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Answering more of your questions about our Regular Plans

Posted On Wednesday, Apr 19, 2017

1.What are the types of commissions and fees being paid to the distributors and their percentages initially and on a regular basis?
 

In the market, there are both upfront commissions and trail commissions being paid. At Quantum, there is no upfront commission being paid, only trail. This improves as the number of years that the investor remains with Quantum increases.

The commission structure for the Quantum Long Term Equity Fund and the Quantum Tax Saving Fund is:

ExpensesUpfront CommissionTrail Commission
Year 1 Year 2 Year 3 Year 4 onwards
Total Commission Paid00.15%0.20%0.25%0.15%
Borne by      
 - Regular Plan Investors00.15%0.15%0.15%0.15%
 - Quantum AMC00.00%0.05%0.10%0.00%

For Quantum Liquid Fund (QLF) commission is 0.05% and for other funds it is 0.10%.
Commissions stated are excluding service tax and any other statutory levies, which will be borne by investors of the Regular Plan and Quantum AMC as per the table above. For Regular Plan investors, any payouts above 0.15% will be borne by Quantum AMC.

2.Are commissions the same for all distributors/brokers or different?
 

Yes, at Quantum they are the same for all distributors/brokers. In keeping with our philosophy of being a low cost fund, the commission structures proposed in the above table are amongst the lowest in the industry, if not the lowest. The aim is not to make distributors rich, but to compensate them fairly for their advice and for the expenses which they may bear. Further, the distributor doesn't get rewarded if he switches investments in and out of our funds, but only if investors' savings remain with us for the long term: the distributor earns higher commission only after completion of 24 months, thereby encouraging the culture of long-term investing.

3. Are commissions covered entirely in the Total Expense Ratio of each financial year?
 

Yes, at Quantum they are covered entirely in the Total Expense Ratio of each financial year. Kindly refer to the above table for the same.

4. What is the difference in Total Expense Ratio between the Direct Plan and the Regular Plan?
 

There will be a difference of 0.15% to 0.25% as mentioned in the above table. The normal difference in Total Expense Ratio between the Direct Plan and the Regular Plan is 0.15% (i.e. Direct Plans at 1.25% and Regular Plans at 1.40%, including service tax) for the Quantum Long Term Equity & Tax Saving Funds for the first year.

5. Are the amounts of distributors’ commissions/fees and management fee etc. recovered on a daily basis or weekly basis or monthly basis or yearly basis?
 

Kindly note that the income/expenses are booked on a daily basis from the respective schemes including Saturdays/Sundays/non-working days, though the NAV of schemes are not declared on Saturdays/Sundays/non-working days. Commission is paid to the distributors at the end of the month.

6. Will the TER of a scheme remain at a particular percentage for any number of years or does it change upwards every financial year?
 

No, the TER will not change for any financial year. In fact it will become lower. At Quantum, we want to reiterate: As we grow, you will pay less. You will benefit. Click here to know more.

7. Will you be paying upfront as well as trail commissions the way some other fund houses do?
 

While we are unable to comment on the practices adopted by other fund houses, we would like to state that we will not be paying any upfront commission to the distributors but only trail commission as mentioned in the above table. For our Quantum Long Term Equity Fund (QLTEF) and Quantum Tax Saving Fund (QTSF) Regular Plan investors, any payouts above 0.15% will be borne by Quantum AMC.

8. Are the expenses deducted from the NAV on a daily / monthly / annualized basis?
 

The daily NAV is calculated post deduction of expense ratio. The expense ratio is charged to the scheme.


Product Label
Name of the SchemeThis product is suitable for investors who are seeking*Riskometer
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 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 a lock-in period of 3 years

Investors understand that their principal will be at Moderately High Risk
Quantum Long Term Equity Fund

(An open-ended equity scheme)
• Long term capital appreciation and current income

• Investments in equity and equity related securities of companies in S&P BSE 200 index
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views 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 reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. 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 views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

Mutual fund investments are subject to market risks read all scheme related documents carefully.

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.

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.