scorecardresearchNFO Alert: Quant Mutual Fund launches Business Cycle Fund; all you need

NFO Alert: Quant Mutual Fund launches Business Cycle Fund; all you need to know

Updated: 15 May 2023, 12:57 PM IST
TL;DR.

Quant Mutual Fund announced the launch of the Quant Business Cycle Fund. The scheme opened for public subscription on May 12, 2023, and will close on May 25, 2023.

Quant Mutual Fund announced the launch of the Quant Business Cycle Fund

Quant Mutual Fund announced the launch of the Quant Business Cycle Fund

Quant Mutual Fund announced the launch of the Quant Business Cycle Fund, an open-ended sectoral or thematic fund scheme that seeks to generate long-term capital appreciation by investing with a focus on riding business cycles through allocation between sectors and stocks at different stages of business cycles.

The scheme opened for public subscription on May 12, 2023, and will close on May 25, 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 sectoral or thematic fund that invests predominantly in Indian markets with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles. Capital appreciation in the long run is the primary focus of putting money in this fund.

Q. What is the main objective of investing in this fund?

The scheme seeks to generate long-term capital appreciation by investing with a focus on riding business cycles through allocation between sectors and stocks at different stages of business cycles. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. The scheme does not assure or guarantee any returns.

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 & equity related instruments including equity ETFs selected on the basis of the business cycle 80100Very High
Other equity and equity-related instruments including equity ETFs020Very High
Debt and money market instruments including debt ETFs & Gold & Silver ETFs 020Low to Medium
Foreign securities including ADRs / GDRs / Foreign equity and debt securities 020Very High
Units issued by REITs and InvITs 010Very High

Q. Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such business cycle 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
HSBC Mutual FundHSBC Business Cycle Fund 
HDFC Mutual Fund HDFC Business Cycle Fund
ICICI Prudential Mutual FundICICI Prudential Business Cycle Fund 
Axis Mutual Fund Axis Business Cycles Fund 
Kotak Mahindra Mutual Fund Kotak Business Cycle Fund
TATA Mutual FundTata Business Cycle Fund 
Baroda BNP Paribas Mutual Fund Baroda BNP Paribas Business Cycle Fund 
Source: MoneyControl 

Q. How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked against the NSE 500 TRI Index. The scheme is an open-ended equity scheme following a business cycles-based investing theme.

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, Anikt Pande, Sanjeev Sharma, and Vasav Sahgal are the designated fund managers of this scheme.

Q. Does the fund contain any inherent risk?

The scheme involves “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 high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

 

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First Published: 15 May 2023, 08:32 AM IST