Mutual Fund News : Quantum Mutual Fund has launched a new scheme – Quantum Nifty 50 ETF Fund of Fund

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Quantum Mutual Fund has introduced a new fund offer – Quantum Nifty 50 ETF Fund of Fund

It is an open-ended Fund of Fund Scheme investing in units of Quantum Nifty 50 ETF.

The investment objective of the Scheme is to provide capital appreciation by investing in units of Quantum Nifty 50 ETF - Replicating / Tracking Nifty 50 Index. There is no assurance or guarantee that the investment objective of the Scheme will be achieved.

Under normal circumstances, Quantum Nifty 50 ETF Fund of Fund will hold an allocation of 95% to 100% of its assets in Units of Quantum Nifty 50 ETF, and 0% to 5% of its assets in Government Securities & Treasury Bill Maturity upto 91 days, Tri Party Repo and Liquid Schemes of Mutual Funds.

Quantum Nifty 50 ETF Fund of Fund scheme would invest in the units of Quantum Nifty 50 ETF. The AMC does not make any judgments about the investment merit of a Quantum Nifty 50 ETF nor will it attempt to apply any economic, financial or market analysis. Passive approach eliminates active management risks in regard to over / underperformance vis-à-vis the benchmark.

About Quantum Nifty 50 ETF (the Underlying fund):

Quantum Nifty 50 ETF (Q Nifty) is an open-ended scheme, listed on the National Stock Exchange of India Limited in the form of an Exchange Traded Fund (ETF). This underlying scheme tracks and replicates the performance of the Nifty 50 Index. Quantum Nifty 50 ETF can be bought and sold like an equity share of the stock exchange. A unit of Q Nifty represent approximately equal to the price of 1/10 (one-tenth) of the Nifty 50 Index.

The investment strategy of the new scheme is to buy / sell units from the underlying scheme i.e. Quantum Nifty 50 ETF in creation of unit size or through the secondary market through stock exchange route to achieve the investment objectives. The Scheme would endeavour to stay invested in the underlying scheme practically to the maximum extent possible at all times. However, the Scheme would also maintain some funds for meeting expenses and redemption purposes, in order to meet the liquidity requirements of the Scheme as prescribed in the Asset Allocation.

Quantum Nifty 50 ETF Fund of Fund’s performance will be benchmarked against NIFTY 50- Total Return Index.

The fund will be managed by Mr Hitendra Parekh.

The NFO opens for subscription on July 18, 2022 and closes on August 01, 2022. The scheme will reopen for continuous sale and repurchase on August 10, 2022.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 500 and in multiples of Re 1 thereafter.

The scheme offers Regular Plan and Direct Plan each plan offers Growth option.