Quantum Equity Fund of Funds - Direct Plan Growth Option
Category | Other Scheme - FoF Domestic |
NAV | 28.934 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Other Scheme - FoF Domestic |
NAV | 28.934 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Other Scheme - FoF Domestic |
NAV | 28.934 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Other Scheme - Other ETFs |
NAV | 951.1967 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Other Scheme - Gold ETF |
NAV | 2055.7401 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Debt Scheme - Dynamic Bond |
NAV | 10.6804 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Debt Scheme - Dynamic Bond |
NAV | 15.6928 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Debt Scheme - Dynamic Bond |
NAV | 10.5925 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Debt Scheme - Dynamic Bond |
NAV | 15.7458 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Debt Scheme - Liquid Fund |
NAV | 10.0206 |
Repurchase Price | |
Sale Price | |
Date | 10-May-2020 |
Category | Debt Scheme - Liquid Fund |
NAV | 26.9881 |
Repurchase Price | |
Sale Price | |
Date | 10-May-2020 |
Category | Debt Scheme - Liquid Fund |
NAV | 10.0020 |
Repurchase Price | |
Sale Price | |
Date | 10-May-2020 |
Category | Debt Scheme - Liquid Fund |
NAV | 10.0222 |
Repurchase Price | |
Sale Price | |
Date | 10-May-2020 |
Category | Debt Scheme - Liquid Fund |
NAV | 27.0385 |
Repurchase Price | |
Sale Price | |
Date | 10-May-2020 |
Category | Debt Scheme - Liquid Fund |
NAV | 10.0070 |
Repurchase Price | |
Sale Price | |
Date | 10-May-2020 |
Category | Equity Scheme - Sectoral/ Thematic |
NAV | 8.52 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Equity Scheme - Sectoral/ Thematic |
NAV | 8.56 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Equity Scheme - Value Fund |
NAV | 39.89 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Equity Scheme - Value Fund |
NAV | 40.12 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Equity Scheme - Value Fund |
NAV | 40.26 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Category | Equity Scheme - Value Fund |
NAV | 40.6 |
Repurchase Price | |
Sale Price | |
Date | 08-May-2020 |
Coronavirus or Covid-19 is showing no signs of receding. On the contrary, the number of cases is increasing by the day and the situation is rather depressing, as almost every region of the world and country is infected.
Sadly, there is no antidote or a vaccine conclusively developed to fight this deadly pathogen yet. And according to the World Health Organisation (WHO), Coronavirus will be with us for a long time. Most cases are still in the early phase of the epidemic and some countries which were affected early in the pandemic, are now seeing a resurgence in the number of cases, said the WHO Chief.
COVID-19 is truly playing havoc and may be followed with a financial crisis owing to the lockdowns imposed to contain the spread. The risk of global recession undeniably looms large. "This crisis is like no other", as what the International Monetary Fund's (IMF), Chief Economist, Ms Gita Gopinath wrote in the foreword to the World Economic Outlook, April 2020.
The graph above depicts the S&P BSE Sensex falling off the cliff and investors' wealth being eroded. Since the all-time high of the S&P BSE Sensex (42,273.87 points made on January 20, 2020), we have fallen more than -25% and overall sentiments seem downbeat and volatility has heightened.
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On a year-to-date basis, Indian equity is down nearly -23.2% (as of April 27, 2020), while gold -- with uncertainty looming around the world -- has exhibited its sheen and demonstrated its trait of safe haven and an effective portfolio diversifier, clocking nearly +5.0% absolute return as of April 27, 2020.
The graph above validates the importance of tactical asset allocation. The key lesson here is: all asset classes will not necessarily move in the same direction (up or down) always - over the long-term; some may even move in the opposite direction as what we have seen in the recent past (in the case of equities and gold).
As we (the world) continue to fighting COVID-19 and the aftereffects of it are conceivable, a further correction cannot be ruled out and the bottom is unknown. COVID-19 is likely to impact corporate earnings amidst a time when India is already facing slowdown blues. As people are quarantined, demand would remain muted and inflation risk will begin to surface, particularly in food prices.
