Invest without Stress - With Quantum Mutual Fund!

Posted On Monday, May 09, 2022

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Since inception, Quantum AMC has stayed true to its Vision and Mission.

OUR VISION

To be India’s most respected Mutual Fund House that always puts the Investor First and delivers sensible risk adjusted returns in the long term.


OUR MISSION

To provide Simple Investment Solutions to “Thoughtful Investors”, with Honesty, Integrity, and Transparency.


Investor interest has always been at the centre of everything that we do. At Quantum, you are not investing with an individual, you are investing with an idea that has been developed by a team that has translated into an investment process after thorough research.

Star Fund Manager vs Process Driven Approach

Ajit Dayal, Founder – Quantum Advisors Private Limited, Sponsor of Quantum Asset Management Co Ltd has often explained how having a strong investment process vis-à-vis a star fund manager can work for an AMC.

Many funds adopt the "star fund manager" approach. A specific fund manager is promoted in the media and quickly establishes the mantle of a "star". Being a "star", the fund manager begins to make unilateral decisions - like the head of the communist party, he is first amongst equals. Nothing gets done without a specific "go ahead" from the "star fund manager"

All this is fine - but what happens if the star fund manager leaves his job and joins someone else?

The investor is told not to worry because the fund house is so large, that they will replace the departed "star".

But what if the new fund manager, does not like the stocks that the old "star" had? Uh, oh.

This new star will then sell the "old" stocks" and buy "new" stocks - the ones that the new star likes. Every time a share is bought or sold - "portfolio turnover" in our financial jargon - it adds to costs.

Someone has to pay the brokerage, commission each time a stock is bought or sold.

That "someone" is you - your investment in the mutual fund.

And what if this new "star" was to leave again in three years?

You get the picture...stars come and go but your costs will stay forever.

Now you know why having an "investment philosophy" is so important.

Because when you build a team, you need to have people in that team who are believers in a particular philosophy.

Then, even if people from a team leave (and they can and do) the stocks owned in the portfolio do not change...

At Quantum Mutual Fund “schemes” are managed by experienced fund managers. Here our investments are not dependent on a single fund manager, but an entire team decides the fate/future of the fund. A research-driven approach helps us take advantage of the long-term investment opportunities that exist across various asset classes - while balancing the inherent risks of investing in an evolving market.

Our funds have low portfolio turnover. By holding stocks over a longer period, the portfolio churn is reduced. This in turn reduces the pressure on your wallet too.

Quantum has a liquidity filter of at least $1 million daily trading volume in the stocks that we own, apart from that, we do not have any market capitalization or sector bias. The core focus has always been to look for high quality stocks and add them to our fund portfolio with a predetermined Buy and Sell limit. Companies with weak corporate governance and a history of treating minority shareholders poorly do not come into our fund portfolio. When a mutual fund chooses to invest in illiquid stocks, during testing times it adds to redemption pressure which leads the NAV to drop. The fund house will not be able to sell these illiquid stocks. This will NEVER happen in the case of Quantum.

Simple Investment Solutions for Thoughtful Investors

In our effort to make investing hassle free we have over time meticulously launched 10 simple products across asset classes of equity, fixed income and gold to give you a one stop shop solution for your every financial need. We do not believe in following the NFO frenzy but only offer financial solutions that we believe are going to add value to your investment bucket.


Risk Return Graph

The above graph is for illustrative purpose to explain the concept of Risk and Returns in Quantum Mutual Fund schemes. Please review the actual returns and risk-o-meter of the respective schemes independently to make informed investment decision.



Quantum's 12:20:80 Asset Allocation Approach

Market movements are very unpredictable and for a retail investor it can be difficult to time the market. What you need is a strategic asset allocation plan, one that can help you earn risk adjusted returns over the long term and protect your investments during downturns.

We stand committed to our resolve to simplify investing for you. 12-20-80 is a simple asset allocation tried and tested strategy that you can follow to help you reach your financial goals and reduce the risk of downside.

Emergency Block: The first step in your asset allocation is to park at least 12 months of your monthly expenses in an investment vehicle like a Liquid Fund or a Savings bank account. Liquid funds generally offer high liquidity and can be accessed at any time. To maintain your emergency fund, you can use the Quantum Liquid Fund (QLF), an open-ended liquid fund that invests in government securities, certificate of deposit, commercial paper, treasury bills and AAA/A1+ rated PSU debt securities. QLF follows the SLR (Safety, Liquidity, Returns) principle and prioritizes safety and liquidity over returns. The fund helps you prepare for emergencies and offers you insta-redemption option (up to 50K) and flexibility to redeem whenever you need it.

