.73%9.99%9.91%19,16419,48619,384
Since Inception (10th July 2008)11.01%10.96%10.90%25,54425,45125,333
^ Past performance may or may not be sustained in the future. Load is not taken into consideration.
@ shows the current value of Rs 10,000/- invested at the beginning of a given period. Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR).
The Scheme being Exchange Traded Fund has one plan to invest through stock exchange and having a single expense structure.

This fund is managed by Hitendra Parekh.


NAV chart- Quantum Nifty ETF Fund

Past Performance may or may not be sustained in the future
Note: NAV & Benchmark data considered for above graph are quarter end data.

Performance and NAV chart of Quantum Tax Saving Fund (QTSF)
Mr Atul Kumar is the Fund Manager effective from December 10,2008
Mr Sorbh Gupta is the Associate Fund Manager effective from October 1,2016.
PeriodQTSF ^S&P BSE- 30 TRI Returns S&P BSE Sensex Returns CRISIL - AMFI ELSS Fund Performance Index #Value of investment of Rs. 10,000@
Scheme (Rs.)S&P BSE- 30 TRI  (Rs.) S&P BSE Sensex (Rs.) CRISIL - AMFI ELSS Fund Performance Index (Rs.) #
June 30, 2016 to June 30, 2017 (1 year)16.54%15.95%14.53%19.99%11,65411,59511,45311,999
June 30, 2014 to June 30, 2017 (3 years)11.97%8.29%6.75%12.59%14,04312,70312,16714,277
June 29, 2012 to June 30, 2017 (5 years)17.30%13.80%12.13%18.35%22,22319,09817,74023,242
June 30, 2010 to June 30, 2017 (7 years)13.28%9.91%8.29%12.70%23,95719,38417,46923,101
Since Inception (23rd December 2008)20.40%16.28%14.58%19.73%48,70036,17531,92246,410
^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option.
@ shows the current value of Rs 10,000/- invested at the beginning of a given period. Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR).
# For methodology please refer the bottom of this page.
Quantum Mutual Fund since its launch did not have Separate Plans for receiving any investment applications either through distributors or directly from investors till March 31, 2017. Effective from April 1, 2017, the Existing Plan has been classified as Direct Plan and a new Regular Plan has been launched to receive the investment applications through distributors, with both the plans having different expenses structure. The performance details provided herein is of the plan now classified as Direct Plan as stated above. Different Plans shall have different expense structure.

The Scheme is co-managed by Atul Kumar and Sorbh Gupta. Click here for performance details of other funds managed by him.


NAV chart- Quantum Tax Saving Fund

Past Performance may or may not be sustained in the future
Note : NAV & Benchmark data considered for above graph are quarter end data.

Performance and NAV chart of Quantum Equity Fund of Funds (QEFOF)
Mr Chirag Mehta is the Fund Manager effective from November 01,2013.
PeriodQEFOF ^S&P BSE- 200 Returns (%) S&P BSE Sensex Returns (%) Value of investment of Rs. 10,000@
Scheme (Rs.)S&P BSE 200 Index  (Rs.) S&P BSE Sensex (Rs.) 
June 30, 2016 to June 30, 2017 (1 year)20.41%18.08%14.53%12,04111,80811,453
June 30, 2014 to June 30, 2017 (3 years)14.09%9.91%6.75%14,85513,28012,167
June 29, 2012 to June 30, 2017 (5 years)18.86%14.16%12.13%23,74819,40617,740
June 30, 2010 to June 30, 2017 (7 years)13.07%9.14%8.29%23,64318,45717,469
Since Inception (20th July 2009)15.47%10.70%9.35%31,40022,44620,355
^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option. @ shows the current value of Rs 10,000/- invested at the beginning of a given period.
Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR).
Quantum Mutual Fund since its launch did not have Separate Plans for receiving any investment applications either through distributors or directly from investors till March 31, 2017. Effective from April 1, 2017, the Existing Plan has been classified as Direct Plan and a new Regular Plan has been launched to receive the investment applications through distributors, with both the plans having different expenses structure. The performance details provided herein is of the plan now classified as Direct Plan as stated above. Different Plans shall have different expense structure.

This fund is managed by Chirag Mehta. Click here for performance details of other funds managed by him.



NAV chart- Quantum Equity Fund of Funds

Past Performance may or may not be sustained in the future
Note: NAV & Benchmark data considered for above graph are quarter end data.

Performance and NAV chart of Quantum Gold Savings Fund (QGSF)
Mr Chirag Mehta is the Fund Manager effective from May 19,2011.
PeriodQGSF ^Domestic Price of Gold Value of investment of Rs. 10,000@
Scheme (Rs.)Domestic Price of Gold (Rs.) 
June 30, 2016 to June 30, 2017 (1 year)-6.38%-9.42%9,3629,058
June 30, 2014 to June 30, 2017 (3 years)-0.82%0.93%9,75610,282
June 29, 2012 to June 30, 2017 (5 years)-1.83%-0.59%9,1169,709
Since Inception (19th May 2011)3.07%4.58%12,03313,154
^ Past performance may or may not be sustained in the future. Load is not taken into consideration. @ shows the current value of Rs 10,000/- invested at the beginning of a given period.
Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR).
Quantum Mutual Fund since its launch did not have Separate Plans for receiving any investment applications either through distributors or directly from investors till March 31, 2017. Effective from April 1, 2017, the Existing Plan has been classified as Direct Plan and a new Regular Plan has been launched to receive the investment applications through distributors, with both the plans having different expenses structure. The performance details provided herein is of the plan now classified as Direct Plan as stated above. Different Plans shall have different expense structure.

