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Subbu's Solution

Which one of the investment style is good for better returns i.e., investing directly into a particular midcap stock or midcap fund?
Investing in one stock always is always riskier than investing in a bunch of stocks. We would never advise you to put all your eggs in a single basket, but diversify using Mutual Funds. Investing in a mutual fund will earn you the benefit of a fund manager's expert financial knowledge. A good fund manager is one who will invest in stocks after thorough research and at when stocks are at attractive valuations. You benefit by spreading risk across several stocks instead of investing directly in a single stock which may or may not give you the expected returns.
As an investor, you would need to devote time and energy to read and understand balance sheets of the company that you are investing in. The time and energy required is higher if you trying to build a portfolio of stocks instead of a single stock. Those investors who have the patience to understand the fundamentals of investing directly in stocks of a company may adopt this path. Else we recommend that every Indian saver should consider Mutual Funds as investment vehicles in which to invest their savings.

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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