Quantum Mutual Fund has worked on performance rather than chasing fund launches & distributions…
27-Dec-2012 •Research Desk
In 2006, this AMC experimented with a unique model of going sans distribution much before the entry loads were banned. The eight funds from its stable span across debt and equity. Two equity funds, Quantum Long Term Equity and Quantum Tax Savings, are highly rated schemes. The AMC has not chased fund launches and instead worked on fund performance, which reflects in the performance. The AMC has the key variables to be a credible choice for investors: good fund performance, a well-defined portfolio strategy, investor centricity and low cost.
Moreover, having funds with least expense ratio acts as a bonus for the additional returns schemes earn. Departing from the culture of star fund managers, the AMC has remained focused on the expertise of its research team that has so for done a commendable job. The belief that mutual funds should be bought and not sold has remained the focus for the AMC, which has worked hard over the past six years to establish itself purely on the basis of performance. Yet, the benefits of running an AMC in this model is yet to prove its worth, considering the `225 crore it manages.