NFO Alert: Quantum Mutual Fund launches Quantum Small Cap Fund; all you need to know

Quantum Mutual Fund announced the launch of the Quantum Small Cap Fund, an open-ended equity value fund scheme that seeks to generate long-term capital appreciation by investing predominantly in small-cap stocks. However, there can be no assurance that the investment objectives of the scheme will be realized. The scheme does not guarantee/indicate any returns.

The scheme opened for public subscription on October 16, 2023, and will close on October 27, 2023. The scheme re-opens for continuous sale and repurchase on November 10, 2023.

What kind of mutual fund scheme is this?

This is an open-ended equity value fund scheme predominantly investing in small-cap stocks.

What is the main objective of investing in this fund?

The investment objective of the scheme is to generate capital appreciation by investing predominantly in small-cap stocks. There is no assurance that the scheme's investment objective will be achieved.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of ₹500 per plan/option and 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:

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such small-cap equity funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the stocks invested in these kinds of funds. Some of them include:

How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked to the performance of S&P BSE 250 SmallCap TRI. The benchmark will be representative of the fund’s asset allocation and most suited for comparison for the performance of the scheme. The Trustee/AMC reserves the right to change the benchmark for the evaluation of the performance of the scheme from time to time, keeping in mind the investment objective of the scheme and the appropriateness of the benchmark, after obtaining relevant approval from SEBI.

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” would be charged in the order

• 10% of units If redeemed or switched out on or before 365 days from the date of allotment - Nil.
• Remaining 90% of units if redeemed or switched out on or before 365 days from the date of allotment – 1%
• If redeemed or switched out after 365 days from the date of allotment - Nil.

For any change in load structure, the AMC will issue an addendum and display it on the website/ISCs.

Who will manage this scheme?

Chirag Mehta and Abhilasha Satale are the designated fund managers of this scheme.

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.