NFO Alert: Quant Mutual Fund launches Quant Momentum Fund; all it is advisable to know

What sort of mutual fund scheme is that this?

That is an open-ended fairness fund scheme following the momentum theme. This product is appropriate for traders searching for

• To generate capital appreciation
• To speculate predominantly in shares exhibiting momentum traits.

The scheme will make investments no less than 80 per cent in fairness/equity-related devices of corporations with robust revenue potential primarily based on Quant Mutual Fund’s momentum thesis and goals to forecast the anticipated return of shares utilizing momentum attributes and auto-correlations to optimize the risk-return trade-off. A mix of rigorous quantitative methodologies, risk-based evaluation, and systematic portfolio development shall be used to realize optimum funding returns.

The fund is designed for traders with a long-term horizon, high-risk urge for food, and who’re prepared to take part within the fund home’s ‘momentum’ thesis which is mathematically constructed to determine winners repeatedly.

What’s the predominant goal of investing on this fund?

The first funding goal of the scheme is to realize long-term capital appreciation for its traders. This goal shall be pursued by strategically investing in a diversified portfolio of fairness and equity-related devices. The collection of these devices shall be primarily based on a quantitative mannequin meticulously designed to determine potential funding alternatives that exhibit the potential for vital capital appreciation over the desired funding horizon. There isn’t a assurance that the funding goal of the scheme shall be realized.

The fund is structured to learn from alternatives arising from market randomness. In finance, momentum is the empirically noticed tendency for rising asset costs or securities’ returns to rise additional, and falling costs to maintain falling. Momentum’s existence as a market anomaly is a puzzle that many main monetary theories discover difficult to decipher. Nevertheless, this presents a beautiful funding alternative that’s popularly utilized on a world scale by opportunistic traders.

How might one make investments on this scheme?

Buyers can make investments beneath the scheme with a minimal funding ofRs 5000 per plan/possibility and in multiples of Re 1. There isn’t a higher restrict for funding.

Underneath regular circumstances, the asset allocation of the scheme shall be as follows:

Are there related mutual funds available in the market?

To this point, just one asset administration firm (AMC) has launched such a fund. Samco Mutual Fundannounced the launch of the Samco Lively Momentum Fund, an open-ended fairness scheme in June 2023.

How will the scheme benchmark its efficiency?

The scheme’s efficiency could be benchmarked in opposition to the Nifty 500 TRI.

NIFTY 500 TRI represents the highest 500 corporations primarily based on market capitalization from the eligible universe. The NIFTY 500 TRI represents over 95 per cent of the free float market capitalization of the shares listed on the NSE. The index is a good illustration of the indicative universe of the portfolio of the Scheme. In view of the identical, the efficiency of the scheme shall be benchmarked with NIFTY 500 TRI. The Trustee/AMC reserves the suitable to alter the benchmark for the analysis of the efficiency of the scheme now and again, retaining in thoughts the funding goal of the Scheme and the appropriateness of the benchmark, topic to SEBI pointers and different prevalent pointers.

Are there any entry or exit masses to this scheme?

This scheme entails no “Entry Load”, which implies that traders would not have to pay something to park their earnings on this scheme.

The “Exit Load” could be charged as per the next:

– For redemptions/switch-outs (together with SIP/STP) inside 15 days from the date of allotment of models, regardless of the quantity of funding: 1%

Who will handle this scheme?

The fund shall be managed by Sandeep Tandon, Ankit Pande, Sanjeev Sharma and Vasav Sahgal.

Does the fund include any inherent danger?

The scheme entails “Very Excessive Danger” as per the small print talked about within the Scheme Info Doc and is finest suited to traders prepared to grasp that their principal shall be topic to very excessive danger solely. Nevertheless, traders ought to seek the advice of their monetary advisors in the event that they doubt whether or not the product is appropriate for them.

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Up to date: 01 Nov 2023, 04:44 PM IST