Responsible investing is the need of the hour! Thursday, Jul 18, 2019
Water woes are worsening as we read about the ongoing Chennai water crisis. Recent news of Chennai doctors buying water for surgeries has shocked the entire nation. This is a wakeup call to each and every human being about the wrath of climate change. The expensive water bought by such hospitals has resulted in cost escalation, which is passed on to the patients, who will have to spend more.
Today, it is Chennai, tomorrow it can be Delhi, Mumbai, or all over India!
There are lot of environmental and social issues, which often take a backseat when decisions are taken by individuals, corporates and even governments. However, the impact of these issues can be long lasting and even irrevocable at times.
It is, therefore, no longer a choice but a need to make responsible choices now when there is still time.
One way of making a responsible choice and ensuring that your future needs are taken care of is by choosing sustainable investing. By investing in an equity mutual fund that focuses on Environmental, Social and Governance factors or an ESG equity fund, the investments will be in companies adhering to Environmental, Social and Governance norms. These funds ensures that investment flows into growth-oriented companies that adhere to non-financial factors like environmental friendly, employee friendly, stakeholder friendly and strong transparent governance practices.
An investor may think why to deviate from the strategy that focusses on financial factors or statements? Those strategies have performed well in the past?
Well, the simple answer to this is, it is difficult for a common investor to spot these non-financial risks in the financial statements. However, there have been cases in the past that these non-financial factors had a significant material impact on the firms’ valuation.
For instance, one of the top executives of a private bank was involved in financial irregularities and nepotism resulting into higher scrutiny by the regulators or a mining company that had to stop operations due to local protest over pollution concerns or a ban by USFA on a pharmaceutical plant or cases where the auditors have resigned because the company failed to provide significant information or cases of stock price manipulation, there are many such examples which rarely get surfaced in annual reports, quarterly results or any financial document. However, these incidents have a huge bearing on company’s bottom line and subsequently on the stock returns.
The investor can plant his investments into the ESG soil and his wealth tree will bear sustainable fruits with deeper roots and larger growth.
ESG Fund is a sustainable investment avenue to convert your savings into wealth.
Quantum India ESG Equity Fund is a well-diversified, open-ended equity fund investing in companies that are compliant on Quantum’s Environmental, Social and Governance (ESG) criteria. The fund will access companies based on Quantum ESG research framework based on company’s disclosures on ESG practices, assessing the quality of disclosures and management & stakeholder interactions. The fund will be growth oriented and actively managed.
It is time for us as investors to generate long-term wealth by also making responsible investment choices to shape and transform the world for a better tomorrow.
|Name of the Scheme||This product is suitable for investors who are seeking*||Riskometer|
|Quantum India ESG Equity Fund|
(An Open ended equity scheme investing in companies following Environment, Social and Governance (ESG) theme)
|• Long term capital appreciation |
• Invests in shares of companies that meet Quantum’s Environment, Social andGovernance (ESG) Criteria
Investors understand that their principal will be at High Risk
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.
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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.