How We Invest? “No Shooting From The Hip”

Investment Philosophy

The Quantum vision is To stay focused on the needs of our investors and be India’s most respected mutual fund house by adhering to traditional values of simplicity, transparency and integrity while continuing to deliver steady performance over the long term... the keyword to takeaway from this statement is the word respected. Not the largest in terms of AuM but the most respected, by doing what's right for the investor and not deviating from our core investment philosophy.

Quantum Mutual Fund has always firmly adhered to its values and will continue to stay true to our philosophy on equity investments. The key word here though is Value. Value not only in terms of the softer aspects of the organization but also in terms of how we invest. That is by following the tenets of Value Investing as a concept for the Quantum Long Term Equity Value Fund since its inception in 2006. Value Investing is defined as “An investment strategy where stocks are selected that trade for less than their intrinsic values. Value investors actively seek stocks they believe the market has undervalued. Investors who use this strategy believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond with a company's long-term fundamentals, giving an opportunity to profit when the price is deflated.”

The Quantum Long Term Equity Value Fund has crystallized the above definition into a working process, honed over decades of experience, into a simple flow chart that is given below:

“No Shooting From The Hip”

Our tried and tested Research and Investment process gives clients with a long-term investment philosophy a channel that outperforms on the Upside and limits the Downside

Investment Process

  • 1.

    Our Investment Criteria - Value

    We first understand the business of the company and the environment in which it operates. We then evaluate the management of the company and their long-term goals.

  • 3.

    Buying Criteria

    For a company’s stock entering the portfolio for the first time, the current price should be 40% or less than our estimate of long-term value

  • 2.

    Analyze

    The stock price of the company based on fundamentals relative to its sector, its historical performance, and overall market trends.

  • 4.

    Selling Criteria

    The company’s stock exits the portfolio (completely or partially) if the current market price is greater than our estimate of long-term value. We could also reduce exposure to a stock in case there is a change in the view of management or the business.

Portfolio Construction