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  • January 10, 2018
    Quantum Equity Team

    The year 2017 started on an ominous note with the effects of demonetization lingering on. Sudden withdrawal of high currency notes (aprox 86% of currency in circulation) on November 8, 2016 disrupted business and commerce. Effect on informal economy was particularly disastrous, as they were completely dependent on cash economy.

    From utter confusion, where finance ministry and RBI were changing rules on daily basis to fight the fire unleashed by it, the script for stock markets changed as the year progressed. Before 2017 came to an end, S&P BSE Sensex touched new high of 34,000. As we update, S&P BSE Sensex has appreciated by 28.77% in 2017. This handsome return still pales in comparison to performance of mid cap and small cap stocks. S&P BSE Mid cap index rose 48.8%in calendar 2017. This is the 4th year consecutively when mid cap stocks have outperformed the large cap peers.

    Among sectors, consumer durables, real estate, metals and telecom clocked the highest return in calendar 2017. Healthcare index was worst performing with 0.92% gains followed by IT services at 11.94% return. Headwinds in terms of lower demand and regulatory scrutiny have respectively impacted both the sectors which predominantly depend on exports.

    FII money continues to come to India, though the pace has slowed than a few years ago. FIIs invested USD 7.73 Bn in 2017 as compared to USD 2.9 Bn in 2016. On the other hand, domestic institutions have been pouring money is stocks backed by strong inflow in their funds. MFs witnessed massive net equity inflow of INR 1,253 Bn (USD 19.5 Bn). This is 2.7 times net inflow of 2016 and highest in recent history.

    Macro-economic situation in India continues to remain stable. Inflation is likely to remain comfortable within 5% range, even as it has climbed from very low levels witnessed earlier. India’s trade deficit is also under control given crude prices have been range bound. Fiscal deficit, however, looks to breach target of 3.2%.Government has already spent 96% of budgeted deficit with another 5 months to go in the current fiscal year. Interest rates remain low currently, and there are upside risks to it. Current Government got a windfall of stability as crude prices fell from over $100 a barrel to $ 40-65. This saving could have been used to make the economy stronger.

    Some of key policy action from the Government included GST rollout w.e.f. July 1 2017. There still are glitches in the system, however it is expected to benefit the economy by higher compliance and simplified structure. PSU banks, which needed capital for quite some time, are likely to see INR 2.1 Trn infusion. In a surprise move, rating of Indian economy was revised upwards by Moody’s.

    Earnings of Indian companies is seeing some recovery after a long wait. In the past 3.5 years since new regime came to power, hopes of recovery have been belied. Analysts were forced to cut their earning estimates as reality was different from exuberant environment they created. Even for the current year, the actual earnings are likely to be lower than estimates put earlier.

    We see a good growth in earnings on the horizon. Global economic growth now seems fastest since the global financial crisis of 2008. This is likely to see better demand for exporters. Growth is picking up domestically as well, as recent data suggests. Impact of demonetization and GST led destocking are now behind us. Private capital spending, which has been subdued, is likely to pick up and drive GDP growth. Higher domestic as well as global recovery is likely to increase capacity utilization. Indian companies created capacity in boom years until 2011,while there was demand slowdown post 2008. Companies are likely to invest in capacity in not so distant future. They will also see pricing power benefiting their earning as capacities run out in interim, demand outstripping supply

    While impending earning growth is good news for equity investors, the unfortunate part lies in valuations. Most of the back ended recovery in profits is already reflected in current stock prices. Sensex PE ratio continues to trade above its historical average. There are few sectors and stocks which look to be priced sensibly for investor to make meaningful returns. High level of liquidity globally due to loose monetary policy by central banks has distorted prices across most asset classes. The situation can change in future as few central banks are raising rates while some others are reducing the size of economic stimulus.

    We remain long term bulls on the Indian economy. It is likely to be one of fastest growing economies for many years to come. Consumption and infrastructure investments are themes for India which have long legs. Being bottom up investors, we are cautious in the near term as valuations are a challenge. If the markets fall anytime, we will use the opportunity to fully invest our cash. Retail investors can continue to invest through systematic plans However, large lump sum investment should be discouraged at this time.

    Data Source: Bloomberg


    Disclaimer, Statutory Details & Risk Factors:

    The views expressed here in this article are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

    Mutual fund investments are subject to market risks read all scheme related documents carefully.

    Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts 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. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.

