"Is your MF underperforming the market?" "Is your mutual fund scheme underperforming the market?" - asked a leading financial daily in its Personal Finance section earlier this week. What should you do with fund laggards? The article advises:
We say - Why invest in a laggard to begin with? Never invest in a New Fund Offer - Of course all funds are new at some point in time, and need encouragement in their earlier stages. But a fund house which follows the New Fund frenzy is incomprehensible! Quantum Mutual Fund has launched just 6 basic funds - sufficient to help diversify your investments across Equity, Debt and Gold. Never chase the best performing fund - Performance! Returns! Numbers! - Do you ever bother about the risk involved in investing? Risk Return analysis is an important aspect of mutual fund investing-how far the returns of a fund justify the risk it involves. At Quantum, we don�t claim to be the best performing fund - Yes, the Quantum Long Term Equity Fund is *5 star rated by Value Research - but along with a good track record we focus on keeping the risk low. Never place blind bets on themes - Sectoral Funds, Thematic Funds - Do they really make sense to you? To us, they don�t. We don�t invest in specific opportunistic sectors, we rather invest in opportunities across sectors. If you think with reservations such as these, we might be compromising on our fund performance, take a look at the snapshot of the performance of our Quantum Long Term Equity Fund vis-�-vis its benchmark.
These are just our views, let us know what you think.
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Disclaimer :
The views expressed in this artilcle are strictly for information and explanation purpose only. The article is meant for general reading purpose and not to be considered as an investment advice / recommendation. This information is not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments. The Sponsor, The Investment Manager, The Trustee, their respective directors, employees, affiliates or representatives shall not be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in the responses.
*Source for 5-Star rating: Value Research Fund Ratings are a composite measure of historical risk-adjusted returns. In the case of equity funds,this rating is based on the average monthly returns for the last 3-year and 5-year periods. These ratings do not take into account any entry or exit load. Five-stars indicate that a fund is in the top 10 per cent of its category in terms of historical risk adjusted returns. 182 open-ended Equity: Diversified Funds were rated as on July 31, 2010. Value Research Fund Ratings are subject to change every month. The rating is based on primary data provided by respective funds; Value Research does not guarantee the accuracy.
Investment Objective: Quantum Long - Term Equity Fund�s (QLTEF) investment objective is to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the BSE 200 index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets.Asset Allocation: QLTEF will primarily invest in Equity and Equity related securities, but may invest in money market instruments and liquid schemes of mutual funds to meet liquidity needs.Terms of Issue: QLTEF is an open-ended Equity Scheme offering Growth and Dividend Options. The units can be subscribed/redeemed at the applicable NAV, subject to applicable load on all business days.Entry Load: Nil. Exit Load: On repurchase/redemption/switchout within 6 months of allotment- 4%, after 6 months but within 12 months of allotment- 3%, after 12 months but within 18 months of allotment-2%, after 18 months but within 24 months of allotment-1%, after 24 months of allotment-Nil.Risk Factors: All Mutual Funds and securities investments are subject to market risks including uncertainty of dividend distributions and the NAV of the schemes may go up or down depending upon the factors and forces affecting securities markets and there is no assurance or guarantee that the objectives of the scheme will be achieved. Quantum Long - Term Equity Fund, is the name of the scheme and does not in any manner indicate either the quality of the Scheme, its future prospects or returns.Scheme specific risk: Equity and Equity related instruments are by nature volatile and prone to price fluctuations due to both macro and micro factors. The Investor may lose money over short or long period due to fluctuation in Scheme�s NAV in response to factors such as economic and political developments, changes in interest rates and market movement and over longer periods during market downturns. Trading volumes, settlement periods and transfer procedures may restrict the liquidity of these investments of the QLTEF.Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882.Sponsors: 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 (AMC). The Sponsor, Trustee and the Investment Manager are incorporated under the Companies Act, 1956. The past performance of the Sponsor / AMC/ Fund has no bearing on the expected performance of the scheme. Mutual Funds investments are subject to market risks. Please read the Scheme Information Document(s) / Key Information Memorandum(s) / Statement of Additional Information / Addendas carefully before investing. Scheme Information Document(s) /Key Information Memorandum(s)/ Statement of Additional Information can be obtained at any of our Investor Service Centers or at the office of the AMC 505, Regent Chambers, 5th Floor, Nariman Point, Mumbai - 400 021 or on AMC website www.QuantumMF.com / www.QuantumAMC.Com
Click here to read Statutory Information and Detailed Risk Factors