Germany or Argentina - whose strategy would you follow for your investments?

Posted On Monday, Jul 14, 2014

Just last night the major extravaganza of world football came to a thrilling end, when team Germany bagged the coveted world-cup trophy after their hard-fought match against Argentina. Both teams were equally capable of winning the final, so what made Germany better than Argentina?

It’s their approach!

While Argentina were, in hindsight, messy by being over-reliant on one player, Germany had its entire team to back its win. So while the world-cup is over and the match is still fresh in our minds, do we get to learn from it? And can we apply this to the investment world?

Yes. As far your investments are concerned, the different approaches of the two teams do teach us a lesson that will help us get closer to our goals – financial goals. It teaches us the important rule of diversification within our portfolio. Just like team Germany has many strong players, we should invest in a fund that will diversify our equity investments among different equity schemes.

Quantum Equity Fund of Funds* is your winning team!

Quantum Equity Fund of Funds is a diversified equity fund of funds scheme that will invest your money in 5-10 schemes of other mutual funds. Quantum uses its expertise in identifying schemes and fund houses for investments. Our expertise reduces the risk of wrong selection of funds. Investing in the Quantum Equity Fund of Funds is also convenient, as you don’t have to invest in multiple schemes to diversify your equity investments.

Here’s why you should consider allocating a part of your savings to the Quantum Equity Fund of Funds:

5 reasons to invest in Quantum Equity Fund of Funds:

•  By investing in Quantum Equity Fund of Funds you don't have to worry about which equity fund you should invest in to give your money equity exposure. It will automatically invest your money in suitable diversified equity funds.
•  Our processes ensure that we rebalance our portfolio adequately, giving you what is, according to us, the suite of the finest equity funds in India.
•   Quantum Equity Fund of Funds invests in not just equity but diversified equity funds that minimize the risk of investing in equities, as compared to sector funds.
•  You can start your investments with an amount as low as Rs. 500.
•  You can hold units in Demat mode too.

Here is a pictorial representation of the stringent investment process that helps Quantum Equity Fund of Funds select the best funds to add to your portfolio.

Fund Selection Process

Quantum Equity Fund of Funds selection Process

Thereafter, the short-listed funds are evaluated based on qualitative criteria. The qualitative parameters will largely judge the fund on the parameters like fund house’s investment systems and processes, consistency in characteristics of its portfolio among others. Funds that emerge as the top performers shall form part of the final portfolio. However, you are requested to note that the Quantum Equity Fund of Funds will be treated as a Non-equity scheme (funnily enough, we hope that this oversight is corrected with every budget, but this is yet to come through) from a taxation perspective. All taxes for non-equity schemes shall therefore apply.

Thus, it is up to you to decide if you wish to invest in team Argentina and depend on one player or simply invest in team Germany and increase your chances to win by diversification.

*Product Labeling

Name of the SchemeThis product is suitable for investors who are seeking*
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.
• High Risk (BROWN)
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Risk is represented as:
(BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

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. 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.

Risk Factors: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Please visit – 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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