Quant Mutual Fund announced the launch of the quant Dynamic Asset Allocation Fund, an open-ended dynamic asset allocation fund tracking the CRISIL Hybrid 50+50 Moderate Index constituents.
The scheme opened for public subscription on March 23, 2023, and will close on April 06, 2023, and will re-open for ongoing subscription and redemption within five business days from the date of allotment of units.
Q. What kind of mutual fund scheme is this?
This is a kind of open-ended dynamic asset allocation fund investing in equity and equity-related instruments including derivatives and debt and money market instruments.
Q. What is the main objective of investing in this fund?
The primary investment objective of the scheme is to provide capital appreciation by investing in equity and equity-related instruments including derivatives and debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be realized, as actual market movements may be at variance with anticipated trends.
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|
|Equity & Equity related instruments||0||100||Very High|
|Debt and Money Market Instruments, including Units of Debt oriented mutual fund schemes||0||100||Low to Medium|
|Foreign securities including ADRs/GDRs/Foreign equity and debt securities||0||35||Very High|
Q. Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such dynamic asset allocation funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
|Name of the fund||Three-year returns (in %)||Five-year returns (in %)|
|HDFC Balanced Advantage Fund||29.27||13.28|
|DSP Dynamic Asset Allocation Fund||12.26||8.29|
|Axis Balanced Advantage Fund||12.41||7.96|
|Invesco India Dynamic Equity Fund||15.36||7.40|
Q. How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the CRISIL Hybrid 50+50 Moderate Index.CRISIL Hybrid 50+ 50 - Moderate Index seeks to track the performance of a hybrid portfolio; the composition of the benchmark is such that, it is most suited for comparing the performance of the Quant Dynamic Asset Allocation Fund. If a benchmark better suited to the investment objective of the scheme is available, the trustees reserve the right to change the benchmark in future. The AMC reserves the right to change the benchmark in 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, Anikt Pande, Sanjeev Sharma and Vasav Sahga will be 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 suits them.