This fund is managed by Chirag Mehta. Click here for performance details of other funds managed by him.


NAV chart- Quantum Gold Savings Fund

Past Performance may or may not be sustained in the future
Note: NAV & Benchmark data considered for above graph are quarter end data.

Performance and NAV chart of Quantum Multi Asset Fund (QMAF)
Mr Chirag Mehta, Mr Nilesh Shetty are the Fund Manager effective from July 11, 2012.
PeriodQMAF ^CRISIL Composite Bond Fund Index (40%) + S&P BSE Total Return Index (40%) + Domestic price of Gold (20%)Value of investment of Rs. 10,000@
Scheme (Rs.)CRISIL Composite Bond Fund Index (40%) + S&P BSE Total Return Index (40%) + Domestic price of Gold (20%) (Rs.)
June 30, 2016 to June 30, 2017 (1 year)10.20%10.36%11,02011,036
June 30, 2014 to June 30, 2017 (3 years)8.66%8.23%12,83112,681
Since Inception (11th July 2012)10.33%9.74%16,31215,876
^ Past performance may or may not be sustained in the future. Load is not taken into consideration. @ shows the current value of Rs 10,000/- invested at the beginning of a given period.
Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR). The Scheme has been in existence for more than 1 and 3 year but has not yet completed 5 years period from inception.
Quantum Mutual Fund since its launch did not have Separate Plans for receiving any investment applications either through distributors or directly from investors till March 31, 2017. Effective from April 1, 2017, the Existing Plan has been classified as Direct Plan and a new Regular Plan has been launched to receive the investment applications through distributors, with both the plans having different expenses structure. The performance details provided herein is of the plan now classified as Direct Plan as stated above. Different Plans shall have different expense structure.

This fund is co-managed by Chirag Mehta and Nilesh Shetty. Click here for performance details of other funds managed by him.



NAV chart- Quantum Multi Asset Fund

Past Performance may or may not be sustained in the future
Note: NAV & Benchmark data considered for above graph are quarter end data.

Performance and NAV chart of Quantum Dynamic Bond Fund (QDBF)
Mr Pankaj Pathak is the Fund Manager effective from March 01,2017.
PeriodQDBF ^CRISIL Composite Bond Fund Index CRISIL 10 Year Gilt IndexValue of investment of Rs. 10,000@
Scheme (Rs.)CRISIL Composite Bond Fund Index (Rs.)CRISIL 10 Year Gilt Index (Rs.)
June 30, 2016 to June 30, 2017 (1 year)15.39%11.47%11.69%11,53911,14711,169
Since Inception (19th May 2015)12.32%10.30%10.07%12,79412,31212,256
^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option. @ shows the current value of Rs 10,000/- invested at the beginning of a given period.
Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR). The Scheme has been in existence for more than 1 year but has not yet completed 3 years period from inception.
Quantum Mutual Fund since its launch did not have Separate Plans for receiving any investment applications either through distributors or directly from investors till March 31, 2017. Effective from April 1, 2017, the Existing Plan has been classified as Direct Plan and a new Regular Plan has been launched to receive the investment applications through distributors, with both the plans having different expenses structure. The performance details provided herein is of the plan now classified as Direct Plan as stated above. Different Plans shall have different expense structure.

This fund is now managed by Mr. Pankaj Pathak from March 1, 2017 onwards. Click here for performance details of other funds managed by him.


NAV chart- Quantum Dynamic Bond Fund

Past Performance may or may not be sustained in the future
Note: NAV & Benchmark data considered for above graph are quarter end data.

Things to know before you sign the dotted line

For an investment experience to be truly satisfying it is important that the investor has basic understanding of features of the scheme being chosen, how it works to generate returns and is aware of risks attached to the investment. This is very important for avoiding mismatch in product chosen vis-à-vis your investment need. But above all it will give investors peace of mind as they are equipped with information to make correct & timely decisions with their investment.
As a Quantum investor here is a general list of what you should have knowledge of while choosing our schemes:
  Expense ratio and exit load of the chosen scheme. Make sure you know how exit load would apply (if in case it would) while redeeming your investment, Cutoff time for NAV applicability during subscription, redemption, switch transactions and the turnaround time for processing these transactions. NAV affects the number of units you’d be allotted during subscription and investment value on redemption.
  Tax implications on different schemes as may be applicable on your returns from the investment.
  Nature and extent of risk attached to the scheme chosen. Understand that mutual funds are pass through medium which invest money pooled from investors in market securities and pass on whatever returns are generated back to investors after deducting their fees (expense ratio). Thus mutual fund returns are not guaranteed.
The product label of schemes denotes their comparative risk. Investors should be aware of their risk appetite which is usually a function of their investment goal and time horizon, and choose funds whose investment objective is suited to help them achieve their goal.
  Policies and procedures of Grievance Redressal and Dispute Resolution at Quantum Mutual Fund.

