Mutual Fund News : Quant Mutual Fund Introduces Quant Value Fund

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Quant Mutual Fund (MF) has launched an open-ended equity scheme - Quant Value Fund.

The scheme endeavors to follow a value investment strategy and will invest in a well-diversified portfolio of value stocks.

Accordingly, the investment objective of the scheme is to seek to achieve capital appreciation in the long-term by primarily investing in a well-diversified portfolio of value stocks. The AMC will have the discretion to completely or partially invest in any of the type of securities stated above with a view to maximize the returns or on defensive considerations. However, there can be no assurance that the investment objective of the Scheme will be realized, as actual market movements may be at variance with anticipated trends.

Under normal circumstances, 65% to 100% of the fund’s portfolio will be invested in equity & equity related instruments. The scheme may also invest upto 35% of its assets in Debt & Money Market Instruments, and may seek to invest upto 10% of its net assets in Units issued by REITs and InvITs.

The investment strategy of Quant Value Fund as mentioned in the Scheme Information Document (SID) is as follows:

Quant Value Fund aims to provide long term capital growth by investing primarily in a well-diversified portfolio of companies that are selected based on the criteria of Relative value investing. Relative value investing is an investment strategy where stocks are selected that trade for less than their perceived intrinsic values. It may also include stocks likely to benefit out of turnaround of business and value unlocking opportunities such as mergers, demergers, acquisition, etc.

The Scheme proposes to accumulate a portfolio of well-diversified stocks, which are available at a discount relative to their perceived intrinsic value through a process of ‘Discovery’ by using our VLRT investment framework. The Discovery process would be through identification of stocks, which have attractive valuations in relation to Valuation Analytics, Liquidity Analytics & Risk Appetite Analytics. This may constitute stocks, which have depreciated for a short period due to some exceptional circumstance or due to market correction phase or due to lack of interest in investing in a sector (which has significantly under-performed the market). This may also include stocks likely to benefit from turnaround of business and relative value unlocking opportunities such as mergers, demergers, acquisition, any corporate action etc.

The Scheme will invest in line with the investment manager’s views on the macro economy with a particular focus on the sentiments of the market participants through the interpretation of quant Money Mangers’ Predictive Analytical tools and macro indicators. The fund managers will follow a dynamic investment strategy taking defensive/aggressive postures depending on the overall risk-on / risk-off environment. The portfolio shall be reviewed consistently on the basis of the macro-economic environment and changes will be made based on the data generated by our analytics and on the discretion of the fund manager.

All investment decisions are based on quant money managers’ investment framework – VLRT. In the face of this uncertainty and complexity, we have found consistent success by studying markets along four dimensions as opposed to limiting ourselves to any one school of thought:

Valuation Analytics, Liquidity Analytics, Risk Appetite Analytics, and Timing.

- Valuation Analytics: Knowing the difference between price and value.

- Liquidity Analytics: Understanding the flow of money across asset classes.

- Risk Appetite Analytics: Perceiving what drives market participants to certain actions and reactions.

- Timing: Being aware of the cycles that govern how the other three dimensions interact.

Quant Value Fund’s performance will be benchmarked against Nifty 500 Value 50 TRI (Total Return Index).

Quant Value Fund will be managed by Mr Sandeep Tandon, Mr Anikt Pande, Mr Sanjeev Sharma and Mr Vasav Sahgal.

The NFO opens for subscription on November 10, 2021 and closes on November 24, 2021. The scheme will reopen for continuous sale and repurchase within five Business Days from the date of allotment.

The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum Capital Withdrawal Option (Re-investment and Pay-out facility).