'Our small-cap fund is the most liquid in its category'

Model-driven vs human-led portfolios?

Our filtration model, with integrity screens and liquidity filters, will continue to be a key decision-making platform (process/model-driven), complemented by solid fundamental research. An experienced fund management team will continue to deliver sensible returns with a predictable, process-led outcome for thoughtful investors.

Quantum Advisors—our sponsor—has been recognised as a signatory to the UK Financial Reporting Council’s 2020 Stewardship Code, making us the first Indian fund house to achieve this distinction.

Post-stress test safeguards?

Liquidity has always been a critical parameter in our selection process since inception. We also track how much we own of the free-float market capitalisation and have our own internal guardrails on maximum stock ownership within our portfolio.

We have not made any changes following the introduction of stress tests, especially in our small-cap fund portfolio. It remains the most liquid portfolio within the small-cap category.

On low-friction investing and investor churn.

Instant and easy access is a double-edged sword. While it has improved reach and convenience for investors, we have also seen many digitally enabled investors making impulsive decisions—entering or exiting based on market movements—without aligning with long-term goals or investment plans. A higher product-holding ratio (i.e., more than one product) improves the likelihood of investors staying invested through volatility.

We promote asset allocation as a key ingredient for long-term wealth creation, through the simple 12 | 20:80 rule: 12 months’ expenses in liquid funds for emergencies, 20 per cent in gold for diversification and 80 per cent in equity for long-term growth.

Rapid-fire questions

• One AMC you admire (not yours): PPFAS, as they also reflect our philosophy.
• One hot trend you’re glad to have skipped for your investors: Recently, defence thematic funds. Otherwise, there have been many fads that fade away with time.
• Beyond returns, one criterion you want investors to judge your AMC on: Transparency, integrity and trust.
• If not running an AMC, what would you be doing? Wealth management or a telecom/internet-led company.

This article was originally published on October 26, 2025.