Quantum MF files for overseas fund of funds

  • The fund will invest at least 10% of the portfolio in S&P 500, emerging markets and developed markets ETFs. It will also invest a minimum of 5% in gold-based funds

Livemint
Updated9 Feb 2022
Quantum Global Fund of Funds is an open-ended scheme which will invest primarily in shares and units of Vanguard Funds. (Photo: iStock)
Quantum Global Fund of Funds is an open-ended scheme which will invest primarily in shares and units of Vanguard Funds. (Photo: iStock)

NEW DELHI: Quantum Mutual Fund has filed a scheme information document (SID) with the Securities and Exchange Board of India (Sebi) for an overseas Fund of Fund (FoF) - Quantum Global Fund of Funds. The open-ended scheme will primarily invest in shares and units of Vanguard Funds.

The scheme will invest across different asset classes, with the equity allocation diversified across different geographies.

The list of funds that the scheme will invest in includes Vanguard S&P 500 ETF, Vanguard FTSE Emerging Markets ETF, Vanguard FTSE Developed Markets ETF, Vanguard Growth ETF, Vanguard Long / Extended Duration Treasury ETF, Vanguard Intermediate Term Treasury ETF and SPDR Gold Shares / iShares Gold Trust / Other Overseas GOLD ETF.

The fund will invest at least 10% of the portfolio in S&P 500, emerging markets and developed markets ETFs. It will also invest a minimum of 5% in gold-based funds.

The returns and risk of the scheme will depend on the mix of allocation of funds across geographies and assets. As per the document, the scheme will strategise its allocation based on relative performances of each asset class/market, which in turn will be based on relative valuations and other macro-economic factors influencing each geography and asset class. The allocations will be regularly reviewed, and necessary portfolio changes will be carried out by the fund manager based on the analysis of various influencing factors.

The fund will be managed by Chirag Mehta.

Note that underlying ETFs and or index funds are not actively managed.

The scheme will be benchmarked to S&P BSE Sensex Index 60% + Crisil Composite Bond Fund Index 30% + Gold Prices 10%. The document said that the benchmark was more representative of the funds intended for long-term average asset allocation strategy.

The FoF may invest a maximum of $60 million in overseas securities and $200 million in overseas ETFs within six months from the close of the new fund offer.

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