Incorporated amid the Global Financial Crisis, Quant Mutual Fund has been in existence for approximately two decades now.
The AMC offers a variety of mutual fund schemes, including equity funds, debt funds, and hybrid funds. Quantum Mutual Fund is known for its focus on active management and commitment to providing investors with high-quality investment products.
Quantum Tax Saving Fund
Investment Objective
The primary investment objective of the scheme is to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the S&P BSE 200 Index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets.
Investment Strategy
- The fund follows the bottom-up approach while selecting stocks for investment with an objective to minimize the risk.
- The fund holds cash when it does not find any opportunity to invest and does not enter into derivatives.
Portfolio Composition
The portfolio is biased towards large-cap stocks, with 87.04% of the funds allocated to large-cap stocks and the remaining 12.96% to mid-cap stocks.
Source: quantumamc.com & Value Research
Top 5 Holdings for Quantum Tax Saving Fund
| Name | Weightage % |
| HDFC Bank Limited | 9.14 |
| ICICI Bank Limited | 6.59 |
| Infosys Limited | 5.12 |
| Eicher Motors Limited | 4.37 |
| State Bank of India Limited | 4.31 |
Source: quantumamc.com
Performance for Quantum Tax Saving Fund
Your investment of ₹10,000 in this would have performed as below table with respect to benchmarks.
| Period | Scheme (₹) | Tier 1 Benchmark | Tier 2 Benchmark | Additional Benchmark |
| Since Inception | 16.17% | 16.26% | 16.09% | 15.37% |
| 10 years | 14.70% | 16.42% | 16.06% | 14.75% |
| 5 years | 10.28% | 12.55% | 12.28% | 12.25% |
| 3 years | 22.70% | 23.31% | 22.23% | 20.30% |
| 1 year | 13.86% | 11.31% | 11.25% | 11.74% |
Source: quantumamc.com
Fund Manager
The scheme is co-managed by Mr George Thomas & Mr Christy Mathai.
- Mr. George Thomas has more than six years of experience and has been managing this fund since 1st April 2022.
- Mr Christy Mathai has approximately seven years of experience and has been managing this fund effective from November 2022.
Who should invest in Quantum Tax Saving Fund?
The fund is suitable for investors who are seeking.
- Long-term capital appreciation.
- Invests primarily in equity and equity-related securities of companies in the S&P BSE 200 index and to save tax u/s 80 C of the Income Tax Act.
Why invest in this Fund?
- Optimize tax saving under section 80C.
- Uses a bottoms-up stock selection process to minimize risk.
- It has a low portfolio turnover.
- It holds cash when stocks are overvalued – no derivatives and no hedging.
- It follows a disciplined research and investment process.
- It has one of the lowest expense ratios in its category.
Time Horizon
- Investments in this product are subject to a lock-in period of 3 years.
Conclusion
The Quantum Tax Saving Fund is an open-ended equity-linked saving with a statutory lock-in of 3 years and tax benefits on investments up to ₹1.5 lakh in a financial year.
Although the fund has underperformed in the long run, it has shown outperformance in the last year. Investors who wish to take the benefit of Sec 80C of the Income Tax Act can claim a deduction of up to ₹. 1.5 Lakhs can be considered this fund with an understanding of high risk for a long-term time horizon.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