  • January 10, 2018
    Quantum Fixed Income Team

    The year 2017 had been an exciting one for both bulls and bears in Indian bond market. The year started with the so called “reflation” story as global bond yields and commodity prices rose sharply post Donald Trump’s victory on expectation of higher global growth and inflation pickup. The Indian bond yields followed the global yields on the upward ride which was further accelerated by the RBI’s stance change on monetary policy. RBI changed its monetary policy stance to Neutral from accommodative, against market expectations, indicating equal chances of rate cuts and rate hikes.

    Part of the global reflation trade fizzled out by mid of year and at the same time the post-effects of demonetization and pre-effects of GST became visible on distorted macro data points. Inflation and growth fell to multi-year low which forced RBI to cut policy rates in August by 25 basis points to take the Repo rate to 6.0% which also induced sharp rally in bond markets with the 10 year bond yield again moving below 6.5%. In the last quarter, bond market remained under bearish trap on rising oil prices and increasing US Bond yields. Moreover, the RBI also turned excessively cautious over inflation and market participants also started pricing in possibility of fiscal slippage amid shortfall in revenues from RBI dividend and GST Tax revenues.


    (Source – Bloomberg, Quantum Research)

    Going into 2018, we can see the positive bond story of last four years turning. Inflation trajectory is showing signs of reversal, external account (Current Account Deficit) is threatened by increasing oil prices and fiscal position is facing challenge from government’s dilemma over boosting growth and supporting farm incomes with an eye on the 2019 elections.

    Despite cutting rates in August, RBI had maintained a cautious stance over inflation throughout the year which got further intensified towards year end. Now, question is whether RBI’s concerns are real and it warrants a rate hike in 2018? Will government compromise on fiscal consolidation and policies will be based on political considerations ahead of 2019 general elections? How will policy normalization in advance economies affect the capital flows into emerging markets?

    Although inflation is showing some signs of firming up, but RBI’s concerns over it seem overblown especially in an environment when economic growth is subdued and industries are going through very low capacity utilization. Rural wages are growing at muted pace. Rising oil price has emerged as a risk but considering the changing market dynamics in this sector, we do not expect recent trend to sustain. Nevertheless we are concerned about any sharp rise in minimum support prices of food items amid farmers’ protests or any supply side shocks. Consumer inflation may rise above 5.5% by mid-2018 on distorted base effect but it will likely average around 4.5% in the year and remain anchored below 5% in 2019. In last few years, government has implemented various structural reforms to address supply side issues in agriculture market. The effects of those will be more visible in next two years.

    We expect that RBI will maintain status quo on rates because of two factors. First, the high real rate (Repo Rate minus CPI Inflation) is likely to sustain which will keep the demand side well anchored. Second, the growth recovery is in nascent phase and excessive hawkishness on policy front can hurt the recovery process.

    The other major risk on investors mind is coming from the possibility of government deviating from fiscal consolidation roadmap. We cannot rule out the possibility of a slight increase in fiscal deficit next year. But that would not be a signal of government moving away from its commitment on fiscal consolidation. Even a slight increase in fiscal deficit may not materially alter the macroeconomic landscape if that expenditure goes into productive sectors. We will be more concerned if the government turns the policy focus more towards political consideration than economic sense, ahead of general election in 2019. However, considering Mr. Modi’s confidence in getting reelected, they may be wary of taking any step which could create bigger problems in the next term.

    After five quarters of deceleration, economic growth is now showing signs of revival. We expect the growth will continue to recover but at gradual pace. Government has implemented various structural reforms in last few years to improve business environment in country. One of the major move by government to boost growth is recapitalizing the public sector banks which have been struggling with problem of stressed assets.

    Governments bank recapitalization plan is a positive move in a direction to kick start the credit cycle but it could distort the bank’s demand for government debt. Currently, the public sector banks hold government securities over 30% of their NDTL (Net demand and time liabilities) against the regulatory requirement of 19.5%. As credit growth picks up this proportion may fall which is a likely case in 2018. Additionally, the recapitalization bond in bank’s books might also reduce their appetite for other bonds, though the structure of recapitalization bonds is still not clear.

    Foreigners have been positive on Indian bonds since 2014. Fiscal consolidation, Real Rate targeting, high FX Reserves and falling oil prices have been the foundation of the India bond story. Since start of 2014 till November 2017 foreign investors have poured in around USD 46 billion in Indian bond market despite withdrawal of quantitative easing and rate hikes in US. But will these flows continue in next year?


