Posted On Tuesday, Feb 23, 2021
The following illustration is to explain how equity investments have potential to help in coping with inflation. On average, cost of consumption grows at a CAGR of approx. 4%. If you solely invest in bank deposits, you fall relatively short of meeting the rising expenses.
|SBI 1 year Deposit||135.34||186.88||6.66%|
On the other hand, the returns from equities outperform the rate of inflation in long term. However, equity investments are subject to market uncertainty.
Balance risk with returns by investing in the Quantum Multi-Asset Fund of Funds
Launched in July 2012, over the years QMAFOF has successfully delivered risk-adjusted returns. The fund has stood the test of time with long term performance across market cycles.
|Performance of the Scheme||Direct Plan - Growth Option|
|Quantum Multi Asset Fund of Funds - Direct Plan - Growth Option|
|Current Value ₹10,000 Invested at the beginning of a given period|
(11th Jul 2012)
|Jan 31, 2014 to Jan 29, 2021 (7 years)||9.88%||11.63%||19,343||21,596|
|Jan 29, 2016 to Jan 29, 2021 (5 years)||9.82%||12.60%||15,981||18,114|
|Jan 31, 2018 to Jan 29, 2021 (3 years)||8.01%||12.12%||12,599||14,091|
|Jan 31, 2020 to Jan 29, 2021 (1 year)||12.75%||16.16%||11,271||11,612|
Even in the most conservative investment portfolio, it is suggested to allocate a portion of assets to equities to diversify your portfolio from inflation risks. Currently there might be a little uncertainty around equity markets, but that’s the very nature of this asset class. A simple solution to that is to invest for long-term and repose faith in India’s growth story. Investment in equity via mutual funds needs time to climb up and for returns to compound over a long period. So if you are one of those investors who are not sure what should be your ideal equity allocation, then you can gradually start off with QMAFOF and give your money the potential to grow with some equity exposure. The unique combination of QMAFOF portfolio brings together the equity assets with other relatively less volatile asset classes in the portfolio. The negative correlation between these asset classes & regularly rebalancing your portfolio will diversify your investment by minimizing the impact of losses driven by collapsing markets. With QMAFOF both asset allocation and asset rebalancing are taken care of.
Start balancing Risk with Diversification. Start investing in Quantum Multi Asset Fund of Funds.
**Note: The comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to invest. Investments in Quantum Multi Asset Fund of Funds / mutual funds should not be construed as a promise, guarantee on or a forecast of any minimum returns. Unlike fixed deposit with Banks there is no capital protection guarantee or assurance of any return in Quantum Multi Asset Fund of Funds / mutual funds investment. Investment in Quantum Multi Asset Fund of Funds as compared to Fixed Deposits carry moderately high risk, different tax treatment and subject to market risk and any investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor.
|Name of the Scheme||This product is suitable for investors who are seeking*||Riskometer|
|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
Investors understand that their principal will be at Moderately 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
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. 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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