Quantum Asset Management Company launched a new fund offer (NFO) with Quantum Multi Asset Allocation Fund that opened subscription today on February 19, 2024. The NFO will run till March 1, 2024. It is a hybrid fund category diversifying across Equities, Debt instruments and gold-related instruments to reduce volatility. After the asset allocation fund category saw the second highest industrywide inflow of Rs. 22,415 crores in 2023 several asset management companies came up with NFOs in this category.
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 with a measured approach to equity markets along with diversification from gold and debt, thereby providing a rewarding and relatively smoother investment experience.”
Investors can invest a minimum investment of Rs 5000 and in multiples of Re 1 thereafter for lumpsum investments. For SIPs, it is Rs 500 with a minimum of 12 instalments per year.
Investors can also opt for the SIP route with a minimum investment of Rs. 100 for daily frequency or Rs. 500 for other frequencies. If investors redeem more than 10 per cent of investments within 1 year from the date of allotment, they face an exit load of 1 per cent.
Multi Asset Allocation Funds are strategically designed to allocate investments across diverse asset classes. Securities and Exchange Board of India (Sebi) mandates a minimum allocation of 10 per cent to three distinct categories such as equity, debt, gold or commodities, or REITs/InvITs units.
Quantum Multi Asset Allocation Fund Portfolio Allocation: The Fund house seeks to invest 35 to 65 per cent in Equity & Equity Related Instruments. The remaining 25 to 55 per cent will be invested in Debt & Money Market Instruments and 10 to 20 per cent will be invested in Gold Related Instruments.
The fund will predominantly invest in securities of the Nifty 50 index and other large-cap stocks for its equity component, sovereign and PSU debt securities across durations for its fixed income allocation and Quantum Gold ETF & Other Gold related instruments for its gold component.
Pankaj Pathak, Sr. Fund Manager, Quantum AMC said, “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 per cent tax slab stand to benefit significantly compared to traditional fixed deposits.”
Association of Mutual Funds of India (Amfi) data reveals that 11 funds in this category have delivered collective average returns of 26.54 per cent in the past year, making it the category's best performance historically. Over the past three years, the returns have been 15.7 per cent and in 5 years it is 17 per cent.
