Offer for Units of Rs. 10/- per unit for cash during the New Fund Offer Period and at NAV based prices upon re-opening

Fixed Deposits: A Losing Proposition

A key question you should ask yourself – Is your investment beating inflation? Your money is worth less today than it was a few years ago, thanks to inflation. The Rs. 500 note in your pocket will be worth only Rs 150, in 20 years at about 6% inflation each year. Inflation reduces the purchasing power of your hard-earned money and portfolio. Despite elevated interest rates, traditional modes of investment such as Bank FDs are not able to keep up with inflation. It is therefore important to invest in avenues that have the potential to beat inflation.


Past performance may or may not sustained in future. Quarterly compounding and Tax rate on Fixed Deposit assumed to be 30%. The consumption basket data is derived from Private Final Consumption.
Expenditure data from CMIE using the components that make a typical consumption basket and how average spending on such consumption basket has increased over time.

Markets are Cyclical & there is no Consistent Winning Asset Class

Having emphasised on the need for investing into market instruments, it is observed that not all assets move in the same direction always. There have been years when equities have rewarded investors with stellar returns and at times disappointed them (like in the years 2011, 2015 and 2018). During periods where equities have generated negative or lacklustre returns, it is usually debt and gold that have done well and added stability to the portfolio. Hence, it makes more sense to follow a multi-asset approach.


The chart ranks the best to worst performing indexes per calendar year from top to bottom. Past performance may or may not be sustained in future.
Indices Used: S&P BSE Sensex Total Return Index; MCX Gold Commodity Index and CRISIL Composite Bond Fund Index. Source: Bloomberg

3 Asset Classes, 1 Fund – A Ready Made Solution

While an equity investment is indispensable to build wealth over the long term and with potential to cope with inflation, it is also subject to drawdowns. Asset Allocation across asset classes – Equity, Debt & Gold helps to achieve good risk-adjusted returns by mitigating portfolio volatility, making it an ideal investment choice over a medium to long-term investment horizon. A Multi Asset strategy helps lower volatility than pure equity investments without compromising on the growth potential.


Time frame is December 2004 to December 2023. The period is taken from 2004 since the asset allocation weights are calculated based on normalizing the historical monthly equity and debt indicators. Given the normalization time frame used in the strategy, data availability for certain parameters beyond the time frame analyzed was a constraint. Compiled by Quantum AMC *Equity-Debt-Gold in ratio of 40-40-20. **Equity-Debt allocated in 60-40 range. Based on Sensex Index, Crisil Composite Bond Fund Index, and Domestic Gold Prices. Note: Past performance may or may not be sustained in the future

About The Fund

With efficient asset allocation, the Quantum Multi Asset Allocation Fund aims to spread risk across three major asset classes i.e. Equity, Debt and Gold to deliver better risk-adjusted growth in the long run. Equity endeavours to deliver capital appreciation, Debt aims to stabilize the portfolio while Gold offers long-term store of value and potential diversification against inflation & currency depreciation. The fund serves as a comprehensive solution for diversification across asset classes encompassing Equity, Debt, and Gold each with varying return and risk profiles.


Investors can rely on the Fund Manager who employs strategic portfolio positioning to optimize returns, adjusting exposure to equities based on market valuations. Investors who do not have the time or the expertise to manage a diversified portfolio on their own & want to simplify the investment process can take advantage of this fund.



5 Reasons to invest in the Quantum Multi Asset Allocation Fund
  • Dynamic research backed asset allocation to mitigate risks

  • Smarter option to Bank Fixed Deposits

  • Periodic rebalancing to buy low & sell high

  • Tax efficient re-balancing & indexation benefits

  • Potential for good risk adjusted returns

Indexation Benefit

As you may be aware that debt funds and certain other funds, do not qualify for indexation benefit as per the new tax law effective from April 01, 2023. Indexation means recalculating the purchase price of an asset, to prevent capital gain tax. It adjusts the impact of inflation in capital gains using CII (Consumer Inflation Index) and brings down effective taxation.


The existing Quantum Multi Asset Fund falls under debt fund taxation category; hence the indexation benefit is no longer applicable for purchase after April 01, 2023. However, investors who have invested in QMAFOF, before 31st March. have been grandfathered into the previous taxation policy and will continue to benefit from indexation.

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Investors looking to take advantage of this indexation benefit can opt for the Quantum Multi Asset Allocation Fund.

