Quantum AMC launches Quantum Small Cap Fund, NFO opens on Oct 16

Mumbai: Quantum AMC announced the launch of a new fund offer (NFO) with Quantum Small Cap Fund- A Small Cap fund with a Big Difference. It opens for subscription on Monday, October 16 and closes on Friday, October 27, 2023. It is an open-ended equity scheme predominantly investing in Small Cap Stocks. It will be co-managed by experienced fund managers – Chirag Mehta and Abhilasha Satale.

The scheme will be benchmarked against S&P BSE 250 Small Cap total return index (TRI). Its investment objective is to generate long-term capital appreciation by investing in Small Cap Stocks.

The scheme will have direct and regular plans. The Fund managers will allocate 65-100% in equity and equity-related instruments of Small Cap Companies.

Chirag Mehta, Chief Investment Officer & Fund Manager, Quantum AMC, said, “Our Small Cap Fund is meant for investors who are looking for long-term capital appreciation. We have seen that in the long term, Small Cap stocks have demonstrated the capability of giving good returns potential. To ensure good returns for our customers, we will make investments in lesser-known, smaller businesses with growth prospects. Over a period of time, these companies increase their revenue and earnings, which can ensure good returns for our customers.”

With a proven track record since 2006 which demonstrates judicious portfolio management and adaptability to market conditions, Quantum Mutual Fund is well-positioned to enhance its customers portfolio with Quantum Small Cap Fund. This scheme aims to provide exposure to companies through a meticulously curated and diversified portfolio.

Quantum AMC remains true to label by maintaining discipline to ensure that excessive fund size does not hinder performance. This commitment is reflected in Quantum’s rigorous selection process. The company focuses on liquidity, with each stock in the portfolio averaging a daily trading volume of a minimum of Rs. 2 crores, ensuring ease of buying and selling.

This Small Cap Fund is poised to make a difference through a high-conviction portfolio of 25 to 60 stocks. The company aims to achieve optimal diversification while avoiding the pitfalls of merely mirroring the Small Cap Index.

Quantum AMC’s portfolio construction process is agile and responsive, as evidenced by its track record since 2006. The team at Quantum practices limited ownership in individual stocks, generally with holdings capped at 5% of their market capitalization. This approach minimizes concentration risk and fosters a balanced portfolio.

Furthermore, Quantum AMC maintains a sizeable stock exposure by ensuring a minimum weight of 2% at cost in each stock. This commitment to meaningful exposure helps in achieving investment objectives. These principles underscore Quantum AMC’s commitment to delivering value to investors by offering a well-managed and diversified small-cap portfolio that aligns with their long-term financial goals.

Fund managers will invest in a basket of small-cap stocks after using intensive fundamental analysis, both quantitative and qualitative. The Fund managers will monitor the portfolio actively and will avoid excessive trading. They will control the risk by keeping the portfolio adequately diversified.

For this NFO, fund managers will be disciplined about fund capacity wherein they will be mindful of large size from becoming a hindrance to performance. They will prioritize liquidity and will have a high-conviction portfolio wherein 25-60 stocks will be chosen for optimal diversification.