    (Source – Bloomberg)

    Given the RBI’s commitment to maintain high real rates and continued progress on reforms, we expect foreigners will continue to favor Indian bonds. But flows may slow down in 2018 amid increased oil prices and risk of fiscal slippage. Moreover, we also need to be watchful of the global central banks becoming more synchronized over global growth/inflation outlook and policy actions.

    Over the medium term we will be monitoring the fiscal benefits coming from various schemes like GST, Direct Benefit Transfer and Aadhar. DBT and Aadhar linking have significant potential to plug the loopholes in the system of welfare payments. As per government’s estimates even one third achievement in DBT has saved the government Rs. 650 billion. So as it expands it will likely reduce government’s expenditure on welfare schemes. Aadhar linking and GST will also provide tax authorities better information access and might lead to higher tax base over time.

    If GST compliance improves it might provide government with enough resources to spend on rural sector without increasing fiscal deficit. It could also lead to further reduction in GST rates over the period which will have positive effect on inflation.

    Bond markets have enjoyed a sharp rally in last four years which has now come to an end. Indian bond yields have increased quite a bit in the last 5 months. The 10 year government bond is now trading near 7.2%; which was at 6.4% in August.

    The past year had been a sour reminder to investors that bond funds do carry market risk and can even return negative in adverse times. To recollect, at the start of this year in our 2017 outlook note, we had cautioned investors to “lower their return expectations from bond funds as the best of the bond markets were behind us. Capital gains would no longer be the driver of bond returns and investors should also prepare themselves for capital losses”. At that time in December 2016, the 10 year bond yield was 6.3% and the entire government bond market was yielding below 7%.

    But now with most of the bond yield curve above 7%, the valuations have improved from medium term prospective. However, we still remain cautious as yields could rise even higher from current levels amid various uncertainties. We advise investors to have a longer time frame as far as bond funds are concerned and should also consider the possibility of capital losses in short term.

    For investors who are looking for short term savings are better off with liquid fund. After a year of huge surplus, banking system is now close to neutral liquidity situation. We expect the liquidity condition to turn into deficit mode by next quarter. It could push short term rates higher and provide opportunity to reprice short term assets at higher rates. In this scenario, liquid fund returns might improve and it could become surrogate to fixed deposits for short term savers.

    Data Source: Bloomberg, RBI


    Disclaimer, Statutory Details & Risk Factors:

    The views expressed here in this article are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

    Mutual fund investments are subject to market risks read all scheme related documents carefully.

    Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts 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. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.

  • December 27, 2017
    Quantum Alternative Investments Team

    “Déjà vu” – gold market in 2017 seemed like 2016 all over again. The first half saw gold prices move up gradually only to give away some gains at the end of the year. The correction from middle of September was attributed to optimism surrounding rate hikes. As the U.S. stock market hit numerous records and optimism grew over President Donald Trump’s tax reform helped sustain the declining momentum. Gold prices pared performance, ending the year with +7% gains aided by weakness in dollar. Not only were the gains better as compared to the low yielding fixed income instruments in the developed world, but also proved resilient in a risk on environment where equities kept ticking higher to record levels each day.

    Central banks continue with their monetary experiment of adding liquidity which is nothing but fueling asset markets, suppressing volatility and in process has temporarily created an uneasy calm in financial markets. The frivolity is reflected in equity and bond markets globally where risk has been completely mispriced. Equities are looked upon as without an alternative, trillions of dollars are yielding negative today and credit spreads are at historic low levels. It wasn’t just the Federal Reserve; the European Central Bank (ECB) and the Bank of Japan have both grown their balance sheets more than the US has. With the newly created money they have been bidding asset prices higher. The Bank of Japan openly deals in the forex, debt and equity markets, buying ETFs on a very regular basis and becoming one of Japan’s largest public shareholders. The ECB has spared any bond it can justify buying under its rules. According to Business Insider, global central banks are on pace to purchase an astounding 3.6 trillion dollars in stocks and bonds in 2017. The economic boom created by monetary inflation and suppression of interest rates has led to false impression of a healthy economy.