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Fund Features


  • Investment Objective

    The investment objective of the Scheme is to generate long term capital appreciation/income by investing in Diversified portfolio of Equity & Equity Related Instruments, Debt & Money Market Instruments and Gold Related Instruments.

  • Benchmark

    Tier I: NIFTY 50 TRI (40%) + CRISIL Short Term Bond Fund AII Index (45%) + Domestic Price of Gold (15%)

  • Type of Scheme

    An Open-Ended Scheme Investing in Equity & Equity Related Instruments, Debt & Money Market Instruments and Gold Related Instruments

  • Plans Available

    The Scheme offers two Plans - Direct Plan & Regular Plan – Investment Through Distributor. Each plan offers – Growth Option

  • Minimum Application Amount

    500 / SIP - 100 (Daily) & 500 (Weekly, Fortnightly, Monthly & Quarterly)

Fund Managed By

  • Chirag Mehta
    CIO & Fund Manager
    Funds Managed:
    • Quantum Equity Fund of Funds
    • Quantum Multi Asset Fund of Funds
    • Quantum India ESG Equity Fund
    • Quantum Gold Savings Fund
    • Quantum Small Cap Fund
    Qualification:
    • CAIA (Chartered Alternative Investment Analyst), and Masters in Management Studies in Finance
  • Pankaj Pathak
    Fund Manager
    Funds Managed:
    • Quantum Dynamic Bond Fund
    • Quantum Liquid Fund
    Qualification:
    • Post Graduate Diploma in Banking & Finance from National Institute of Bank Management, Pune and is qualified CFA (Chartered Financial Analyst).

Product Label

  • Name of the Scheme & Tier I Benchmark

    Quantum Multi Asset Allocation Fund


    (An Open-Ended Scheme Investing in Equity & Equity Related Instruments, Debt & Money Market Instruments and Gold Related Instruments)


    Tier I Benchmark: NIFTY 50 TRI (40%) + CRISIL Short Term Bond Fund All Index (45%) + Domestic Price of Gold (15%)

  • This product is suitable for investors who are seeking*

    • Long term capital appreciation and current income

    • Investment in a Diversified Portfolio of Equity & Equity Related Instruments, Debt & Money Market Instruments and Gold Related Instruments
    • Risk-o-meter of Scheme#

      Investors understand that their principal will be at Very High Risk

    • Risk-o-meter of Tier-1 Benchmark

*Investors should consult their financial advisors 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

Frequently Asked Questions

A Multi-Asset Allocation fund is a type of mutual fund that invests in a variety of asset classes, such as equities, fixed income and gold. Equities offer potentially high returns but with higher volatility. Fixed income provides steadier income and lower volatility.
Gold can offer diversification and safeguard against certain market conditions.
The goal of these funds is to provide investors with a diversified portfolio that can help to reduce risk, generate good risk adjusted returns and achieve long-term investment goals.

Multi-Asset Allocation fund can be suitable for a wide range of investors, including:

  1. Balance risk & reward: Those seeking downside protection and a balanced approach with lower volatility than pure equity investments without compromising on the growth potential may benefit from this fund.
  2. Retirement Savers: Individuals saving for retirement may appreciate the risk management and inflation-beating features of Multi-Asset Allocation fund, especially as they approach retirement age and seek to preserve capital.
  3. Novice Investors: Those who are new to investing may find this fund attractive due to the professional management and measured exposure to equities that they offer.
  4. Investors Seeking Diversification: Investors looking to diversify their portfolios beyond traditional equity and fixed-income investments can benefit from the dynamic Asset Allocation diversification provided by Multi-Asset Allocation fund.
  5. Individuals with Limited Time or Expertise: Investors who lack the time, knowledge, or expertise to construct and manage a diversified investment portfolio on their own may find this fund convenient and effective.
  6. Option to an FD: Investors looking to cope with inflation better than traditional Bank Fixed Deposits along with indexation benefits at time of taxation may find Multi-Asset Allocation funds suitable for achieving these objectives.

Multi-Asset Allocation fund offer several advantages for investors:


Diversification

Diversification: One of the primary benefits of Multi-Asset Allocation fund is diversification. By investing across multiple asset classes such as stocks, bonds, and gold, the fund spread risks and reduces exposure to any single asset class. This diversification can help mitigate the impact of market volatility and potentially enhance risk-adjusted returns.


Risk Management:

Multi-Asset Allocation fund is designed to manage risk effectively. By investing in a mix of assets with different risk profiles, fund managers aim to create portfolios that balance risk and return. Additionally, this fund may employ risk management techniques to safeguard investors during market downturns.


