Diversification - The Spice of Life Wednesday, Mar 07, 2018
We would like to express our sincerest appreciation for the trust you have placed in us. We hope your investments in one or more of Quantum’s funds have helped you in building wealth and achieving your financial goals for the long run. We often get peppered with questions on our other offerings, and realized a substantial number of you have interest in knowing more about the Quantum Multi Asset Fund, which balances your portfolio in three asset classes – Equity, Debt and Gold. And so we would like to take this opportunity to help you understand this unique fund that can help you diversify and save for a rainy day. It’s a fund that minimizes the risk of investing in one asset class, because it invests across three asset classes, thereby taking care of your asset allocation needs too.
What do you mean by asset allocation? Good question!
Let’s take an analogy of grocery shopping. You’ve headed to the supermarket to stock up on your grocery for the month. You quickly pull out a shopping trolley and begin to scan the numerous shopping alleys – there are spices, vegetables, grains, meats, desserts, you name it. Think of asset allocation as diversifying your portfolio the same way you diversify your diet. A balanced fund/multi-asset fund would be the trolley in which you’ve placed all the items that you’re going to purchase that complete your diet.
But you don’t do that every time, do you? Sometimes, you may be in the mood to go home and watch TV with a big bowl of popcorn and ice cream. You’re not in the mood to be healthy. And that’s fine! Think of that as an allocation to, say, only equities. That on its own can be a very good thing, but it’s not advisable to construct your entire diet based on that, right? You need a good mix of healthy stuff in there too – especially as you grow older and a bit more caution is warranted!
Hence the Quantum Multi Asset Fund is a fund that consists of three such varieties, aiming to generate returns while reducing volatility. If you were to only load your shopping trolley with just snacks, it would lead to an unhealthy diet. Similarly, investing all your assets in just one asset class might not be healthy from an investment point of view.
Diversification is the greatest power in a multi-asset fund as it helps you balance your portfolio.
The key objective of the Quantum Multi Asset Fund or QMAF, is to generate modest capital appreciation while trying to reduce risk (by diversifying risks across asset classes) from a combined portfolio of equity, debt / money markets and Gold schemes of Quantum Mutual Fund. The combination of the asset classes of Equity, Debt and Gold will ensure you that all your investments in a multi-asset fund will reduce the pressure of market fluctuations and give your money the benefits of all the 3 asset classes. Investing in QMAF is less risky than pure equities. Thus, investing in such a fund can help you maintain a healthy investing style in the long run.
Do remember we are just a phone call away on 1800-22-3863 or you may drop us a line on CustomerCare@QuantumAMC.com. We are only too happy to help you achieve your financial goals.
|Name of the Scheme||This product is suitable for investors who are seeking*||Riskometer|
|Quantum Multi Asset Fund|
(An Open Ended Fund of Funds Scheme Investing in schemes of Quantum Mutual Fund)
|• Long term capital appreciation and current income |
• Investments in portfolio of schemes of Quantum Mutual Fund whose underlying investments are in equity , debt / money market instruments and gold
Investors understand that their principal will be at Moderately High Risk
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.