The Quant Value Fund – Regular Plan – Growth is an equity mutual fund scheme offered by Quant Money Managers Limited. Since its inception on November 30, 2021, this fund has aimed to provide long-term capital appreciation by investing primarily in value stocks. Value stocks are typically shares of companies that are considered undervalued compared to their peers, offering potential for growth over time.
Key Details of the Quant Value Fund – Regular Plan – Growth
- Fund Type: Open-ended equity scheme
- Fund Category: Value Fund
- Asset Management Company (AMC): Quant Money Managers Limited
- Benchmark: NIFTY 500 – TRI (Total Return Index)
Fund Objective
The primary objective of the Quant Value Fund is to achieve capital appreciation in the long term by investing in a diversified portfolio of value stocks. The fund management team has the discretion to invest in a wide range of securities, with a focus on maximizing returns while also considering defensive strategies to protect investors’ capital. However, it is important to note that there is no guarantee that the investment objective will be realized, as market conditions can vary.
Performance and Risk
- Risk Rating: Very High
The fund is rated as having a very high-risk level, which means it is suitable for investors who have a high risk tolerance and are looking for potentially higher returns over a longer period. - Performance Overview:
- 1 Day: ▼ 0.5%
- 1 Week: ▼ 0.2%
- 1 Month: ▼ 1.0%
- 3 Months: ▲ 7.8%
- 6 Months: ▲ 18.4%
- 1 Year: ▲ 70.6% (Annualized)
- 2 Years: ▲ 44.3% (Annualized)
The fund has delivered strong performance over the past year, with an impressive return of 70.6% over one year and 44.3% annualized over two years. Despite short-term fluctuations, the fund has shown positive growth over longer periods, which reflects its focus on value investing.
Fund Size and Investment Requirements
- Assets Under Management (AUM) (as of July 2024): ₹2,086.60 crore
- The size of the fund indicates a considerable level of investor interest and confidence.
- Minimum Investment:
- Lumpsum: ₹5,000
- Systematic Investment Plan (SIP): ₹1,000
These minimum investment amounts make the fund accessible to a wide range of investors, including those who prefer to start small and build their portfolio over time through SIP.
Expense Ratio and Exit Load
- Expense Ratio (as of July 31, 2024): 1.98%
The expense ratio represents the annual cost of managing the fund, which includes administrative fees, management fees, and other operational expenses. An expense ratio of 1.98% is within the range typically seen in actively managed equity funds. - Exit Load: 1%
An exit load of 1% is charged if units are redeemed within a specific period after purchase, which encourages investors to stay invested for a longer term to avoid this fee.
Key Financial Metrics
- Market Capitalization: ₹50,209.23 crore
This value represents the total market value of the companies in which the fund has invested. - Price-to-Earnings (PE) Ratio: 50.00
The PE ratio indicates the valuation of the portfolio. A PE ratio of 50 suggests that the fund’s investments are trading at 50 times their earnings, reflecting a growth-oriented approach. - Price-to-Book (PB) Ratio: 4.91
The PB ratio compares the market value of the portfolio to its book value. A PB ratio of 4.91 shows that the stocks in the fund are valued at almost five times their book value. - Dividend Yield: 0.81%
The dividend yield represents the income generated by the portfolio in the form of dividends as a percentage of the fund’s value. A yield of 0.81% suggests a focus on growth rather than income from dividends. - Portfolio Turnover Ratio: 4.14 times
This ratio indicates how frequently the fund manager buys and sells securities within the fund. A high turnover ratio, like 4.14 times, shows an active management style aimed at taking advantage of short-term opportunities.
Investment Strategy
The Quant Value Fund – Regular Plan – Growth primarily invests in value stocks, which are shares of companies believed to be undervalued relative to their intrinsic value or their industry peers. The fund manager focuses on companies with strong fundamentals, such as good cash flows, low debt levels, and robust business models, while also considering factors like market trends, economic indicators, and sector performance.
The fund may choose to invest entirely or partially in different types of securities depending on market conditions, aiming to maximize returns or adopt defensive positions when necessary.
Related Schemes
The fund offers several related schemes for investors who prefer different investment approaches:
- Quant Value Fund (G) – Direct Plan: 22.85% annualized returns, ▲ 73.0%
- Quant Value Fund (IDCW) – Direct Plan: 21.71% annualized returns, ▲ 72.8%
- Quant Value Fund – Reg (IDCW): 21.93% annualized returns, ▲ 71.9%
- Quant Value Fund – Reg (G): 21.81% annualized returns, ▲ 70.6%
These related schemes provide alternative options, including growth and income distribution choices, catering to different investor preferences.
Why Consider the Quant Value Fund – Regular Plan – Growth?
- Strong Performance: The fund has demonstrated strong performance over the past two years, significantly outperforming its benchmark, the NIFTY 500 TRI, in both short- and long-term periods.
- Diversified Portfolio: It invests in a well-diversified portfolio of value stocks, reducing the risk associated with individual stock performance.
- Active Management: The fund is actively managed, with a high portfolio turnover ratio, reflecting the fund manager’s proactive approach to capturing market opportunities.
- Long-Term Focus: Designed for investors seeking capital appreciation over the long term, the fund is suitable for those willing to accept higher risk in exchange for potentially higher returns.
- Accessibility: With a minimum investment requirement of just ₹5,000 for lumpsum and ₹1,000 for SIP, the fund is accessible to a wide range of investors.
Risks to Consider
While the Quant Value Fund – Regular Plan – Growth offers many potential benefits, it is important to be aware of the associated risks:
- High-Risk Rating: The fund is rated as having a very high risk, indicating potential for significant price volatility. It may not be suitable for conservative investors or those with a low-risk appetite.
- Market Volatility: As an equity-focused fund, it is subject to market risks, including changes in economic conditions, interest rates, and company-specific factors.
- Potential for Dividend Cuts: Companies within the fund’s portfolio may reduce or cut dividends during challenging market conditions, impacting income for investors who rely on dividend payouts.
Conclusion
The Quant Value Fund – Regular Plan – Growth offers an attractive option for investors looking to achieve long-term capital appreciation through a diversified portfolio of value stocks. With its strong performance history, active management strategy, and focus on growth, this fund may be well-suited for investors with a high-risk tolerance and a long-term investment horizon. However, it is essential to consider the associated risks and ensure it aligns with your financial goals and risk appetite before investing.