So, although the current levels offer a decent value-buying opportunity, skewing your portfolio completely to equity as an asset class could endanger wealth creation. In such times you, as an investor, need to follow tactical asset allocation while you aim to generate wealth.
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To invest sensibly in the current times, you need a Multi-Asset Fund that invests in mainly three asset classes: equity, debt and gold; and is truly balanced.
Among the plethora of Multi-Asset Funds, the Quantum Multi Asset Fund of Funds (QMAFOF) incepted on July 11, 2012, is truly balanced and holds well-diversified portfolio (across the three key asset classes: equity, debt and gold) at all the times -- unlikely many of its peers who swayed by the excess exuberance in equities, lost sense, and eroded investors wealth.
Instruments | Indicative allocations (% of Total Assets) | Risk Profile | |
---|---|---|---|
Minimum | Maximum | High/Medium/Low | |
Units of Equity Schemes | 25% | 65% | Medium to High |
Units of Debt / Money Market Schemes | 25% | 65% | Low to Medium |
Units of Gold Scheme | 10% | 20% | Medium |
Money Market instruments, Short-term Corporate debt securities, CBLO, Repo / Reverse Repo in government securities and treasury bills only | 0% | 5% | Low |
The Scheme predominantly invests in the units of Equity, Debt / Money Markets and Gold schemes of Quantum Mutual Fund. Currently, the following schemes are used to gain exposure to a particular asset class:
For equity - Quantum Long Term Equity Value Fund, Quantum Nifty ETF
For debt & money market instruments - Quantum Liquid Fund, Quantum Dynamic Bond Fund
For Gold - Quantum Gold Fund (ETF)
The Units of any other Equity and Debt / Money Markets scheme launched by Quantum Mutual Fund from time to time would be eligible to be part of the above asset allocation components.
Although QMAFOF aims to invest predominantly only in the schemes launched by Quantum Mutual Fund, QMAFOF may seek to invest in the units of similar schemes of other mutual fund houses in case of any investment and regulatory constraints that arise that prevent the Scheme from increasing investments in the schemes of Quantum Mutual Fund.
The investment objective of Quantum Multi Asset Fund of Funds 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"
QMAFOF benchmarks it against the Crisil Composite Bond Fund Index (40%) + S&P BSE Sensex Total Return Index (40%) + Domestic price of Gold (20%).
Being a fund of fund, this benchmark is most suitable to compare QMAFOF's performance. The unique combination clubs together the relatively risky assets with other stable asset classes in the portfolio.
Backed by an astute investment strategy, taking the relative valuations between asset classes into consideration such as Price-to-Earnings relative to historical averages; the relationship between earning yield to bond yield relative to historical averages; and macroeconomic factors prevailing globally and within India, the two fund managers of QMAFOF, namely Mr Chirag Mehta (MMS - Finance, M.Com, and CAIA with over 13 years' experience in research and investments) and Mr Nilesh Shetty (B.Com, MMS -Finance, and CFA with collectively 16 years in equity markets), have generated respectable returns for investors.
Scheme Name | AuM (Cr) | Returns since Shri Narendra Modi first took oath as Prime Minister of India on May 26, 2014 | Returns since the all-time high of the S&P BSE Sensex (From Jan 20, 2020 to April 27, 2020) | |
---|---|---|---|---|
Absolute Returns | Annualized Returns | Absolute Returns | ||
SBI Multi Asset Allocation Fund | 220.63 | 65.50% | 8.90% | -4.60% |
ICICI Prudential Multi-Asset Fund | 9022.56 | 50.50% | 7.20% | -18.90% |
Quantum Multi Asset Fund of Funds | 16.23 | 49.70% | 7.10% | -4.40% |
Axis Triple Advantage Fund | 258.6 | 46.90% | 6.70% | -14.30% |
HDFC Multi-Asset Fund | 198.05 | 36.10% | 5.30% | -14.00% |
UTI Multi Asset Fund | 564.1 | 28.40% | 4.30% | -12.00% |
Even as the equity market is panting for breath attributable to COVID-19 and volatility has intensified, QMAFOF due to its sensible asset allocation to equity, debt and gold through its underlying portfolio, has fared relatively better than some of the peers.