Asset Allocation Expertise:

Fund managers of Multi-Asset Allocation fund have expertise in strategic Asset Allocation. They continuously monitor market conditions, economic trends, and other factors to adjust the fund's Asset Allocation strategy accordingly. This active management approach allows investors to benefit from dynamic Asset Allocation decisions aimed at optimizing risk-adjusted returns over time.


Simplicity and convenience:

Multi-Asset Allocation fund simplify the investment process for investors by offering a single investment vehicle that provides exposure to Multiple asset classes instead of them having to select and manage individual investments across various asset classes. This convenience can be particularly appealing for investors who prefer a hands-off approach to managing their portfolios or those who do not have the time or expertise to build and maintain diversified portfolios on their own.


Tax efficiency

Since rebalancing is a major part of an Asset Allocation strategy, an individual ends up paying taxes every time they rebalance. Multi-Asset Allocation fund on the other hand does not pay any tax when it switches between asset classes. This keeps the gains invested and better compounds the gains which are eventually passed on to the investor.


Overall, Multi-Asset Allocation fund can be an attractive option for investors seeking diversification, convenience, and the potential for more stable returns in their investment portfolios. However, it's essential for investors to carefully consider their investment objectives, risk tolerance, and investment time horizon before investing in this fund.

This fund is generally suitable for over 3 years to benefit from indexation benefit along with the potential for good returns over the long run.

The returns from Multi-Asset Allocation fund can vary depending on factors such as the fund's investment strategy, market conditions, Asset Allocation. Generally, this fund aims to provide a balance between risk and return, seeking to deliver competitive returns over the long term while managing volatility.


Historically, Multi-Asset Allocation have offered returns that are typically higher than those of conservative investments like fixed deposit but lower than those of pure equity allocation. The actual returns can vary widely, ranging from moderate to potentially significant, depending on the fund's investment approach and the performance of the underlying assets.

Quantum Multi Asset Allocation Fund invests in a diversified portfolio of Equity & Equity Related Instruments, Debt & Money Market Instruments and Gold Related Instruments


The fund's Asset Allocation strategy includes deploying 35-65% corpus in equity and equity-related securities, 25-55 % towards debt and money market instruments, 10-20% in gold ETF The Fund will predominantly invest in securities of Nifty 50 index and other large cap stocks for its equity component, sovereign and PSU debt securities across durations for its fixed income allocation and Quantum Gold ETF for its Gold component.

The investment objective of the Quantum Multi-Asset Allocation Fund is to generate modest capital appreciation while trying to reduce risk (by diversifying risks across asset classes) from a combined portfolio of equity, debt/money markets and gold investments.


Portfolio allocation between the units of equity, debt/ money markets and gold broadly depends on the relative valuations between the asset classes. Relative valuations are determined by evaluation of various influencing factors. Some of the factors include:


• Price/Earnings Ratio relative to historical averages;
• The relationship between Earnings Yield to Bond Yield relative to historical averages;
• Macroeconomic factors prevailing globally, and within India.


After determining the optimal Asset Allocation, the Portfolio/ Investment Team determines the allocation to specific equity, debt / money markets and gold instruments within the Asset Allocation. The allocations would be regularly reviewed and necessary portfolio changes would be carried out based on the analysis suggested by various influencing factors

Depending on the holding period and your tax bracket, capital gains are subject to taxation.


Short term capital gains for a duration less than 3 years is subject to taxation as per marginal tax rates.


While long term capital gains for a duration greater than 3 years are eligible for taxation at 20% with indexation benefit. You thus get the potential to save more tax than conventional investments such as bank fixed deposits where returns are taxed as per your income tax slab. This translates to a better return on investment, especially for investors in the highest income tax bracket.

While both funds aim to generate modest capital appreciation while trying to reduce risk by diversifying across asset classes, the Quantum Multi Asset Allocation Fund invests directly in stocks, bonds and Gold ETF and the Quantum Multi Asset Fund of Funds invests in schemes of Quantum Mutual Fund which invests in Stocks, Bonds and Gold.


Minimum allocation to equities in Quantum Multi Asset Allocation Fund will be 35%. Minimum allocation to equities in Quantum Multi Asset Fund of Funds will be 25%.


For a holding period of 3 years or more, gains from the Quantum Multi Asset Allocation Fund will be subject to 20% tax with indexation benefits compared to marginal tax rate for Quantum Multi Asset Fund of Funds (which is classified as Debt fund for taxation purpose).

Quantum Multi Asset Allocation Fund Video

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