Quant Mutual Fund announced the launch of the quant BFSI Fund, an open-ended equity scheme investing in banking and financial services-related sectors.
The scheme opened for public subscription on June 01, 2023, and will close on June 14, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.
Q. What kind of mutual fund scheme is this?
This is an open-ended equity scheme investing in banking and financial services-related sectors.
Q. What is the main objective of investing in this fund?
The primary investment objective of the scheme is to generate consistent returns by investing in equity and equity-related instruments of banking and financial services. However, there is no assurance that the investment objective of the Scheme will be achieved.
Sandeep Tandon, Founder and Chief Investment Officer, Quant Group said, “Quant BFSI Fund is designed to capitalize on the exciting prospects and potential growth within the banking and financial services industry including the fintech space, the quant BFSI fund presents a unique opportunity for you to maximize investment returns while diversifying your portfolio.”
Q. How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹5000 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:
| Instruments | Indicative Allocations (% of total assets) | Risk Profile | |
| Minimum | Maximum | ||
| Equity and equity-related instruments of companies engaged in Banking and Financial Services sector | 80% | 100% | Very High |
| Equity and equity-related instruments of companies other than those engaged in Banking and Financial Services sector | 0% | 20% | Very High |
| Debt and Money Market Instruments | 0% | 20% | Low to Medium |
| Units issued by REITs and InvITs | 0% | 5% | Very High |
| Foreign securities including ADRs | 0% | 20% | Very High |
Q. Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such banking and financial institutions (BFSI) funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
| Mutual Fund House | Name of the Fund |
| TATA Mutual Fund | Tata Banking and Financial Services Fund |
| SBI Mutual Fund | SBI Banking and Financial Services Fund |
| Baroda BNP Paribas Mutual Fund | Baroda BNP Paribas Banking and Financial Services Fund |
| Taurus Mutual Fund | Taurus Banking and Financial Services Fund |
| ITI Mutual Fund | ITI Banking and Financial Services Fund |
| Aditya Birla Sun Life Mutual Fund | Aditya Birla Sun Life Banking and Financial Services Fund |
| Nippon India Mutual Fund | Nippon India Banking and Financial Services Fund |
| Mirae Asset Mutual Fund | Mirae Asset Banking and Financial Services Fund |
| ICICI Prudential Mutual Fund | ICICI Prudential Banking and Financial Services Fund |
| HDFC Mutual Fund | HDFC Banking and Financial Services Fund |
| IDBI Mutual Fund | IDBI Banking and Financial Services Fund |
| Kotak Mahindra Mutual Fund | Kotak Banking and Financial Services Fund |
| LIC Mutual Fund | LIC MF Banking and Financial Services Fund |
| Source: MoneyControl | |
Q. How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the Nifty Financial Services TRI. The scheme is an equity fund investing in banking and financial services-related sectors. The Nifty Financial Services Index is designed to reflect the behaviour and performance of the Indian financial market which includes banks, financial institutions, housing finance, insurance companies, and other financial services companies.
The composition and methodology of the benchmark are such that, it is most suited for comparing the performance of quant BFSI fund. The AMC reserves the right to change the benchmark in the future if a benchmark better suited to the investment objective of the scheme is available.
Q. 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” is also “Nil”.
Q. Who will manage this scheme?
Sandeep Tandon, Ankit Pande and Sanjeev Sharma are the designated fund managers of this scheme.
Q. 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.
