Now, A Diversified Portfolio at your FingerTips

Posted On Wednesday, Jul 20, 2022


Equity markets moving up and down? Confused about how and where to invest? Don’t worry, we have got you covered! While it’s not easy to predict the near-term market levels and the impact on your investments, what’s within your control is staying invested for the long term with a diversified portfolio using a prudent Asset Allocation.


Remember, asset allocation helps you:


- Reduce downside risks.

- Tackle fluctuating market cycles over the long term.

- Achieve your long-term goals.


A simple and easy solution to start with is Quantum’s tried and tested 12-20-80 Asset Allocation Strategy that can help you safeguard your investments and provide the potential for risk-adjusted returns over the long term.


In our continuous endeavour to simplify investing and create a one stop shop for all your investing needs, we bring to you our handy Asset Allocator tool. Now in just a few clicks you can balance/ rebalance your portfolio to have a diversified basket of investments in Quantum’s products across all three asset classes of Equity, Debt and Gold.



What’s more, with the launch of the Quantum Nifty 50 ETF Fund of Fund, you can choose whether you prefer an actively managed portfolio or a passively managed one.



Asset Allocation Calculator Demo Video





Simple Steps to Build Your 12:20:80 Portfolio

 


Step 1: Choose the Investing style You want to Adopt


If you are someone who wants the potential to beat the market, greater diversification or fund manager involvement, you might choose to go for active investments. On the other hand, if you prefer to keep things simple and generate returns in tandem with the benchmark index, building a portfolio of passive funds might suit you better. You get the flexibility to choose how you want to ride your investment journey. Remember that the NFO is currently on – don’t miss the chance if you want to adopt the passive approach. 



Step 2: Enter the Total Amount You Intend to Invest 


Next, enter the total investible corpus that you intend to invest. As a general rule, your investment should not be what is left over after your monthly expenses, but should be a fixed sum set aside with a specific financial goal in mind. 



Step 3: Build your Safety Block (Emergency Corpus) with Liquid Funds

Next, enter your monthly expenses and click on Calculate. We suggest that you set aside 12 months of your monthly expenses to help you tide over any uncertainties.


The tool will calculate this as Emergency Funds which forms the foundation as your portfolio. Your investment will be allocated in Quantum Liquid Fund which prioritizes safety and liquidity over returns. If you believe that you would like to have a larger backup for financial emergencies depending on your risk appetite and your financial obligations, simply change the number of months.



Step 4: Build the Portfolio Diversifying Block with Gold 


After deducting the Emergency Corpus from your indicated investible corpus, the tool will allocate the balance into Gold and Equity in the ratio of 20-80. The 20% portion allocation to gold will then be allocated to Quantum Gold Savings Fund - Gold in your portfolio helps offset risks better during periods of macroeconomic uncertainty due to the inverse relationship with equities. At any point, you can change the percentage to gold if required to suit your existing portfolio or goals better.



Step 5: Allocate the balance 80% to the Growth Block


The balance of your investible corpus i.e 80% gets diversified into long-term opportunities using a diversified equity bucket. The funds get allocated across three different equity funds - Quantum Equity Fund of Funds, (70%) Quantum India ESG Equity Fund (15%) and the Quantum Long Term Equity Value Fund (15%) with varying investing styles. 


If you choose a passive allocation, allocate 85% in the NFO - the Quantum Nifty 50 ETF Fund of Fund and initiate an SIP (Systematic Investment Plan) or lumpsum during the NFO period, and the balance of 15% in Quantum India ESG Equity Fund.



Step 6: Get an Overview of Your Suggested Allocation


Once you have entered your preferences, click on the Calculate button


You can see a quick snapshot of your suggested allocation with the flexibility to add, switch and personalize as per your investment requirements and risk appetite.


The tool also calculates the since inception returns for your suggested allocation. Through the 12:20:80 portfolio, a diversified portfolio, you get the potential to lower downside risks during periods of uncertainty. 



So, check out the asset allocation tool today and build your portfolio in just a few clicks. Personalize your investments the way you want and just focus on strengthening your investment journey to build long term goals.



Related Articles
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Gear up for Growth - The Active or Passive Way
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Product Labeling
Name of the SchemeThis product is suitable for investors who are seeking*Riskometer

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


Investors understand that their principal will be at Very High Risk

Quantum India ESG Equity Fund

An Open ended equity scheme investing in companies following Environment, Social and Governance (ESG) theme

• Long term capital appreciation

•Invests in shares of companies that meet Quantum's Environment, Social, Governance (ESG) criteria.


Investors understand that their principal will be at Very High Risk

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


Investors understand that their principal will be at Very High Risk

Quantum Nifty 50 ETF

An Open Ended Scheme Replicating / Tracking Nifty 50 Index

• 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 Very High Risk

Quantum Gold Savings Fund

An Open Ended Fund of Fund Scheme Investing in Quantum Gold Fund

• 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 High Risk

Quantum Gold Fund

An Open Ended Scheme Replicating / Tracking Gold

• Long term returns

• Investments in physical gold


Investors understand that their principal will be at High Risk

Quantum Liquid Fund

An Open-ended Liquid Scheme. A relatively low interest rate risk and relatively low credit risk.

• Income over the short term

• Investments in debt / money market instruments


Investors understand that their principal will be at Low Risk

Quantum Nifty 50 ETF Fund of Fund**

An Open-ended fund of fund scheme investing in Quantum Nifty ETF

• Long term capital appreciation

• Investments in units of Quantum Nifty 50 ETF – Exchange Traded Fund


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.
The Risk Level of the Scheme in the Risk O Meter is based on the portfolio of the scheme as on June 30, 2022.

**The product labelling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio the same may vary post NFO when the actual investments are made. For latest riskometer, investors may have to refer to the Monthly Portfolios disclosed on the website of the fund www.QuantumAmc.com/ www.QuantumMF.com
Investors of Quantum Nifty 50 ETF Fund of Fund (Scheme) will bear the recurring expenses of the scheme in addition to the expenses of Quantum Nifty 50 ETF.


Potential Risk Class Matrix - Quantum Liquid Fund
Credit Risk →Relatively LowModerate (Class B)Relatively High (Class C)
Interest Rate Risk↓
Relatively Low (Class I)A-I  
Moderate (Class II)   
Relatively High (Class III)   



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.QuantumAMC.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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