Quant Mutual Fund announced the launch of the Quant Teck Fund, an open-ended equity scheme investing in technology-centric companies.
The scheme opened for public subscription on August 22, 2023, and will close on September 05, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.
What kind of mutual fund scheme is this?
This is an open-ended equity scheme investing in technology-centric companies. This product is suitable for investors seeking
- Capital appreciation over the long term
- To generate consistent returns by investing in equity and equity-related instruments of technology-centric companies.
What is the main objective of investing in this fund?
The primary investment objective of the scheme is to seek to generate consistent returns by investing in equity and equity-related instruments of technology-centric companies. 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.
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 | 80% | 100% | Very High |
Debt & Money Market instruments | 0% | 20% | Low to Medium |
Units issued by REITs & InvITs | 0% | 5% | Very High |
Foreign securities including ADRs/GDRs/Foreign equity and debt securities | 0% | 20% | Very High |
Are there similar mutual funds in the market?
To date, no other asset management company (AMC) has launched any such fund focusing on the technology sector.
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the S&P BSE TECk TRI. The S&P BSE TECk TRI comprises constituents of the S&P BSE 500 that are classified as members of the media & publishing, information technology and telecommunications sectors as defined by the BSE industry classification system.
The composition and methodology of the benchmark is such that, it is most suited for comparing the performance of quant tech 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.
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”.
Who will manage this scheme?
Sandeep Tandon, Ankit Pande, Sanjeev Sharma and Vasav Sahgal are the designated fund managers of this scheme.
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.
