Quantum Mutual Fund has launched its first fund of funds (FoF) offering – Quantum Equity Funds of Funds.
The scheme seeks to generate returns by investing in open-end diversified equity funds of Indian asset management companies other than Quantum MF. It can also keep up to 10 per cent of its assets in money market instruments.
Funds selected for investment will be at least 3 years old and sector/thematic funds will be avoided. The designated agency will be Quantum Information Services that will provide the recommended list.
The scheme will be managed by Arvind Chari who is also the fund manager for Quantum Liquid Fund. He is MMS (Finance) and M. Com. (Banking and Finance) from Mumbai University. Prior to joining Quantum AMC, he has worked with Tower Capital & Securities and KJMC Capital Market Services as Dealer – Fixed Income. He has also written research articles on various financial topics.
Established in December 2005, Quantum MF is still the second-smallest fund house with Rs 60 crore of assets under management (AUM) in May 2009. The fund house has abstained from frequent fund launches and has 3 equity funds till date: one each in the diversified equity, tax planning and index fund categories. Value Research has rated the Quantum Long Term Equity Fund at 4-stars. It is the only rated equity fund from the fund house.
Type: Open-End Equity Fund of Funds (FoF)
NFO Opens: June 26, 2009
NFO Closes: July 13, 2009
Plan/Options: Growth and Dividend (Payout and Reinvestment)
Minimum Application Amount: Rs. 5,000/-
Minimum Additional Application/Redemption: Rs 1,000/-
SIP Facility: Available on monthly basis for minimum Rs 1,000/-
Benchmark: BSE 200
Entry Load: Nil
Exit Load: 1.50 per cent for redemptions/switch-outs within 1 year
Annual Recurring Expense (maximum): 0.75 per cent (including investment management fee of 0.50 per cent).