ICICI Prudential Multi-Asset Fund, Axis Triple Advantage Fund, HDFC Multi-Asset Fund, and UTI Multi-Asset Fund, on the other hand, have all eroded investors wealth posting double-digit negative returns (see Table 2) in this downturn. Some of these schemes have fared well during upswings by keeping to the allocation to equities high, but on the downside, they have not managed the risk very sensibly. Investors, as a result, have experienced a roller-coaster ride in the journey of wealth creation.
A multi-asset fund, ideally, is expected to be truly balanced and sensibly allocate its assets whereby the downside risk of one asset class is compensated by the positive returns of the other asset classes.
Here are five good reasons to invest in Quantum Multi Asset Fund of Funds
QMAFOF is a perfect fund for investors looking to tactically diversify the portfolio with a single fund across equity, debt and gold, plus leave the aspect of rebalancing to the discretion and expertise of the fund manager.
Furthermore, the fund is appropriate for investors seeking long term capital appreciation, who have a moderately high-risk appetite, and an investment time horizon of 3 to 5 years.
It is the best time to invest in the Quantum Multi Asset Fund of Funds. Valuation-wise, Indian equities look attractive and there appears to be a decent margin of safety (with a high return potential if the equity markets ascend).
Similarly, given the uncertainty surrounding the world, gold is expected to display its lustre. The economic uncertainty surrounded by the COVID-19, GDP growth rates being revised downwards, easy monetary policy action and stance followed by central bank across the world, geopolitical tensions, trade tension, and increased stock market volatility are likely to keep spotlights on gold.
Likewise, with credit risk getting amplified, it makes sense to have exposure to a pure Liquid Fund (that does not take exposure to Commercial Papers issued by private entities). Now that policy rates are already lowered by RBI to address growth concerns, it does not make much sense to take exposure to the longer end of the yield curve; it could prove less rewarding and risky (may encounter high volatility) in the foreseeable future. Deploying your hard-earned money is short-end of the maturity curve, would be far better.
By investing in Quantum Multi Asset Fund of Funds, you will be able to balance the risk better with a sensible investment strategy in place.
Just as an excess drug dosage cannot treat COVID-19, your investment portfolio, too, needs just a fair amount of diversification to clock optimal risk-adjusted returns in the journey of wealth creation.
Go ahead and consider investing in Quantum Multi Asset Fund of Funds.
Happy Investing!
Author: Rounaq Neroy
This article first appeared on PersonalFN here.
PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.
Disclaimer:
The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.
The Indian equity markets are on a rollercoaster with the uncertainty surrounding the COVID-19 pandemic. It's been a nerve-racking experience for investors and wealth has been eroded.
As we continue to battle COVID-19 with lockdown 3.0, on a year-to-date basis the S&P BSE Sensex is down -23.9% as of May 5, 2020, (see Table 1 below).
Particulars | S&P BSE SENSEX | S&P BSE Mid-Cap | S&P BSE Small-Cap |
---|---|---|---|
All-time high (Dates) | 20-Jan-20 | 9-Jan-18 | 15-Jan-18 |
All-time high level (in points) | 42,273.87 | 18,321.37 | 20,183.45 |
Level as of Jan 1, 2020 (in points) | 41,306.02 | 14,998.63 | 13,786.69 |
Level as of May 5, 2020 (in points) | 31,453.51 | 11,391.21 | 10,649.61 |
YTD Return (%) | -23.90% | -24.10% | -22.80% |
Correction since the all-time high (%) | -25.60% | -37.80% | -47.20% |
Balanced Hybrid Funds that are supposed to be balanced and protect downside risk have gone on to erode investors' wealth by seldom maintaining a 'fair balance' and displaying unreasonable love and exuberance for equities plus for taxation reason -- to be treated as an equity-oriented fund. (see Table 2 below).
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FREE Guide for You: Find the
Next Crorepati Stock in this Futuristic Industry
Tanushree Banerjee, the co-head of research, just shared her latest guide:
Find the Next Crorepati Stock in this Futuristic Industry
And she has agreed to make it available for free for a limited time.
If you've not claimed your free copy, then do so now. It might not remain free for long. One more thing...
Tanushree has also discovered one stock from this futuristic industry... which she strongly believes has the potential to make one Rs 1 crore or more in the long run.
