New Product Labeling with effect from July 1, 2015

Posted On Friday, Jun 26, 2015

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Like any other type of investment, investing in Mutual funds has its own set of 'Risks' as well. Back in July 2013, mutual fund regulator SEBI had issued a framework on 'product labelling' with colour coding for mutual funds, in a move to help investors assess the risk associated with the schemes. The color codes depict the 'level of risk'.

However recently SEBI has done away with the colour coding of mutual fund schemes and has introduced Riskometer which will depict the level of risk through a meter. The new Riskometer will be applicable for both old and new mutual fund schemes with five levels of risks from low to high.

The mutual funds would need to mention the risk level of a scheme through a speedometer-like mechanism, while specifying whether the investment was of low or high risk in nature.

This will enable investors to understand the kind of product/scheme they are investing in and its suitability to them.

The Riskometer will indicate five level of risks – low (principal at low risk), moderately low (principal at moderately low risk, moderate (principal at moderate risk), moderately high (principal at moderately high risk) and high (principal at high risk).

SEBI has advised to the fund houses to follow the best practices guidelines issued by Association of Mutual Funds in India (AMFI) which has formulated an uniform norms for the usage of Riskometer.

Below is the revised Product Labeling of all the 9 schemes of Quantum MF for your understanding:




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 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 Tax Saving Fund
Investors understand that their principal will be at Moderately High Risk
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
Quantum Equity Fund of Funds
Investors understand that their principal will be at Very High Risk
Quantum Liquid Fund

An Open Ended Liquid Scheme
• 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 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.
Quantum Gold Savings Fund
Investors understand that their principal will be at Moderately High Risk
Quantum Gold Fund

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

• Investments in physical gold.
Quantum Gold Fund
Investors understand that their principal will be at Moderately 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 Multi Asset Fund of Funds
Investors understand that their principal will be at Moderately High Risk<
Quantum Dynamic Bond Fund

An Open Ended Dynamic Debt Scheme Investing Across Duration
• Regular income over short to medium term and capital appreciation

• Investment in Debt / Money Market Instruments / Government Securities.
Quantum Dynamic Bond Fund
Investors understand that their principal will be at Moderate Risk

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


The new Riskometer would be effective from July 1, 2015, for all existing and forthcoming schemes. We hope this pictorial meter will help you prudently decide if a particular scheme fits in your portfolio. However investors should understand the Riskometer is just the starting point for the investor as they go about deciding which fund they consider investing into. They need to also look at the actual portfolio of the fund and the manner in which the fund is managed, to get a clear idea before choosing the fund.



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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