Posted on Tuesday, Jan 14, 2020
Mr. I.V. Subramaniam (Subbu), Director, Quantum Asset Management Co. Pvt. Ltd. is pleased to answer investment related queries. Once again, read on to know his views on some interesting queries posted recently...
The name of Quantum Multi Asset Fund was recently changed to Quantum Multi Asset Fund of Funds (QMAFOF) since it invests in other schemes of Quantum.
While QMAFOF can help investors generate wealth over long term, what sets it apart from other long term funds (diversified equity funds) is that QMAFOF's main objective is to generate modest capital appreciation while trying to reduce risk by diversifying risks across asset classes. The portfolio of the fund divided into three asset classes of equity, debt and gold will help to reduce volatility while aiming to generate risk adjusted returns. QMAFOF gives the fund manager the liberty to balance its allocation to each of the three asset classes as per the market conditions. With indicative equity & debt allocation ranging from 25% - 65% and gold from 10% - 20%.
Therefore if you are looking for a fund that helps you build your retirement corpus while also trying to mitigate risk QMAFOF could be a prudent choice. For that matter, QMAFOF could also be considered as a fund that holds your post-retirement corpus. With a right balance of equity – debt and gold QMAFOF aims to give your money the liberty to not be afraid of inflation, changing interest rates by giving just the right exposure to equities.
Also you could check out our Retirement Calculator to see exactly how you can built your corpus over the long term. Click here.
I am 27 years old working individual. I can save up to Rs 15,000 a month. With considerably low responsibilities I think I should be able to take some risk of investing in equities. How should I invest this sum?
It's great that you want to start investing at this stage. Given your age and risk appetite you should by all means look at investing in equity mutual funds. Equity has potential to earn high returns over the long period of time. However compared to other asset classes equities are more risky and the year on year returns are volatile. Also remember, with relatively less responsibilities this is an ideal time for you to start investing for your retirement. Moreover to make this easier you can simply split your investment in two funds - Quantum Equity Fund of Funds & Quantum Long Term Equity Value Fund. While QEFOF is a fund that has a portfolio of around 6-7 well researched diversified equity schemes, only 20% of your portfolio could be invested in QLTEVF - our flagship diversified equity fund that follows a value style of investing that aims to generate wealth for long term while also mitigating the risk factor. Click here to know more.
With Australia's wildfire now and recent Amazon fire and other geographical worries I am driven towards ESG investing. Could you share some insights on this?
The ideal time to investing in sustainable businesses with ESG oriented equity funds was like - yesterday. Yes, I understand your concerns on things that have been happening to our planet globally. That is why we had launched Quantum India ESG Equity Fund in June 2019 last year. Its time businesses look at sustainability as a core to their processes to survive in the long run.
As per the World Economic Forum Global Risks Perception Survey 2018–2019, business leaders are acknowledging the risks that climate change is expected to bring.
However for an investor it might not be possible to identify all the challenges businesses risk to face. Therefore an investment in Quantum India ESG Equity Fund will help you as an investor to build wealth over long term by investing in growth-oriented companies who aim to deliver sustainable returns.
|Name of the Scheme||This product is suitable for investors who are seeking*||Riskometer|
|Quantum Long Term Equity Value Fund|
(An Open Ended Equity Scheme following a Value Investment Strategy)
|• Long term capital appreciation |
• Invests primarily in equity and equity related securities of companies in S&P BSE 200 index
Investors understand that their principal will be at Moderately High Risk
|Quantum Equity Fund of Funds|
(An Open Ended Fund of Funds scheme Investing in Open Ended Diversified Equity Schemes of Mutual Funds)
|• Long term capital appreciation |
• Investments in portfolio of open-ended diversified equity schemes of mutual funds registered with SEBI whose underlying investments are in equity and equity related securities of diversified companies
|Quantum Multi Asset Fund of Funds|
An Open Ended Fund of Funds Scheme Investing in schemes of Quantum Mutual
|•Long term capital appreciation and current income |
• Investments in portfolio of schemes of Quantum Mutual Fund whose underlying investments are in equity , debt / money market instruments and gold
|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, Governance (ESG) criteria.
Investors understand that their principal will be at High Risk
Subbu's Solution is authored by I. V. Subramaniam. I. V. Subramaniam is a director of Quantum Asset Management Company Private Limited. The responses expressed here are strictly for information and explanation purpose only. The responses are meant for general reading purpose and not to be considered as an investment advice / recommendation. The responses are not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or units of the Mutual Fund. 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.Risk Factors: 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 scheme's objective will be achieved and the NAV of the scheme(s) may go up or down depending upon the factors and forces affecting securities markets. Investment in mutual fund units involves investment risks 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 (AMC). The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.
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