The offer documents of a mutual fund scheme – Scheme Information Document, Statement of Additional Information and Key Information Memorandum contain information on all aspects relating to the scheme that an investor should have awareness of. Kindly go through it before making investment. Our executives would be glad too to guide investors whenever assistance is required.

Product Labeling

The riskometer in the Product Label depicts the degree of risk your principal is exposed to when it is invested in a particular scheme. It gives a quick-view of the risk level of your investment.

Product Labeling
Name of the SchemeThis product is suitable for investors who are seeking*Riskometer
Quantum Long Term Equity Fund
(An Open-ended Equity Scheme)
• Long term capital appreciation

• Investments in equity and equity related securities of companies in S&P BSE 200 index.

Investors understand that their principal will be at Moderately High Risk
Quantum Liquid Fund
(An Open- ended Liquid Scheme)
• Income over the short term

• Investments in debt / money market instruments.

Investors understand that their principal will be at Low risk
Quantum Gold Fund
(An Open-ended Exchange Traded Fund- Gold)
• Long term returns

• Investments in physical gold.

Investors understand that their principal will be at Moderately High Risk
Quantum Nifty ETF Fund
(An Open- ended Exchange Traded Fund)
• Long term capital appreciation

• Investments in equity and equity related securities of companies in Nifty 50 Index.

Investors understand that their principal will be at Moderately High Risk
Quantum Tax Saving Fund
(An Open-ended Equity Linked Savings Scheme)
• Long term capital appreciation

• Investments in equity and equity related securities of companies in S&P BSE 200 index and to save tax u/s 80 C of the Income Tax Act. Investments in this product are subject to lock in period of 3 years.

Investors understand that their principal will be at Moderately High Risk
Quantum Equity Fund of Funds
(An Open-ended Equity Fund of Funds Scheme)
• Long term capital appreciation

• Investments in portfolio of open-ended diversified equity schemes of mutual funds registered with SEBI whose underlying investments are in equity and equity related securities of diversified companies.

Investors understand that their principal will be at Moderately High Risk
Quantum Gold Savings Fund
(An Open-ended Fund of Fund Scheme)
• Long term returns

• Investments in units of Quantum Gold Fund - Exchange Traded Fund whose underlying investments are in physical gold.

Investors understand that their principal will be at Moderately High Risk
Quantum Multi Asset Fund
(An Open-ended Fund of Funds Scheme)
• Long term capital appreciation and current income

• Investments in portfolio of schemes of Quantum Mutual Fund whose underlying investments are in quity and equity related securities of companies, debt and money market instruments and physical gold.

Investors understand that their principal will be at Moderately High Risk
Quantum Dynamic Bond Fund
(An Open-ended Debt Scheme with Defined Credit Exposure and Dynamic Maturity Profile)
• Regular income over short to medium term and capital appreciation

• Investment in Debt / Money Market Instruments / Government Securities.

Investors understand that their principal will be at Moderate Risk
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


Risk Factors: Mutual fund investments are subject to market risks read all scheme related documents carefully.
Risk Factors and Disclaimer:-
This view expressed in this article does not constitute any guidelines or recommendation on any course of action to be followed by the reader. The views are based on the publicly available information, internally developed data and other sources believed to be reliable. The views are meant for general reading purpose only and are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the readers. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and opinions given fair and reasonable. Recipients of this information should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments. None of The Sponsor, The Investment Manager, The Trustee, their respective directors, employees, affiliates or representatives shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in this document.

Please visit - www.QuantumMF.com to read scheme specific risk factors. 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.

CRISIL AMFI MF Performance Indices Methodology:
CRISIL - AMFI MF Performance Indices seeks to track the performance of the mutual funds across various categories. CRISIL - AMFI Large Cap Fund Performance Index is based on large cap funds which are ranked under CRISIL Mutual Fund ranking are part of the index. CRISIL - AMFI ELSS Fund Performance Index is based on ELSS funds which are ranked under CRISIL Mutual Fund ranking are part of the index. CRISIL - AMFI Liquid Fund Performance is based on the liquid funds which are ranked under CRISIL Mutual Fund ranking are part of the index. Total Return Index, is adjusted for corporate action in the mutual fund schemes. Index portfolio is marked-to-market on a daily basis using adjusted Net Asset Value (NAV). Funds which are ranked under CRISIL Mutual Fund ranking are part of the index. Eligibility of funds are based on minimum NAV history and a minimum AUM. Index values are calculated on daily basis using chain-link method. Asset weighted returns and quarterly rebalancing is carried out. CRISIL Limited (CRISIL) has taken due care and caution in preparing this performance based on the information obtained by CRISIL from sources which it considers reliable. CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / information and is not responsible for any errors or omissions or for the results obtained from the use of Data / information. Please refer the website for methodology and disclaimer.
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.