Posted by
subbu's solution on
Tuesday, March 09, 2010
1. Is there any way that I can purchase funds direct online? Does this require manual paperwork or is it only online? How easy is it to buy and sell? - Hariharan
There are 3 parts to this question, so will split my answer accordingly
Part 1: Is there any way that I can purchase funds direct online?
Well, you can invest online directly with Quantum Mutual Fund through our site – www.QuantumAMC.com. There are several other sites also which offer the same facilities through which you can purchase Mutual Funds online. If you have access to a trading terminal, or your stock broker has registered with the BSE StAR MF or NSE’s MFSS platforms then you can buy and sell mutual funds using these points as well.
Part 2: Does this require manual paperwork or is it only online?
Investing with Quantum requires no manual paperwork to purchase funds, once you register online on our site, you can submit a scan of the attested copy of your KYC / PAN card. We will then verify the same and enable purchases on your account.
However to switch between funds and to redeem your units you will have to send us a signed PIN agreement along with a hard copy of the pre-filled application form. (Manual process)
Part 3: How easy is it to buy and sell?
With Quantum, once all your documentation is submitted then you can easily purchase, sell and switch funds from www.QuantumAMC.com.
To understand how to invest online on www.QuantumAMC.com you can view our quick Demo.
2. When I wanted to invest more than Rs. 1 lakh (over and above tax benefit limit of 80 C), where I should invest, QLTEF or QTSF? Which fund will give more return (excluding tax benefit gain)? - Shailesh Raval
We are neutral to either of the funds, as the portfolios are likely to be similar. Since the portfolios are likely to be similar the returns are may also be similar. However, you should be aware that QTSF would have a lock-in period of 3 years.
3. Does Quantum have recommendations / ratings on funds based on fund quality, composition and churning? - Hariharan
We have recommendations/ratings on funds. However, these ratings are for internal consumption. This data is used as a key tool in building the Quantum Fund of Funds portfolio.
4. How do I create my portfolio? Please advise on how to pick good stocks. - Satyanarayan Das
Picking stocks just requires common sense. However it is a time consuming activity and you should venture into it only if you have the time, energy and patience.
If you do not have time and energy to search for stock ideas and continuously monitor, then it would be better to invest your savings in a diversified mutual fund. Investing in a diversified equity mutual fund requires some basic understanding of the characteristics of equity and the risk levels of investing in equity.
Since India is a growing economy, opportunity to invest in stocks can arise due to the following reasons:
a) Younger working population- hence more higher consumption of goods - TV, vehicles, edibles, FMCGs, residential apartments, etc .
b) Higher pay packets: which could result in greater spends on more expensive products.
c) High consumption tendencies: arising out of higher disposable incomes. More to spend, so more consumption.
d) Lower cost of borrowing, so buying a house and other assets on credit are not as risky as earlier.
e) FDI money is coming into India and is being invested in the real economy, thus creating jobs.
f) Higher Government spending : can create opportunities in power, engineering and construction sector.
g) Rural wealth is generally good, with mechanisms in place to support the rural economy even if the rains are poor: consumer staple companies that sell daily use products may benefit from this increased reach and desire of rural people to change their buying habits.
The above list is not exhaustive, and is a broad indicator of opportunities. Apart from the above there could be opportunities in financials- banks, stock broking companies, and in utilities- such as gas and power companies.
Hence in India, attractive stocks can be found in consumption, export and infrastructure space. While this is easy to understand, you have to spend considerable time and effort in estimating the intrinsic value of the company. This requires an understanding of the business along with knowledge of the economic cycles.
All of the above may help you to identify stocks. However construction of a portfolio requires additional skill sets.
Identifying stocks is like getting the ingredients in place, but portfolio construction is like making a recipe. If the ingredients are not in correct proportions then the end recipe could be disastrous.
Disclaimer:
The responses expressed here are strictly for information and explanation purpose only. The responses are meant for general reading purpose and not to be considered as an investment advice / recommendation. This information is not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments. The Sponsor, The Investment Manager, The Trustee, their respective directors, employees, affiliates or representatives shall not be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in the responses.
Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trust Act, 1882. Sponsor: Quantum Advisors Private Limited.(liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited Investment Manager: Quantum Asset Management Company Private Limited
Mutual Fund investments are subject to market risks. Please read the Scheme Information Document / Key Information Memorandum / Statement of Additional Information /Addenda carefully before investing.