She'll reveal more details about this stock in her 'One Stock Crorepati MEGA Summit'
We expect this to a huge event... with more than 10,000 people attending it LIVE.
You simply can't miss it.
Click Here to Download the Guide & Block Your Seat Now. It's Free.
------------------------------
Similarly, many multi-asset funds that hold the mandate to invest with allocation across three asset classes i.e. equity, debt and gold with minimum 10% in each have posted negative returns (see Table 2 below).
Scheme Name | AuM (Cr) | 3 Mths | 6 Mths | 1-Yr | 2-Yr | 3-Yr | 5-Yr | P2P Returns: |
---|---|---|---|---|---|---|---|---|
Jan 1, 2020 To | ||||||||
April 30, 2020 | ||||||||
Balanced Hybrid Funds | ||||||||
SBI Equity Hybrid Fund | 26,924.55 | -16.80% | -13.20% | -7.90% | -0.50% | 4.50% | -12.10% | |
ICICI Prudential Equity & Debt Fund | 16,219.25 | -17.20% | -17.10% | -14.07 | -4.40% | 0.50% | 5.80% | -16.10% |
HCDF Hybrid Equity Fund - Direct Plan | 14,890.78 | -15.20% | -12.70% | -12.20% | -5.50% | -2.10% | 2.70% | -15.00% |
Aditya Birla Sun Life Equity Hybrid 95 | -19.20% | -19.00% | -17.20% | -9.00% | -3.10% | 3.20% | -17.20% | |
6,914.36 | ||||||||
L&T Hybrid Equity Fund | 5,405.22 | -16.20% | -14.90% | -11.90% | -6.40% | -0.90% | 4.90% | -12.80% |
Multi Asset Funds | ||||||||
ICICI Prudential Multi-Asset Fund | 9,022.56 | -14.50% | -14.80% | -12.10% | -4.10% | 1.00% | 5.20% | -13.90% |
UTI Multi Asset Fund | 564.1 | -11.80% | -10.40% | -6.80% | -3.20% | 0.30% | 2.90% | -7.10% |
SBI Multi Asset Allocation Fund | 220.63 | -3.60% | -3.20% | -6.20% | 4.20% | 5.60% | 7.60% | -1.70% |
HDFC Multi-Asset Fund | 198.05 | -10.30% | -6.40% | -4.00% | -0.60% | 2.20% | 5.10% | -8.60% |
Quantum Multi Asset Fund of Funds | 16.23 | -1.20% | -0.90% | -4.20% | 5.00% | 5.90% | 7.30% | -2.00% |
Benchmark: S&P BSE Sensex TRI | - | -22.00% | -21.10% | -17.50% | -3.50% | 3.00% | 4.30% | 22.90% |
ICICI Prudential Multi-Asset Fund, HDFC Multi-Asset Fund, and UTI Multi-Asset Fund, in particular, have not lived up to the expectation and the trust evinced by investors (going by their AUM size). Not just are their recent returns amidst the outbreak of COVID-19 crisis unappealing, but even the 3-year and 5-year compounded annulaised return is nothing to vie for. This is because they haven't been able to sensibly allocate to the three key asset classes: equity, debt and gold, and play the investment strategy astutely.
On the other hand, the Quantum Multi-Asset Fund of Funds (QMAFOF) has depicted true balance backed by its sensible investment strategy arrested the downside risk and relatively fared better vis-a-vis its peers over 3-year and 5-year time periods.
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Corona Crash Alert: 7 Stocks You Absolutely Don't Want to Miss
Our Co-Head of Research, Tanushree Banerjee, has identified 7 stocks that could do exceedingly well in the coming years riding on a rare economic event.
And with the corona crash, this opportunity has only become even more exciting.
And she says those who get into these 7 stocks right now have the chance to make potentially LIFE-CHANGING returns in the long run.
So will you be among those who acts on this opportunity now? Or will you be among those who will kick yourself later not taking action now? The choice is yours.
Full details on these 7 stocks are included in Tanushree's special report. And by acting fast, you can claim a copy of this report virtually FREE.
