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Subbu's Solution

Hi Subbu is it good time to buy equity funds like QLEF now for the long term given the fall in sensex or is it better to wait for longer ? Thanks - SHANKAR
Hello Mr. Shankar, investing in equity for long term is always good. Trying to time the market by deciding to wait rather than invest, is a tough call as it may work sometimes and not work sometimes. I always believe one should begin investing now, rather than waiting for later. Ideally, time can be better spent analyzing funds to see their style and if that style suits you. The selected fund should take care of deciding to invest in the market or to hold cash. What is important is that you realize the importance of investing in equities, and stay invested for the long term, which is good.

You should consult with your financial advisor to find out if you are underweight in equities, then you can increase your investments in equities by adopting a Systematic Investment Plan (SIP) method to invest rather than beginning with a large investment.

SIP allows you to average out market volatility. Through SIP you invest a small amount on a regular basis, so when the market goes up you buy less units of the mutual fund and when the market goes down you buy more units of the mutual fund.

Would like to conclude by reminding of the old investment adage – ‘higher the risk, higher the gain’ which holds true for equities since equities are best suited for investors who are willing to take high risk. Here risk is largely defined as volatility of returns than permanent loss of capital. Mr. Shankar, you could also consult your financial advisor for any asset allocation related queries.

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.

Disclaimer:

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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