Diversify Your Team for a Winning Mutual Fund Portfolio

Posted On Wednesday, Apr 06, 2016

The World Cup is finally over! And life is back to its normalcy before yet another cricket extravaganza will take the nation by storm. The dramatic win in the last few moments of the match, helped the “Champions” create history, yet again. But what came as a pleasant surprise was the winning captain’s speech. While talking about what brought the team together and what made them special, he said “I’ve said we have 15 match-winners. Nobody gave us a chance but every game somebody stepped up and took responsibility.” Basically exhorting the virtues of teamwork, rather than relying on one star player to win matches.

We agree, it is very important for a team to have many good players rather than just one excellent player. In case of this team, the one star we were looking forward to seeing - the one who plays his extravagant brand of cricket with a lot of flair - actually didn’t do much (see, stars don’t always shine, but the team does ? ). Only when almost everyone thought the game has gone out of their hands, another member of the team played unbelievably; to march towards a glorious win.

Just like cricket where there are separate elements of batting and bowling - but everyone plays together in one team, working towards a common goal (read diversification). It is also exactly how your investment portfolio should work, especially when it comes to a ‘risky’ asset class like equity. It is important to have an allocation to equity as it plays a crucial role in long term wealth creation. Investors who want to be in equities but are besieged by the wide array of choices to gain from the long term potential of equity investments and at the same time want to diversify their equity portfolio can look at an equity fund of funds. A Fund Manager uses all his expertise to choose some of the best performing equity funds of his choice and will indirectly invest your money in these funds.

It is very important for investors to select a fund with long term track record, an established research and a well- defined investment process.

Quantum Equity Fund of Funds (QEFOF) is one such scheme! QEFOF invests in different equity schemes of other mutual funds. Not necessary these funds follow the value style of investing like Quantum Long Term Equity Fund (QLTEF). They might follow the growth style of investing, thus having the potential to make the most of the rising markets.

The QEFOF offers you -
• Diligently chosen long term equity funds portfolio
• With a well-researched process of scheme selection
• Well defined process of risk controls on investing
• An aggregated holding of your investments
• A one-stop solution for all your long term equity mutual fund investments

Thus as simple as it sounds, investing in just one fund will help you diversify your equity investments and mitigate the risk factor too. Sure, the Champion team would have already applied this thumb rule to their investments already, moreover it is your turn to diversify your portfolio and win over your financial goals. We would also like you to consult your financial advisor before taking an investment related decision.

Product Labeling

Name of the Scheme & Primary BenchmarkThis product is suitable for investors who are seeking*Risk-o-meter of Scheme
Quantum Long Term Equity Value Fund

An Open Ended Equity Scheme following a Value Investment Strategy
• Long term capital appreciation

• Invests primarily in equity and equity related securities of companies in S&P BSE 200 index.
Quantum Long Term Equity Value Fund
Investors understand that their principal will be at Moderate Risk
Quantum Equity Fund of Funds

An Open Ended Fund of Funds scheme Investing in Open Ended Diversified Equity Schemes of Mutual Funds
• 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
Quantum Equity Fund of Funds
Investors understand that their principal will be at Very High Risk

* 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 / video 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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