Is Quant Fund different from Quantum Mutual Fund, and should I invest in it?

Is it advisable to invest in Quant's mutual funds for the long term? I am a little doubtful whether it's a fraud as the name is similar to another AMC - Quantum.
- Manish

No, they both are different mutual fund companies. Quant is the new name of an earlier fund house, Escorts Asset Management. The change happened when a new promoter took control over the fund house, and from 2018-2019 it is being run with a new style. They have a completely different strategy and are not in any way related to Quantum Mutual Fund.

With their new strategy, Quant Fund has performed quite well in the last one-two years. Their style is entirely different as compared to other mutual funds. They use a quantitative model based on various inputs, and the role of fundamentals is nearly absent. They also play on momentum, and the strategy is updated with the change in market outlook. This has proved to be beneficial till now. When the stock market crashed in March 2020, their funds fell in line with other fund houses, but they outperformed others when the market started bouncing back. At a time when other mutual funds gave 40-50 per cent returns, several Quant funds rose around 100 per cent. But despite these impressive returns, it is still unknown how sustainable this performance is in the long run by following their unique model and strategy.

This article was originally published on August 23, 2021.