Quant Active Fund. Detailed Review. Three year CAGR return 35%. Have you invested?

CRISIL Rank - *****

NAV 427.47(as of 27th Aug)

Quant Mutual Fund is one of the best fund house in the Mutual fund industry, Since it's inception in 2018. Quant mutual fund does not follow any specific strategy in it's investment decisions. It's a young company having a great vision. Though it's a small sized mutual fund house with AUM  nearly rupees 5000 cr. It's AUM size rose exponentially after pandemic. Before pandemic it's AUM was just 130 crore now it has reached rupees 5000 cr, a huge jump in it's size in the last  2 and half years. Top performing funds of  Quant Mutual Fund are Quant Infrastructure Fund, Quant Mid Cap fund, Quant Flexi Cap fund and Quant Active Fund.

In this article we will know details about the Quant Active Fund. This is a Multicap fund, According to SEBI guidelines the fund will invest minimum 25% in each market cap stocks. Remaining 25% will be invested in any of the market cap stocks, it lies in the hands of fund manager. As we know that each market cap stock has it's unique features. Large cap stocks provide stability to the portfolio, they are matured companies having a stable income and are leaders in their respective sectors. They are less volatile as compared to mid and smallcap stocks. Top 100 companies of Nifty in terms of market capitalisation are called large cap stocks, 101st to 250th companies are called midcap stocks and 251st to 500th are called small cap stocks.

The unique features of the investment framework of Quant Mutual Fund is VLRT model. V stands for valuation, whether the stock is under valued or over valued. L stands for liquidity, R for risk, T stands for time.

Quant Active fund is one of the best Multicap fund in this category, which has generated 19.13% return since it's  inception in 2001. Here I am talking of  the regular plans.

Fund Objective 

The primary investment objective of the scheme is capital appreciation in long term. As it invests in all market cap stocks with minimum allocation to each market cap stocks is 25%, remaining 25% allocation is decided by the fund manger. There Is no assurance that the investment objective of they scheme will be achieved.

Current Allocation :- The fund has 98.75% allocation in domestic equity of which 44.96% is in large cap stocks, 13.4% is in Mid cap stocks, and 21.46% in small cap stocks.

Basic Details

Launch Date - 21st March 2001

Return since inception - 19.13%

Benchmark - Nifty 500 Multicap 50:25:25  TRI

Scheme Type - Open ended equity scheme

AUM - Rs 2312 Cr.(as on 30th June, 2022)

Expense Ratio - 2.63%

Minimum Investment - Rs 5000/-

Minimum SIP - Rs 1000/- per month

Lock in - Not applicable

Exit Load - Nil

No of stocks -59

Risk-o-meter - Very High

Top Holdings

ITC - 8.27%, SBI - 5.86%, Vedanta - 4.18% Patanjali Foods 3.82% and L&T 3.53%

Risk Ratios

Standard Deviation - 19.43 V/S 16.79 category average , which is highly volatile

Beta - 0.82 v/s 0.82 category average, hence low volatile.

Sharpe Ratio - 1.08 v/s 0.6 category average( better risk adjusted return)

Fund Manager - Mr. Ankit Pande( CFA& MBA)

Absolute Return(as of Aug 01, 2022)

Time     10,000 invested.   Absolute Return

1 Year.    10,806                       8.07%

2Yr.          20,279                      102.80%

3yr.           24,470                     144.70%

5Yr.          26,214                      162.14

10Yr.        66,888.                     568.88

SIP Return(monthly SIP of 10,000)(as of Aug 01, 2022)

Time        Invested Amount.   Current Value

2 Year.     2,40,000                     3,11,780

3 Yr.         3,60,000.                    6,01,250

5 Yr.         6,00,000.                    11,68,230

10 Yr.       12,00,000.                  37,91,430

Trailing Return.  1Yr    3Yr   5Yr    7Yr    10Yr

Quant Active.       6.50  34.6  21.3 18.09 20.9

Fund

S&P 500 TRI.      9.42 20.17 12.64 12.63 15.1

All are in percentage terms.

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Disclaimer - Mutual Fund investment are subject to market risks, read all scheme related documents carefully.