Quantum Mutual Fund has launched Quantum Nifty 50 ETF Fund of Fund – an open-ended fund of fund scheme investing in units of Quantum Nifty 50 ETF. The New Fund Offer opens for subscription on July 18, 2022 and closes on August 1, 2022.
According to the fund house, Quantum Nifty 50 ETF FOF is India’s first-of-its-kind Nifty 50 ETF Fund of Fund. This fund combines the efficiency of an ETF with the convenience of an index fund, giving investors the best of both world’s.
Quantum Nifty 50 ETF FOF is one of the most convenient ways to invest in India’s Nifty Top 50 without opening a DEMAT account. This fund will invest in the units of Quantum Nifty 50 ETF, a passive scheme in the array of Quantum Solutions with a track record of 14 years and counting.
Investors’ perceptions about investments have been changing, especially among young retail investors. These investors prefer greater control over their investments, and they want to be able to build their own portfolio and ‘be their own fund manager’. They adopt a “core and satellite” portfolio strategy and are interested in taking exposure to equities – preferably a portfolio comprising of large-cap companies to build the core of their portfolio and augment them with sector specific / thematic funds to form their satellite portfolio.
At the same time, these investors also want the convenience and flexibility of SIP (Systematic Investment Plan) investments. These investors have been increasingly preferring index funds. Quantum believes that despite changing market preferences, asset allocation is fundamental to any long-term successful investing.
“As an ‘investor first’ fund house, we want to provide investors with building blocks, active and passive, to be able to build their asset allocation framework,” said Chirag Mehta, CIO, Quantum Mutual Fund.
He further added, “Investors can build their investment portfolio by adopting a passive approach in Quantum’s DIY 12-20-80 Asset Allocation Strategy. This strategy has the potential to minimize downside risks and achieve your long-term goals. As per this strategy, investors dedicate money worth 12 months of their expenses in a liquid fund and 20% of your investable money to gold, the rest 80% can be allocated to equity. Investors can allocate 85% of their equity investments to Quantum Nifty 50 ETF Fund of Fund, while the rest 15% can be allocated to Quantum India ESG Equity Fund.”
Hitendra Parekh – Fund Manager for the scheme who has been managing Quantum Nifty 50 ETF since its inception from July 10th, 2008 – said, “With this new fund offering, Quantum Mutual Fund continues to dive deeper into the passive space, offering investors ease of investment and diversification in a single product. This hassle-free option can help one to plan for long-term goals.”
The scheme will re-open for subscription and redemption on ongoing basis from August 10, 2022. 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, however, no assurance or guarantee that the investment objective of the Scheme will be achieved.
Salient features of Quantum Nifty 50 ETF Fund of Fund
- India’s First Nifty 50 ETF Fund of Fund
- No Demat account required
- SIP option available
- One-Stop-Shop for 12:20:80 Passive Asset Allocation
New Fund Offer Price – during the NFO period – At Face Value of Rs. 10/ – per unit
Minimum Application Amount (For All Option / Plan)- Rs. 500/- and multiples of Rs. 1/- thereafter.
Minimum Additional Investment Amount (For All Option / Plan) Rs. 500/- and multiples of Rs. 1 /- thereafter/ 50 units
Plans and Options Available
Regular Plan and Direct Plan – Both Plan offers Growth Option
Entry Load: Not Applicable
Exit Load: NIL
Benchmark Index: NIFTY 50- Total Return Index