    Rekindled hopes for a US renaissance resulting from a supposedly pro-business, nationalistic reflation policy were able to generate the required change in sentiment which bodes well for asset prices but does little for the real economy. The so called Tax reform is the biggest example which increases the deficit, is regressive, and will further widen income inequality. Most CEOs say they will use any tax savings for stock buybacks or dividends, not new hiring or expansion. It leaves low- and middle-income workers with no meaningful tax benefit and hence does little good for overall economy. This means the current ebullience on Wall Street relating to growth optimism is about as far offside as possible.

    The dollar rallied for many years on the prospect of Fed tapering. When it ultimately started, the dollar fell. Now we’ve started the process of taper talk at the ECB, driving dollar weakness. This cyclical phenomenon has been a strong factor helping gold besides investors buying gold for diversification on economic and geopolitical worries.

    Outlook

    The trickle-down theory applied by central banks in the hope that by giving boost to asset prices they would create wealth that would further trickle down to the bottom 50% of the US population or to Main Street. In reality, it did little to boost consumption and largely increased disparity by benefitting the asset owners’ i.e. the wealthy. As a result, US stock market as a percentage of GDP is now far bigger than it was at the housing bubble’s peak, and it’s rapidly approaching the dot-com bubble peak.

    We believe that the absence of the often-quoted sustainable economic recovery is one factor to blame for the seeming reluctance at the Fed. The number of people sitting on the sidelines rather than looking for work understates an unemployment rate that counts only those who are actively looking for work but can’t find it. Total consumer debt as a percentage of disposable income is the highest it has ever been – over 26%. The savings rate has fallen to a 10-year low. Consumers are stretched, and there is just not the buying power. The drivers of this year’s growth are probably transient; and that the structural foundation of the US economy is weakening. The cost of living for people at the median income level and below is outpacing wage growth and leaving the average household struggling to stay even. The continuing declining trend in bank loan growth combined with the flattening of the yield curve does raise eyebrows over the cyclical optimism that Fed often states. The outlook for the economy isn’t as upbeat as it seems on surface. We might be staring at peak growth and will probably see an incremental decline in economic growth rates over the course of next year and further.

    However, the Fed seems to be keen to use the new euphoria on the markets in order to push the normalisation of monetary policy. We don’t expect real rates to move up too much. After the December increase in rates, there would perhaps be another two hikes in 2018 at maximum. But we think there is a considerable risk that there will only be one more hike next year. By contrast, the so-called dot-plot of individual policymakers shows they envision three more next year.

    Should the current expansion fail to become the longest in history and US GDP growth indeed turn downward over the next year, we believe the consequences could be grave. The knee-jerk reaction by the government and the Fed would definitely comprise renewed stimulus measures in order to stem the downfall, which implies a complete U-turn in monetary policy. Currently, financial markets are almost exclusively focused on the planned normalization of monetary policy. Almost no-one seems to expect an impending recession or a return to loose monetary policy. Investors will do well to remember that, so far, the Fed has been behind the curve and only delivered when markets brought it on a silver platter. Since the normalization of monetary policy hasn't progressed sufficiently yet, renewed stimulus measures would probably shake market confidence in the efficacy and sustainability of the unconventional monetary experiments applied to date.

    It remains undisputed that significant low-cost liquidity drives asset prices higher. Logically, it also makes perfect sense that the withdrawal of this low-cost liquidity would also impact asset prices in the opposite direction. As we get closer to a much wider monetary tightening next year with $420 billion to be sucked out by the Fed and about $500 billion less in the way of buying from the European Central Bank. The impact of lesser money will be over time felt by the markets until then we expect the euphoria on tax cut optimism, liquidity and higher asset prices to continue for some more time in the next year and will likely recede by the second half of the year and that is when gold should really start doing well.

    The debt markets globally have not improved since the Global Financial Crisis. They have gotten more problematic. Like, for years, European governments have kicked the can down the road building up their debts thanks to the extremely expansionary monetary policies of the ECB. The structural problems like over-indebted governments, bubble sized public sectors, public debt loaded insolvent banking sectors or inflexible labor markets have not been solved. Indeed, the ECB´s policies permitted to delay the solution of these problems. Even China’s delicate rebalancing between deleveraging and growth is fret with risks. There are several threats to present global macroeconomic conditions, ranging from heightened political risks, massive increases in global debt, erroneous central bank and government policies. At the other end, Bitcoin’s surge is attracting investor interest toward the cryptocurrency and it is clear that money that might otherwise have gone into gold plays of late has been attracted to the crypto bubble phenomenon. However, Stocks and cryptocurrencies both could end up being supportive influences for gold. Both investment demand and prices will rise further the next time the economic and political environment inspires investors to rush even more dramatically back to gold.

