Quant Mutual Fund announced the launch of the Quant Manufacturing Fund, an open-ended equity scheme following a manufacturing theme.
The scheme opened for public subscription on July 26, 2023, and will close on August 08, 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/thematic equity scheme following a manufacturing theme.
Sandeep Tandon, CIO & Founder, Quant Mutual Fund said, “India’s ambition of realizing the $26 trillion economy presents multi-decade investment opportunities and aims to benefit from the exciting milestones during India’s transformation into a global design and manufacturing export hub. This fund will potentially benefit from the Indian government’s ‘Make in India’ drive and a wide choice of manufacturing industries across market caps offers many cyclical investment opportunities.”
Q. What is the main objective of investing in this fund?
The primary objective of the scheme is to generate long-term capital appreciation by investing in equity and equity-related instruments of companies that follow the manufacturing theme. 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 | High/Medium/Low | |
Equity and equity-related instruments of companies having manufacturing theme | 80% | 100% | Very High |
Other equity and equity-related instruments of companies other than having a manufacturing theme | 0% | 20% | Very High |
Debt & Money Market instruments | 0% | 20% | Low to Medium |
Foreign securities including ADRs/GDRs/Foreign equity and debt securities and Overseas ETFs | 0% | 20% | Very High |
Units issued by REITs & InvITs | 0% | 10% | Very High |
Q. Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such manufacturing 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 |
Navi Mutual Fund | Navi Nifty India Manufacturing Index Fund |
Kotak Mahindra Mutual Fund | Kotak Manufacture in India Fund |
Bank of India Mutual Fund | Bank of India Manufacturing & Infrastructure Fund |
ICICI Prudential Mutual Fund | ICICI Prudential Manufacturing Fund |
| Source: MoneyControl | |
Q. How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the Nifty India Manufacturing Index. The Nifty India Manufacturing Index is designed to provide investors with benchmarks reflecting companies in manufacturing sectors. Nifty India Manufacturing Index has an adequate representation of the same and would be the aptest benchmark for the scheme.
The Trustee/AMC reserves the right to change the benchmark for the evaluation of the performance of the scheme from time to time, keeping in mind the investment objective of the scheme and the appropriateness of the benchmark, subject to SEBI guidelines and other prevalent guidelines.
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, Sanjeev Sharma and Vasav Sahgal 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.
