Posted On Thursday, Oct 26, 2023
Join Chirag Mehta, CIO & Fund Manager, as he shares answers to these questions and other insights as to how Quantum’s New Fund Offering (NFO) is set to make a big difference to investor portfolio.
While relative valuations remain rich, India is in a comfortable spot due to the economic upcycle it finds itself in and strong earnings growth prospects. As such, we are bullish on Indian equities in the medium to long term.
Small cap indices and some small cap stocks are trading close to long term averages currently, However, there are pockets of value and several bottom-up stories which are not driven purely by the macroeconomic environment and would still be available at prices below the fair value. Through our research, we are confident of building a robust portfolio of 25-60 stocks at reasonable prices to translate into an upside for the portfolio.
As Small Cap universe is large and much diversified as compared to large cap universe we see many attractive investment opportunities at these prices from a long-term investment horizon perspective. Themes like Financial inclusion, transition to EVs, Import substitution, China+1, Renewable Energy are themes which we feel have good earnings potential in the medium to long term.
Equally important is evaluating the integrity and quality of the management teams within smaller companies, as these firms may encounter governance challenges due to their limited financial resources, making it difficult to attract top-tier management talent. Additionally, they might face less scrutiny from external parties. This is where Quantum Small Cap Fund can make a big difference. Our commitment to integrity dates back to 1991 at the Quantum group level. We prioritize safeguarding your investments over chasing short-term gains and prefer to avoid opportunities that could compromise your investment, even if a particular stock carries significant weight in the benchmark index.
The NFO is currently open – Take this opportunity to grow your wealth that can make a big difference to your portfolio. Don’t miss the opportunity – the NFO closes on Oct 27, 2023.
|Name of the Scheme||This product is suitable for investors who are seeking*||Riskometer of scheme|
Quantum Small Cap Fund
An Open-Ended Equity Scheme Predominantly Investing in Small Cap Stocks
• Long term capital appreciation
• Investment in Small Cap Stockx
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 product labeling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
For latest riskometer, investors may refer to the Monthly Portfolios disclosed on the website of the Fund www.QuantumAMC.com
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.
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