The Investment Objective of the scheme is to achieve long-term capital appreciation by investing in Equity & Equity Related Instruments of companies following an Ethical Set of Principles. There is no assurance that the investment objective of the scheme will be achieved.

The Quantum Ethical Fund is for investors seeking long-term growth while adhering to value-based ethical standards. The fund invests in businesses that prioritize social good, ethical governance and not harmful to society.

The Scheme will follow an active investment strategy. The corpus of the scheme will invest in share of companies meeting an Ethical set of Principles including of Shariah, Jainism and other ethical principles encompassing a broad Ethical Framework. Such companies meeting the ethical criteria will be further screened through Quantum’s proprietary integrity framework. These companies will also undergo a financial evaluation based on a set of metrics to ensure they are financially sound before being included in the portfolio.

Shariah Investing’s unique approach is that financial transactions are fair and equitable. Financial rewards are correlated with the level of risk, efforts and responsibility and prohibits interest, excessive uncertainty / speculation, gambling and harmful businesses.

To follow such principles while investing the following sector and industry will be excluded alcohol, gambling, tobacco, vulgar entertainment, animation content provider, exhibition of films, media-broadcasting, media-content, production & distribution of films, mainstream/conventional financial services, non-halal food and beverages, narcotics substance or anything largely harmful to society.

Jainism has a unique approach to economic development which is strongly centred on sincerity and integrity' around Ahimsa and Karma, which 'encourages a light footprint in life’, where consumption is to be simplified and minimised.

Investing in line with Jain principles involves excluding certain sectors and industries and these exclusions are:

• Meat & Animal Products
• Poultry industries or any form of animal cruelty such as dairy
• Alcohol and tobacco
• Pharmaceuticals involving animal testing
• Weapons & Defence
• Gambling and betting
• Leather industries

The Quantum Ethical Fund offers long-term capital appreciation with a blend of ethical investing and financial integrity. It focuses on companies with strong fundamentals while emphasising highest standards of integrity and accountability. The Fund emphasis on diversification in varied sectors and investing in sustainable business that are financially sound to drive long term performance, making it a good option for investors seeking socially responsible investments with long term returns.

The Quantum Ethical Fund avoids sectors such as alcohol, gambling, tobacco, and vulgar entertainment. Media production, broadcasting, and film distribution are also excluded. The Fund also avoids conventional financial services, narcotics, leather, meat, and any form of animal cruelty, including animal testing. Additionally, the Fund screens out companies with interest-based debt exceeding 25% of total assets or interest income over 4% of total income.

If a company falls out of the Quantum Ethical Fund’s ethical Compliant Universe, the fund manager will exit the investment reassessing the portfolio, composition and risk exposure, the rebalancing maintains the target mix and aims to capitalise on new opportunities.

The minimum investment amount is Rs 500/-.

Like any other equity mutual fund scheme, capital gains are taxed based on holding period.

• Long-term Capital Gains (Holding period more than 12 months): Gains exceeding Rs 1,25,000/- in a year are taxable at 12.5% without indexation.
• Short-term Capital Gains (Holding period less than 12 months): Taxable at 20%.

For further details, please refer to the SID (Scheme Information Document)

Plans available under the Scheme:

• Direct Plan
• Regular Plan

Options under each Plan(s):

Growth Option - The income attributable to Units under this Option will continue to remain invested and will be reflected in the Net Asset Value of Units under this Option.

Below are the SIP frequencies available in this scheme:

Yes. You can make a switch transaction from any of your existing non-ETF schemes of Quantum Mutual Fund into Quantum Ethical Fund during NFO (till 3 PM on 16th Dec 2024).

You can submit your application online through AMC website /Channel Partners portal/Stock Exchanges/MFU/MF Central or offline to AMC/KFinTech collection centre.