Quantum's Roadmap for Expense Ratios

Posted On Monday, Feb 06, 2017


In keeping with our ethos of doing what is best for investors, Quantum Mutual Fund announces a roadmap for a drop in expense ratios of its funds. This is a reflection of our commitment to investors of keeping our costs low and passing on the benefits of higher Assets Under Management (AUM) to our investors.

Since our inception, Quantum has always been focussed on keeping costs low for investors. As we continue to deliver performance and reach out to more people, our Assets Under Management (AUM) will surely grow. A nice thing about running a mutual fund is that as its assets under management grow, it typically doesn't need to increase its costs by the same proportion. This means revenues grow more than expenses, and profits go up. So the fund house is left with two choices:

1. Keep all the new profits
2. Share those profits with you, our investors.

Because we view our investors as partners, we have always chosen to do the latter (no surprises there!): when we launched the Quantum Long Term Equity Fund in 2006, it carried an expense ratio of 2.25% (Gross of Tax). As we have grown over the years, we have brought that down to its current 1.25% (Gross of Tax, 1.09% Net of Tax).

We are now making a pledge that as the AUM of Quantum Long Term Equity Fund hits certain future thresholds, we will lower our fees accordingly, as follows:

Level of Quantum Long Term Equity FundExpense Ratio (Net of Tax)
Up to 2,000 Crore1.09%
Next 2,000 Crore (upto 4,000 Cr.)1.00%
Next 2,000 Crore (upto 6,000 Cr.)0.95%
Next 2,000 Crore (upto 8,000 Cr.)0.90%
Nere (upto 10,000 Cr.)0.85%
On AUM Above 10,000 Crore0.75%

As it is a part of our DNA to do only what's best for our investors, we will similarly reduce the expense ratios of our funds, as per the table below. The expense ratio of the Quantum Tax Saving Fund will be the same as that of the Quantum Long Term Equity Fund, irrespective of AUM levels.

AUM Level
Expense Ratio (Net of Tax)
Quantum Liquid Fund 
Up to 500 Crore0.22%
Next 2,000 Crore (upto 2,500 Crore)0.13%
On AUM above 2,500 Crore0.09%
Quantum Dynamic Bond Fund 
Up to 250 Crore0.57%
Between 250 Crore to 1,000 Crore0.43%
On AUM above 1,000 Crore0.39%
Quantum Gold Fund  
Upto 250 Crore0.87%
On AUM above 250 Crore0.43%

We believe all Indian investors deserve sensible, low-cost opportunities to participate in the market. With Quantum, you will always have that opportunity. We look forward to sharing the fruits of our future growth with our investors. After all, we could not have made it this far without you!

With thanks,
Team Quantum

Product Labeling

Name of the SchemeThis product is suitable for investors who are seeking*Riskometer
Quantum Liquid Fund

(An Open- ended Liquid Scheme)
• Income over the short term

• Investments in debt / money market instruments

Investors understand that their principal will be at Low risk
Quantum Dynamic Bond Fund

(An Open-ended Debt Scheme with Defined Credit Exposure and Dynamic Maturity Profile)
• Regular income over short to medium term and capital appreciation

• Investment in Debt / Money Market Instruments / Government Securities

Investors understand that their principal will be at Moderate Risk
Quantum Tax Saving Fund 

(An Open-ended Equity Linked Savings Scheme)
•Long term capital appreciation

• Investments 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 a lock-in period of 3 years

Investors understand that their principal will be at Moderately High Risk
Quantum Long Term Equity Fund

(An open-ended equity scheme)
• Long term capital appreciation and current income

• Investments in equity and equity related securities of companies in S&P BSE 200 index
Quantum Gold Fund ETF

(An Open-ended Exchange Traded Fund- Gold)
• Long term returns

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

Mutual fund investments are subject to market risks read all scheme related documents carefully.

Please visit – www.QuantumMF.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.

Above article is authored by Quantum.

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