Saturday, 5 November 2011

Quantum Equity Fund of Funds, a good Mutual Fund

Quantum Equity Fund of Funds is an equity based Fund of Funds (FoFs) from Quantum Mutual Fund. The Quantum FoFs offers an attractive investment option. The fund invests in diversified equity mutual funds of other fund houses.  This is a good investment option to get benefits of a few good equity based mutual funds from other mutual fund houses. The Fund launched on 26th June, 2009 and the NFO was closed on 13th July, 2009, reopened for continuous subscription on 22nd July, 2009.


Investment Objective of Quantum Equity FoFs: The investment objective of the scheme is to generate long-term capital appreciation The scheme will invest in a portfolio of open-ended diversified equity schemes of mutual funds registered with SEBI. The Fund of Funds is an open ended fund.

Investment Strategy: The fund aims to invest only in diversified equity mutual fund schemes of third party fund houses and wish to get benefit from a long term investment. The fund will not invest any sector funds, index funds, ELSS or balanced funds. The Fund of Funds will not invest in any other funds of the Quantum Mutual fund. The fund will invest only in mutual funds with a track record is more than 3 years.

Options of the Fund of Funds: The Quantum Equity Fund of Funds is available in growth option and dividend option and the dividend option is also classified into dividend payout option and dividend reinvestment option.

Minimum and Maximum investment: The minimum investment in the Fund of Funds is Rs. 5000 and the multiples of Re. 1 thereafter. The additional investment is Rs. 1000 and the multiples of Re. 1 thereafter. The minimum investment in the form of Systematic Investment Plan (SIP) is Rs. 1000 for a minimum 6 installments.

Entry load and Exit load: There is no entry load for Quantum Equity Fund of Funds. But if you redeem the fund before one year of the investment, 1.5% will be the exit load. 

Asset Allocation: The Fund of Fund invests 90 – 100% of the amount in Various Equity Schemes and 0-10% of amount in Money Market Instruments.

Expense ratio of the mutual fund: The Fund house claimed that the expense ratio is only 0.75% per annum, which is very low when compared to some other mutual funds. 

How to invest in Quantum Equity Fund of Funds:


You can invest in Quantum equity fund of funds online without any paperwork through the website of Quantum mutual fund.  You can invest offline also by filling the application forms which can be downloaded from the website of Quantum mutual fund and submit to any collection centers with crossed cheque or demand draft. You can invest in Quantum mutual funds through branches of selected banks. The list of banks is available in the website of Quantum mutual fund. 
Conclusion: Quantum Equity Fund of Funds is an equity oriented fund of funds and an investor should not run after many equity mutual funds. The fund gives the benefits of other equity funds by investing in other selected good performing equity funds of other fund houses

Note: Please read the Scheme Information Document and Statement of Additional Information carefully before investing.

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1 comment :

  1. Dear Sir,

    The article will be more useful if performance of the fund vis a vis other similar fund and benchmark indices are given ..

    Regards
    Rupesh Shah

    ReplyDelete