Incorporated in the midst of 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 its commitment to providing investors with high-quality investment products.
Quantum Liquid Fund
Investment Objective:
The primary investment objective of the Quantum Liquid Fund is to provide optimal returns with low to moderate levels of risk and high liquidity through judicious investments in the money market and debt instruments.
The primary objective of the Liquid Fund is to ensure that your investments are made prudently in safe and liquid instruments to earn slightly higher returns than interest on a bank savings account.
Investment Process:
· The fund prioritizes Safety and Liquidity over Returns and invests predominantly in Government Securities, Treasury Bills, and Money Market instruments issued by Public Sector Undertakings.
· The scheme primarily focuses on safety, liquidity, and returns while considering investment options.
· The scheme tries to minimize the credit risk by investing primarily in Government securities or PSUs, rated as AAA/A1+.
Portfolio Composition:
The fund holds its assets mostly in debt instruments to achieve its investment objective. The portfolio comprises 99.32% of allocation to debt securities, and the remaining is held in cash and cash equivalents.
Source: quantumamc.com
Top 5 Holdings for Quantum Liquid Fund
| Name | Weightage % |
| Reserve Bank of India T-Bills 182-D 07/12/2023 | 16.85 |
| Bank Of Baroda CD 15/11/2023 | 8.46 |
| Small Industries Devp. Bank of India Ltd CP 91-D 22/11/2023 | 8.45 |
| Export-Import Bank Of India Money Mkt 91-D 07/12/2023 | 8.42 |
| National Bank For Agriculture & Rural Development Money Mkt 90-D 13/12/2023 | 8.41 |
Source: quantumamc.com
Performance for Quantum Liquid Fund
| CRISIL Liquid Fund AI Index | CRISIL 1 year T-bill Index | ||
| Period | Scheme | Benchmark | Additional Benchmark |
| Since Inception | 6.74% | 6.79% | 6.11% |
| 10 years | 6.08% | 6.50% | 6.45% |
| 7 years | 5.27% | 5.69% | 5.77% |
| 5 years | 4.89% | 5.26% | 5.68% |
| 3 years | 4.69% | 4.95% | 4.63% |
| 1 year | 6.78% | 6.99% | 7.01% |
Source: quantumamc.com
Fund Manager
Mr.Pankaj Pathak is the Fund Manager of this fund. He has been managing this fund since 1st March 2017. He has 12 years of experience in this field.
Who Should Invest in Quantum Liquid Fund?
Quantum Liquid Fund is suitable for a variety of investors including:
· Investors who have short-term investment horizons or are not willing to take many risks in their fixed-income allocation.
· Investors who want to park a large sum of money temporarily, say from a bonus, property sale, inheritance, etc., until they decide how to invest that corpus.
· Investors who want to stagger their investment in equity schemes through SIPs can park in liquid funds and opt for a systematic transfer plan (STP)
· Investors who want to keep contingency funds or emergency corpus in relatively low-risk debt schemes.
Why Invest in this Fund?
· The fund follows a disciplined research and investment process.
· It does not invest in real estate or securitized paper.
· It only invests in instruments with less than 91 days of maturity, which makes it less volatile.
· The assets of this fund are valued by the process of mark-to-market (MTM) valuation policy rather than amortization.
· It has one of the lowest expense ratios in its category.
Time Horizon
· This fund is suited for investors looking to park funds for a short term of up to 91 days.
Conclusion
The Quantum Liquid Fund is an open-ended fund that allows investors to invest at a relatively low interest rate risk and relatively low credit risk.
The fund is suitable for investors who wish to park their funds for a short-term time horizon to get a better return than what is usually offered on saving deposits.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