    The world continues to remain in state of great disequilibrium, both with respect to the global economy and geopolitics as well. The fallout of the geopolitics globally seems to now cap the downsides in gold. Given the macroeconomic picture, gold will be a useful portfolio diversification tool and thereby helping you to reduce overall portfolio risk.

    Source: Bloomberg


    Disclaimer, Statutory Details & Risk Factors:

    The views expressed here in this article are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

    Mutual fund investments are subject to market risks read all scheme related documents carefully.

    Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts 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. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.

  • August 14, 2017

    Transparency at all Times

    First and foremost Happy Independence Day to all our investors.

    This year marks 70 years of India being a free nation as we celebrate our 71st Independence Day. Much has changed from the time Pandit Nehru took the reins of an independent India. An economy, for which a 4% growth was considered great, has now grown leaps and bounds. India has evolved from a predominantly agriculture driven economy to a manufacturing and services driven economy. Progress has been made, though not as rapidly as we would like, but we hope that the country will move in the right direction in the long term.

    In the world of Mutual Funds, a lot has changed for good and many new norms have been introduced by the market regulator SEBI to make the mutual funds a suitable investment avenue for investors. With an aim to bring in greater transparency in dealings of mutual funds, last year SEBI asked AMCs to disclose the absolute commission paid to the distributors as against the investments garnered from subscribers in each MF scheme as a part of Consolidated Account Statement. This was one of the many positive reforms undertaken by the Regulator. While we hope SEBI continues setting rules that benefit investors, there is one place we are looking forward to the market regulator focusing on and that is using Mark to Market (MTM) for NAV of Liquid funds. Why is this important? Let’s go back in year 2013. Liquid funds had felt the jolt in the month of July, 2013. This happened when the RBI, on 15th and 23rd July 2013, decided to introduce liquidity tightening measures to address the issue of currency volatility and depreciation. As a result of these liquidity tightening measures, the liquid funds saw a fall in their NAV, as short term interest rates rose sharply.

    The NAV of the Quantum Liquid Fund (QLF) plunged on 16th July, 2013 then regained some ground as market stabilized and, due to volatile markets, fell down again.

    Given that the QLF NAV is completely MTM (Marked to Market), as compared to its peers the impact of these market movements are felt daily and thus the movement in the NAV will remain exaggerated till the markets settle down again. As investments are MTM in QLF, the impact of a large redemption would be equally felt by all investors as against its peers who follow amortization process where redemptions impacts the investors who remain invested in the fund.

    Since the Quantum Liquid Fund invests in money market and debt instruments of less than 91 days maturity period, the fund relies largely on the accrued interest income from its securities to derive value rather than from capital gains. Following the process of amortization, as is the normal method of evaluation of the assets of a Liquid Fund when valued on a daily basis does not tell the investor whether the reported NAV is actually the current transactable NAV. Which means that if the fund is to be liquidated tomorrow, whether the assets would fetch the same valuation as noted in NAV cannot be affirmed as market values of the assets might be higher or lower than the current amortized value depending on the current market interest rates. Since, June 2012 Quantum Liquid Fund was able to move towards fair value method of MTM, owing to the availability of market traded prices in a transparent manner. All this, only to ensure, fair treatment to all investors seeking to purchase or redeem the units of the scheme at all points of time.

    Transparency to our investors is the cornerstone of the Quantum philosophy; when the NAV of the Liquid Fund fell, we immediately informed our investors of the same and warned them that such falls could happen in future. Further, when this happened the second time we once again shared a communication explaining the fall in our Quantum Liquid Fund NAV.

    Therefore at Quantum Mutual Fund we believe in the principles of honesty and we need to follow a disciplined investment process, adhere transparency and offer low cost products that helps you meet your financial goals.

    Product Labeling
    Name of the SchemeThis product is suitable for investors who are seeking*Riskometer
    Quantum Liquid Fund
    (An Open- ended Liquid Scheme)
    • Income over the short term

    • Investments in debt / money market instruments

    Investors understand that their principal will be at Low risk

    * Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


    Disclaimer, Statutory Details & Risk Factors:

    The views expressed here in this article are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

    Mutual fund investments are subject to market risks read all scheme related documents carefully.

    Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts 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. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.

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