Subbu's Solution

Why Quantum is not offering dividend payout mode only growth mode?

This is question investors have been asking us often & we like that, as it gives us an opportunity to share our philosophy with you! Firstly, by definition, dividends declared by the fund are transfers of a portion of profit earned by the fund to its shareholders/investors.
Declaring a dividend not only involves a cost, but also creates a situation where some investors are ok to receive a dividend while others are not.
At Quantum, we want our investors to declare their own dividends!
By this we mean that we don’t want to give you money when you don’t need it or you need more of it or you need less of it. A mutual fund gives one dividend to all its investors, it cannot give you a tailor-made payout for exactly the amount of money you need. So, giving a dividend may not solve your problem.
Instead, we leave that decision up to you.
Another fact is that, for regular dividends to be paid out, a certain number of holdings must be sold off in order to raise the money. Now this sell off might not be at the most appropriate valuations – thus losing out on higher returns.
But that does not stop you from paying a dividend to yourself for any amount that you wish, whenever you wish. You have a family occasion coming up and need money. You don’t have to depend on your mutual fund to pay out your dividend. Instead, you can redeem as many units as would provide you the required amount and effectively pay yourself a handsome “dividend”.


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 - 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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