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Business News/ Mutual Funds / NFO Alert: Quantum Mutual Fund launches Quantum Multi Asset Allocation Fund; all you need to know
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NFO Alert: Quantum Mutual Fund launches Quantum Multi Asset Allocation Fund; all you need to know

Quantum Mutual Fund announced the launch of the Quantum Multi Asset Allocation Fund. The scheme opened for public subscription on February 19, 2024, and will close on March 01, 2024.

Quantum Mutual Fund launched the Quantum Multi Asset Allocation Fund as a part of its new fund offers.Premium
Quantum Mutual Fund launched the Quantum Multi Asset Allocation Fund as a part of its new fund offers.

Quantum Mutual Fund announced the launch of the Quantum Multi Asset Allocation Fund. The scheme opened for public subscription on February 19, 2024, and will close on March 01, 2024. Thescheme reopens for continuous sale and repurchase on March 13, 2024.

What kind of mutual fund scheme is this?

This is an open-ended scheme investing in equity & equity-related instruments, debt & money market instruments, and gold-related instruments. This product is suitable for investors seeking

  • Long-term capital appreciation and current income
  • Investment in a diversified portfolio of equity & equity-related instruments, debt & money market instruments, and gold-related instruments.

Pankaj Pathak, Sr. Fund Manager, Quantum AMC said, “The fund is launched to provide an option to fixed deposit by potentially providing better returns over the long run. The fund simplifies investment decisions with its one-stop diversified solution that invests across asset classes and enhances tax efficiency through indexation benefits. Investors in the 30% tax slab stand to benefit significantly compared to traditional fixed deposits."

What is the main objective of investing in this fund?

The scheme's investment objective is to seek to generate long-term capital appreciation by multi-asset classes including equity and equity-related securities, debt and money market instruments, commodity ETFs and exchange-traded commodity derivatives, and overseas securities. However, there is no assurance that the scheme's investment objective will be achieved.

Commenting on the fund launch, Chirag Mehta, Chief Investment Officer, Quantum AMC, said, “The number of investors in mutual funds is increasing rapidly and this fund provides these first-time investors to have a measured approach to equity markets along with diversification from gold and debt, thereby providing a rewarding and relatively smoother investment experience."

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of 500 per plan/option in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

InstrumentsIndicative allocations (% of total assets)Risk Profile

Minimum

Maximum

Equity & Equity Related Instruments

35

65

Very High

Debt & Money Market Instruments

25

55

Low to Moderately High

Gold related instruments 

10

20

Medium to High

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such multi-asset funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

Name of the fund

Five-year returns (in  per cent )

Quant Multi Asset Fund

21.65%

ICICI Prudential Multi-Asset Fund

15.40%

HDFC Multi-Asset Fund

11.92%

Axis Multi Asset Allocation Fund

11.42%

SBI Multi Asset Allocation Fund

10.67%

UTI Multi Asset Fund

8.80%

Source: AMFI (As of February 19, 2024)

How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked against NIFTY 50 TRI (40%), CRISIL Short Term Bond Fund AII Index (45%), and Domestic Price of Gold (15%). The benchmark will be representative of the fund’s asset allocation between equity, debt & gold securities and most suited for comparison for the performance of the scheme.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load", which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load" charged would be calculated as under:

  • 1.00% if redeemed or switch out on or before 90 days from the date of allotment of units.
  • NIL if redeemed or switch out after 90 days from the date of allotment of units.

Who will manage this scheme?

The fund will be co-managed by Chirag Mehta – Chief Investment Officer and Pankaj Pathak, Fund Manager -Fixed Income, Quantum AMC.  

Does the fund contain any inherent risk?

The scheme involves “Very High Risk" as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

 

 

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Published: 19 Feb 2024, 04:39 PM IST
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