Portfolio Diversifying Block: Next invest 20% of your investible savings in Gold. It helps you to reduce overall portfolio risk. These corrective phases are just the opportune time that you can consider investing in Quantum Gold Savings Fund and Quantum Gold Fund ETF. When Quantum launched Gold ETF in 2008, it was the lowest denomination ETF in the Indian markets at 12 grams. With rising gold prices, minimum investment in QGF has increased substantially, thus leading to high NAV. With the current change in denomination and hence the face value, the NAV of the fund has reduced proportionately to represent 0.01 grams of gold, making it more accessible for investors. Investors must make the most of low NAV and add to their Gold allocation by investing in QGF.

Growth Block: Invest the remaining 80% into a diversified portfolio of Equity funds that has the potential to help you reach your financial goals over the long term. Quantum offers an easy 70-15-15 model to diversify your equity bucket. Invest in long-term opportunities in a diversified equity basket comprising of Quantum Equity Fund of Funds, (70%) Quantum India ESG Equity Fund (15%) and the Quantum Long Term Equity Value Fund (15%). According to this strategy, you can build a portfolio that is free from any style bias or sector/theme concentration. Each equity investment within this portfolio adds a unique value to your portfolio.

Maintain a diversified equity basket with Quantum Equity Fund of Funds (QEFOF):

Understanding your need for diversification and simplifying the fund selection process, QEFOF invests your money in ~ 7-10 well-researched third-party equity schemes. The Fund Manager selects schemes with a minimum 5 years track record. Investment in QEFOF reduces the hassles of making and tracking multiple investments.

Go for a sensibly valued fund with Quantum Long Term Equity Value Fund (QLTEVF):

QLTEVF with more than 16 years of track record is dedicated to picking the best companies across market capitalisation and sectors (using a bottom-up approach) that would potentially stand to benefit from the India growth story. Thus, it makes sense to own a worthy value fund in your core mutual fund portfolio.

Strengthen your portfolio with an ESG fund:

ESG stands for the environmental, social, and governance factors that have started playing a significant role in investment processes and decision-making. The true to label ESG Fund - Quantum India ESG Equity Fund uses in-house proprietary ESG scoring metrics comprising of qualitative and quantitative parameters. We subjectively evaluate over 200 parameters and go beyond the desk to give a comprehensively researched portfolio. QESG invests in companies with a triple bottom line - Planet. People. Profits.



Asset-Allocation-Guide

Please note the above is a suggested fund allocation only and not as an investment advice / recommendation.


Invest in Quantum Mutual Fund ’s simple solutions today and sit back, relax and let your money do the work for you !




Product Labeling
   Name of the Scheme & Primary Benchmark   This 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

   Primary Benchmark: S&P BSE 500 TRI
   • 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 Very High Risk
   Quantum Tax Saving Fund

   An Open Ended Equity Linked Saving Scheme with a Statutory Lock in of 3 years and Tax Benefit
   • Long term capital appreciation

   • Invests primarily 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 lock in period of 3 years.
Quantum India ESG Equity Fund
Investors understand that their principal will be at Very High Risk
   Quantum Equity Fund of Funds

   An Open-ended Fund of Funds scheme Investing in Open Ended Diversified Equity Schemes of Mutual Funds

   Primary Benchmark: S&P BSE 200 TRI
   • 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
   Quantum India ESG Equity Fund

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

   Primary Benchmark: NIFTY100 ESG TRI
   • Long term capital appreciation

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

   Primary Benchmark: Domestic Price of Gold
   • Long term returns

   • Investments in units of Quantum Gold Fund - Exchange Traded Fund whose underlying investments are in physical gold.
Quantum Gold Savings Fund
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
Quantum Gold Savings Fund
Investors understand that their principal will be at High 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 Gold Savings Fund
Investors understand that their principal will be at Moderately High Risk
   Quantum Nifty 50 ETF

   An Open Ended Scheme Replicating / Tracking Gold
   • Long term returns

   • Investments in physical gold
Quantum India ESG Equity Fund
Investors understand that their principal will be at Very High Risk
   Quantum Liquid Fund

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

   Primary Benchmark: Crisil Liquid Fund Index
   • Income over the short term

   • Investments in debt / money market instruments
Quantum Liquid Fund
Investors understand that their principal will be at Low Risk
   Quantum Dynamic Bond Fund

   An Open-ended Dynamic Debt Scheme Investing Across Duration. A relatively high interest rate risk and relatively low credit risk
   • Regular income over short to medium term and capital appreciation

   • Investment in Debt / Money Market Instruments / Government Securities
Quantum India ESG Equity Fund
Investors understand that their principal will be at Low to Moderate 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 scheme Risk O Meter is basis it's portfolio as on April 30, 2022.
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)   

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

Above article is authored by Quantum.

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