In the bustling world of investments, where every decision holds the promise of prosperity or peril, the search for value remains paramount. In this quest for wealth creation, one class of mutual funds stands out: Equity – Value Funds. These funds adhere to a time-tested investment philosophy, seeking out undervalued stocks with the potential for long-term growth. Among these, the Quant Value Fund – Regular Plan – Growth, managed by Quant Money Managers Limited, has emerged as a beacon of success, delivering an impressive one-year return of 75.1%. Let’s delve deeper into the story behind this remarkable performance and understand what sets this fund apart.
A Glimpse into Quant Value Fund
As a Value Fund, the Quant Value Fund follows an open-ended equity scheme, focusing on a value investment strategy. This strategy entails investing at least 65% of total assets in equity and equity-related instruments, with the aim of capital appreciation over the long term. Managed by Quant Money Managers Limited, the fund commenced its journey on 30th November 2021, and within a short span, has garnered significant attention and assets under management (AUM) amounting to Rs. 1,282.89 Cr. as of March 2024.
Navigating the Landscape: Investment Objective and Strategy
At the heart of Quant Value Fund lies a simple yet powerful investment objective: to achieve capital appreciation over the long term by primarily investing in a well-diversified portfolio of value stocks. The fund manager exercises discretion in selecting securities, aiming to maximize returns while considering defensive measures. However, it’s essential to note that market movements may deviate from anticipated trends, necessitating a flexible approach to investment management.
Key Metrics: Understanding the Fund’s Performance
Quant Value Fund’s performance can be evaluated through various metrics that provide insights into its market positioning and investment strategy. With a market capitalization of 30,273.19, the fund demonstrates its ability to navigate across companies of different sizes. The Price-Earning (PE) Ratio of 35.90 and Price-to-Book (PB) Ratio of 3.33 reflect the valuation metrics employed by the fund, indicating its preference for undervalued stocks. Moreover, a Dividend Yield of 139.75 underscores the potential for income generation, while a Portfolio Turnover Ratio of 3.17 times signifies the fund’s active management approach.
Risk and Reward: Assessing the Fund’s Profile
Investing in Quant Value Fund entails a degree of risk, as reflected in its Very High risk rating. While the fund offers the potential for significant returns, investors must be prepared for volatility and market fluctuations. It’s crucial to align investment decisions with individual risk tolerance and financial goals, ensuring a balanced approach to portfolio management.
Benchmarking Success: Navigating Against the NIFTY 500- TRI
Quant Value Fund’s performance is benchmarked against the NIFTY 500 Total Return Index (TRI), providing a yardstick for evaluating its relative performance. By outperforming the benchmark, the fund showcases its ability to generate alpha and deliver superior returns to investors. This benchmarking also highlights the fund manager’s skill in identifying value opportunities across a diverse universe of stocks.
Investment Options: Accessibility and Affordability
Investing in Quant Value Fund is accessible to a wide range of investors, with a minimum investment of Rs. 5,000 for lump sum investments and Rs. 1,000 for Systematic Investment Plans (SIPs). This low entry barrier ensures that investors can participate in the fund’s growth story with ease, irrespective of their investment size or financial capabilities.
Cost Considerations: Expense Ratio and Exit Load
While evaluating mutual funds, cost considerations play a crucial role in determining overall returns. Quant Value Fund maintains a competitive expense ratio of 2.10%, ensuring that a significant portion of returns accrues to investors. Additionally, an exit load of 1% is applicable, aligning investor interests with the fund’s long-term investment horizon.
Stewardship and Custodianship: Partnering for Success
As custodian of the fund’s assets, HDFC Bank Limited plays a pivotal role in safeguarding investor interests and ensuring compliance with regulatory requirements. This partnership underscores the importance of strong governance and risk management practices in maintaining investor trust and confidence.
Unleashing the Potential
In a world where market dynamics are ever-evolving, Quant Value Fund stands out as a testament to the power of value investing. With a proven track record of success and a robust investment strategy, the fund offers investors the opportunity to participate in the wealth creation journey. As markets continue to fluctuate, the fundamentals of value investing remain steadfast, guiding investors towards sustainable long-term growth and prosperity. Aspire, invest, and reap the rewards with Quant Value Fund – where value meets opportunity.
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