Quantum Direct Investor Information Initiative

No Change in Our Philosophy Wednesday, Mar 08, 2017

Quantum Mutual Fund was established in 2006 as India's first direct-to-investor mutual fund house. The path that we have chosen to walk is quite unique in its own way, as our driving focus has always been on doing what's right for the investor while keeping costs low.

From day one, Quantum has maintained transparency in our approach by adopting a team-driven, well-defined research and investment process that generated positive results for our investors over the long term. During Quantum's lifespan, we have avoided the foggy distribution system that developed at the expense of investors who were kept in the dark, at least as far as the commission they paid was concerned. Hence we firmly stood our ground that till transparency on distributor commissions came into the system, we would pay Rs. ZERO.

There are a large set of distributors who want to work for the benefit of their clients. More than 300 of such distributors are happily working with us at zero fees, reiterating what we have said since inception: we have no issues whatsoever working with distributors who are as passionate about transparency and increasing their investors' wealth as we are.

In October 2016, things changed. SEBI's new rule necessitates all mutual fund houses to disclose the exact commission paid to distributors in the half-yearly Consolidated Account Statement (CAS) that is sent to investors. Though our aim was that distributors should disclose commissions directly to investors, it is a start towards giving information that is rightly due investors. And so with SEBI's relieving news, Quantum is pleased to introduce Quantum Regular Plans for investors, effective April 1, 2017.

Investors need to know that Quantum's core remains untouched. There will be no change to our operating philosophy, our structure and our fund management style. We want to stress that investors can continue investing with us in our Direct Plans at the existing expense ratio.

Also remaining unchanged is our focus on low costs, as is evidenced by our commission structure, shown in the table below:

ExpensesUpfront CommissionTrail Commission
Year 1 Year 2 Year 3 Year 4 onwards
Total Commission Paid00.15%0.20%0.25%0.15%
Borne by      
 - Regular Plan Investors00.15%0.15%0.15%0.15%
 - Quantum AMC00.00%0.05%0.10%0.00%

Commissions stated are excluding service tax and any other statutory levies, which will be borne by investors of the Regular Plan and Quantum AMC as per the table above
For Regular Plan investors, any payouts above 0.15% will be borne by Quantum AMC.

The fees we charge are among the lowest in the industry. Even if we consider the expense ratio for, let's say, the Quantum Long Term Equity Fund's regular plan, it will be around 1.43%, much lower than some fund houses with 10 times more AuM than us.

Our sole aim remains that distributors are adequately reimbursed for the valuable advice that they impart to investors. We encourage long-term investing; on the same note, distributors who retain investor money with Quantum will receive a higher commission after their clients' investments with us complete 24 months. Thus the culture of low cost, value-based, long-term investing remains intact for all our investors.

To conclude, both investment options remain available for Quantum investors, a regular plan and a direct plan. After careful consideration of industry practice, we have decided to keep fund management fees low (also one of the lowest in the industry as evidenced by the Fee table).

In short, it is an opportunity to serve you in a much more comprehensive manner, and we look forward to opening our doors further.

With Regards

Team Quantum

Product Labeling
Name of the SchemeThis product is suitable for investors who are seeking*Riskometer
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.

Moderately High – Investors understand that their principal will be at Moderately High Risk

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

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article 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.

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.

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