Subbu's Solution

As an investor in Quantum Long Term Equity Fund, I am keen to know the outlook on this fund over next 3 years because in last one year it has not performed well because of holding cash position.

What makes you think the current investment strategy will give good returns over 3 years duration?

Tarun Bajaj
Dear Mr. Tarun, Quantum Long term Equity Fund follows a value investment style. We buy companies when they are available at a discount to their intrinsic value based on long term fundamentals, and sell companies when they trade at fair value or at a premium to what we believe is their fair value. It is a stock specific strategy and not linked to index levels. Over the last one year as company share prices have raised to levels we believed are not justified by fundamentals, we had to sell them from the portfolio, raising cash levels in the fund. A high cash level in a rising market has hurt near term performance. Despite the near term impact on performance, we believe over a longer cycle our strategy is in the best interest of the portfolio. QLTEF has followed this strategy over the last ten years, and you can see returns since its inception. Similar underperformance can be noticed during the year 2007, when again our cash levels had soared. This was only to help us deploy the cash in 2008 during the economic crisis, when stocks were available at attractive valuations
Performance Of QLTEF

Past Performance may or may not be sustained in the future.

Discrete 12Month Performance
Click here to view performance of other schemes managed by Mr. Atul Kumar
^Past performance may or may not be sustained in the future. Returns
greater than 1 year period are compounded annualized (CAGR). # S&P BSE 30 TRI ## S&P BSE Sensex @ shows the current value of ` 10,000/- invested at the beginning of a given period `
Load is not taken into consideration and Returns are for Growth Option. Returns up to 1 year period are Absolute Returns. ** Inception Date: Mar 13, 2006. Since inception returns are calculated on NAV of 10 invested at inception.

Product Label

Name of the SchemeThis 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
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.


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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