Incorporated in the midst of the Global Financial Crisis, Quantum 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.
In this blog, we will explore its flagship product – Quantum Long Term Equity Value Fund.
Quantum Long-Term Equity Value 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 Process
- The scheme follows a bottom-up approach for stock selection with disciplined research and investment process.
- The scheme follows the thought process of investing in high-conviction stocks with long-term time horizons and hence has a lower portfolio turnover ratio.
Portfolio Composition
The portfolio is biased towards large-cap stocks, with 86.49% of the funds allocated to large-cap stocks and the remaining 13.51% to mid-cap stocks.
Significant sectoral exposure is to Financials, which accounts for more than one-third of the portfolio. The top five sectors hold more than 82% of the portfolio.
Source: Value Research
Top 5 Holdings for Quantum Long-Term Equity Value Fund
| Name | Weightage % |
| HDFC Bank Limited | 9.62 |
| ICICI Bank Limited | 6.80 |
| Infosys Limited | 4.78 |
| State Bank of India Limited | 4.73 |
| Eicher Motors Limited | 4.34 |
Source: Value Research
Performance for Quantum Long-Term Equity Value Fund
| Particulars | 1 Year | 3 Year | 5 Year | 7 Year | 10 Years |
| Quantum Long Term Equity Value Fund | 16.78 | 23.68 | 11.13 | 10.96 | 14.60 |
| S&P BSE 100 TRI | 13.08 | 22.20 | 12.76 | 13.94 | 15.21 |
| Equity: Value Oriented | 22.04 | 28.41 | 14.25 | 14.68 | 19.06 |
Source: Value Research
Since its inception, the fund has generated a CAGR (Compounded Annual Growth Rate) of 13.56%.
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 with effect from 01st April 2022.
- Mr. Christy Mathai has approximately seven years of experience and has been managing this fund with effect from 23rd November 2022.
Who Should Invest in Quantum Long-Term Equity Value Fund?
The fund is suitable for investors who are seeking
- Long-term capital appreciation.
- An investment opportunity that invests primarily in equity and equity-related securities of companies in the S&P BSE 200 index.
Why Invest in this Fund?
- The fund uses the bottom-up approach for stock selection to minimize risk.
- It follows disciplined research and investment process.
- It has a low portfolio turnover.
- It holds cash when stocks are overvalued and does not expose itself to derivatives.
- It has one of the lowest expense ratios in the industry.
Time Horizon
- One should look at investing for at least five years or even more.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion:
The Quantum Long-Term Equity Value Fund is an open-ended fund that allows investors to invest in undervalued equities.
Although it has underperformed its benchmark over the long term, the fund has shown outperformance in the recent past. Thus, it will be important to monitor how the fund performs in the upcoming future.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
