Chinese Stock Market Fall: What to do

Posted On Wednesday, Aug 26, 2015

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If you try to visualize the popular nursery rhyme ringa ringa roses, you can actually imagine each of the kids as representatives of major countries around the globe falling together. With the world markets taking a nosedive, investors tend to start worrying. While the epicenter of this fall, the Chinese markets are still trembling, the Indian markets are slowly balancing their act. Let’s take a look at how some major global markets reacted on Chinese fall...

CountryMarket% down
IndiaS&P BSE Sensex-5.94%
USADow, Nasdaq-3%
JapanNikkei-4.61%
Hong KongH.S.I-5.17%
ChinaShanghai Stock Exchange Composite Index (SHCOMP)-8.46%


The above are the closing figures of the respective markets on Friday, 21st August, 2015 (for USA) and Monday (for India, Japan, Hong Kong, China).

But this is no surprise. It is the very nature of the markets to surge on a positive note and plunge when things turn dark. While Equity is by far one of the most risky asset class, it has the potential to give high returns with high risk over the long term.

Yes, over the long term that’s the key word here. The volatility in the market is astonishing because it was just a few months ago, in March 2015 that the markets had breached the 30,000 mark (intra day) and has now fallen by almost 5,000 points in a span of 5 months. Investing for long term is the solution to address this volatility in the market. Therefore investors who have a relatively high risk appetite and tend to stay invested for a long term can look at a equity fund that could diversify their investments in equity markets.

Quantum Long Term Equity Fund (QLTEF) is one such equity fund that will help investors to diversify their money in equity markets by following a disciplined research and investment process.

QLTEF aims to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the S&P BSE 200 Index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets.

Below is the past performance of QLTEF.


QUANTUM LONG TERM EQUITY FUND June 30 2009 to
June 30 2010
June 30 2010 to
June 30 2011
June 30 2011 to
June 29 2012
June 29 2012 to
June 28 2013
June 28 2013 to
June 30 2014
June 30 2014 to
June 30 2015
Since Inception*
Scheme Return49.71%8.97%0.05%9.76%44.50%9.74%15.59%
Value Of Rs.10,000/- Invested In Scheme At The End Of Each Period14,971.0010,897.0010,005.0010,976.0014,450.0010,974.0038,520.00
Benchmark Return - BSE 30 TRI24.16%7.98%-6.01%13.15%32.87%10.96%12.31%
Value Of Rs.10,000/- Invested In Benchmark BSE 30 TRI At The End Of Each Period12,416.0010,798.009,399.0011,315.0013,28711,096.0029,456.00
Additional Benchmark Return - BSE Sensex22.13%6.47%-7.51%11.28%31.03%9.31%10.68%

Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option. Returns up to 1 year period are Absolute Returns. Returns greater than 1 year period are compounded annualized (CAGR).
* Inception Date: March13, 2006. Since inception returns are calculated on NAV of Rs. 10 invested at inception.


To see the performance of all the other schemes Mr. Atul Kumar (Fund Manager, QLTEF) manages click here.

Investors who look at long term view with a moderately high risk appetite can invest in QLTEF.

The story continues...

Like every coin has two sides, markets have two types of investors; if investors in pure equity funds are risk takers we also have the risk averse kinds.

These are the people who think taking risk is risky in itself! They would always want to invest their money in funds that balance out risk. These investors could look at funds which diversifies risks across asset classes.

Quantum Multi Asset Fund (QMAF) uses diversification as its key strategy to invest across multiple asset classes, from a combined portfolio of equity, debt / money markets and gold schemes of Quantum Mutual Fund. Asset allocation and sound portfolio construction are excellent tools for addressing the volatility of investment markets.

This is the advantage of investing in a multi asset fund of which the asset allocation is based on time to time performance of the underlying asset classes. QMAF constantly monitors assets and performs constructive rebalancing of the portfolio according to the changing market conditions. Therefore when the equity markets were not performing well and gold markets were in green the QMAF strategically moved its assets from equities.

Below is the past performance of QMAF.


QUANTUM MULTI ASSET FUNDJune 29 2012 to
June 28 2013
June 28 2013 to
June 30 2014
June 30 2014 to
June 30 2015
Since Inception*
Scheme Return5.43%20.58%7.54%11.90%
Value Of Rs.10,000/- Invested In Scheme At The End Of Each Period10,543.0012,058.0010,754.0013,671.00
Benchmark Return - [Crisil Composite Bond Fund Index (40%)+S&P BSE Sensex Total Return Index (40%)+Domestic Price Of Gold (20%)]6.49%17.57%8.64%10.90%
Value Of Rs.10,000/- Invested In Benchmark [Crisil Composite Bond Fund Index (40%)+S&P BSE Sensex Total Return Index (40%)+Domestic Price Of Gold (20%)] At The End Of Each Period10,649.0011,757.0010,864.0013,601.00

Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option. Returns up to 1 year period are Absolute Returns. Returns greater than 1 year period are compounded annualized (CAGR).
* Inception Date: July 11, 2012. Since inception returns are calculated on NAV of Rs. 10 invested at inception.


To see the performance of all the other schemes Mr. Chirag Mehta (Fund Manager, QMAF) manages click here .

Investors who are risk averse and are looking for a diversified investment option can invest in QMAF.

Whichever type of investor you may be, the key to success in investing lies in staying calm in periods of turbulence and taking actions that matches to your risk profile and financial goals.




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 Multi Asset Fund of Funds

(An Open Ended Fund of Funds Scheme Investing in schemes of Quantum Mutual Fund)
• Long term capital appreciation and current income

• Investments in portfolio of schemes of Quantum Mutual Fund whose underlying investments are in equity , debt / money market instruments and gold
Quantum Multi Asset Fund of Funds
Investors understand that their principal will be at Moderately 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. Please visit – www.quantumamc.com/disclaimer to read scheme specific risk factors.

Above article is authored by Quantum.

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