Click here to find out how you can claim your FREE copy
------------------------------
The Quantum Multi-Asset under normal circumstances by maintaining 25%-65% exposure to units of equity schemes (vide Quantum Long Term Equity Value Fund, Quantum Nifty ETF); 25%-65% exposure to units of debt and money market instruments (vide Quantum Liquid Fund, Quantum Dynamic Bond Fund); 10%-20% in units of gold schemes (vide Quantum Gold ETF); and up to 5% in money market instruments, Short-term Corporate Debt securities, Tri-Party Repo, Repo/ Reverse Repo in Government securities and Treasury Bills has been able to generate modest, yet appealing returns than the rest, and mitigated the risk by diversifying across asset classes: equity, debt and gold.
Historically it is proved that all classes never move in the same direction -- up or down -- at the same time. There could be times when certain asset classes perform better than the other and/or show an inverse relation to another (see Table 3).
If your multi-asset fund strategically allocates between equity, debt, and gold sensing the pulse of each asset class, maintains balance, and takes calculated risk sensible wealth creation is possible.
In the on-going COVID-19 crisis, equities will remain volatile, but given the sharp correction, there are and will be, enough long-term value-buying opportunities with a decent margin of safety.
Gold in such uncertain times would continue to gain all the attention. Easy monetary policy action and accommodative stance to address growth concerns, a record-high debt-to-GDP ratio, trade war tensions, geopolitical tensions, the potential risk to the inflation trajectory mainly due to food prices, increased stock market volatility, and the U.S. Presidential election in November 2020 are some of the factors expected to work in favour of gold. The precious yellow metal will demonstrate its trait of being a portfolio diversifier, a hedge (when other asset classes fail to post alluring returns), and command a store of value.
And speaking of debt & money market instruments, with exposure to highly rated papers and predominantly government securities, will act as a stabilizer.
A unique aspect of QMAFOF is that it has always taken relative valuations between asset classes into consideration, such as:
It is this wide-ranging and sensible approach that has helped QMAFOF to protect against the downside risk and reward its investors better than many of its peers. The fund managers, Mr Chirag Mehta (MMS - Finance, M.Com, and CAIA with over 13 years' experience in research and investments) and Mr Nilesh Shetty (B.Com, MMS -Finance, and CFA with collectively 16 years in equity markets), have strategically moved in and out of the aforesaid asset classes wisely recognising their upswings and downswings.
[Read: Why Tactically Invest Across Asset Classes amidst COVID-19 with Quantum Multi-Asset Fund Of Funds]
The choice is completely yours: to stay invested in a 'Balanced Hybrid Fund'/ Multi-Asset Fund that does not show true balance and keep harming your health and wealth; or make a sensible move and switch over to Quantum Multi Asset Fund of Funds that is truly balanced and has sensibly generated wealth for investors without the shrieking experience of a rollercoaster.
Wish to invest in Quantum Multi Asset Fund of Funds? Click here.
Happy Investing!
Author: Rounaq Neroy
This article first appeared on PersonalFN here.
PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.
Disclaimer:
The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.
VC fund Runa Capital was launched with $135 million in 2010, and is perhaps best known for its investment into NGINX, which powers many web sites today. In more recent years it has participated or led investments into startups such as Zipdrug ($10.8 million); Rollbar this year ($11 million); and Monedo (for €20 million). HQ’d […]
VC fund Runa Capital was launched with $135 million in 2010, and is perhaps best known for its investment into NGINX, which powers many web sites today. In more recent years it has participated or led investments into startups such as Zipdrug ($10.8 million); Rollbar this year ($11 million); and Monedo (for €20 million). HQ’d […]
The 42-year-old rapper-designer hired a fleet of drivers in Secret Sherps to hand out the Adidas-brand basketball shoes, which have not yet been released nationwide
Contestant, Kevin Quantum, leaves the judging panel made up of David Walliams, Simon Cowell, Amanda Holden and Alesha Dixon gobsmacked with his fiery stunt.
Britain's Got Talent Kevin Quantum suffered a dice with death during his audition on Saturday as he admitted that it didn't go entirely to plan.
Contestant, Kevin Quantum, leaves the judging panel made up of David Walliams, Simon Cowell, Amanda Holden and Alesha Dixon gobsmacked with his fiery stunt.