Quant Large Cap Fund NFO launched


Quant Mutual Fund is coming out with a NFO in the form of Quant Large Cap Fund.

Quant Large Cap Fund would be a large cap fund requiring minimum 80% allocation to large cap stocks at all times.

The fund would be open for subscription from July 20, 2022 to August 03, 2022.


Quant mutual fund

NFO details for Quant Large Cap Fund

Scheme Opens


Scheme Closes


Fund Manager

Mr. Sandeep Tandon

Mr. Ankit Pande

Mr. Vasav Sahgal

Mr. Sanjeev Sharma


Nifty 100 TRI

Minimum Investment


Fund Category

Large Cap

Exit Load



Quant Large Cap Fund would be an open – ended large cap fund requiring minimum 80% investment into large cap stocks at all times while the remaining 20% can be invested as per the will of the fund manager.


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Quant Large Cap Fund Investment Objectives

The investment objective of the fund is to generate long term capital appreciation by investing primarily in equity & equity related instruments of large cap stocks..

There is no guarantee that the investment objectives of the scheme would be achieved.



Quant Large Cap Fund Allocation

The asset allocation for the fund would be something like this

Asset Class

Minimum %

Maximum %

Equity and Equity Related instruments  of large cap companies



Equity and Equity Related instruments  of companies other than large cap



Debt and money market instruments



Units issues by REITS and InvITs




The above figures are only indicative and not fixed, the fund managers have the liberty to move across the asset classes depending upon prevailing market conditions as long as they remain within the mandate permitted.

The fund can also invest in REITs and InvITs if so desired.


A nfo means a new fund from a mutual fund house which was not available earlier.

With growing acceptance of mutual funds as a form of investment, mutual fund houses periodically introduce new fund offers so as to complete their basket of investments available for investors.

A NFO is usually what results in the beginning of a mutual fund scheme.

Other reasons being merger of schemes within the same fund house or merger or acquisition of two or more fund houses, these are rare instances though.


Additional reading: Click Here to read why should Not invest in equity mutual funds

NFO meaning

A nfo or a new fund offer is a method by which a mutual fund scheme raises the initial investment into the fund.

The new fund offer is available for purchase for a limited number of days only.

After which it becomes unavailable for fresh purchase or redemption for a couple of days.

Once this time duration is complete, the nfo no more remains a nfo and is treated like any other open ended mutual fund scheme.

In which you can invest and redeem as and when you please, considering it is an open ended fund and you comply with the necessary exit load calculations.

Additional reading: Click Here to read whether you are affected by the Dilderot Effect

What are Large cap mutual funds

A large cap mutual fund by SEBI regulations needs to invest a minimum 80% of its total aum in the top 100 companies by market capitalization.

Categorization of companies

Large Cap: 1st -100th company in terms of full market capitalization.


Mid Cap: 101st -250th company in terms of full market capitalization.


Small Cap: 251st company onwards in terms of full market capitalization.


This rule therefore does not allow a large cap mutual fund to diversify much beyond the top 100 companies.

Large cap mutual funds because of the rule to invest mostly in the top 100 companies by market capitalization end up with companies that are leaders in their respective fields.

At times flexi cap mutual funds when their aum becomes really large convert themselves into a large cap fund, although this is not a rule but more of a choice.

This is done because liquidity becomes a challenge with stocks besides large cap stocks.

Case in point Mirae Asset Large cap fund was primarily a flexi cap mutual fund that was converted to a large cap fund.


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What is quant model?

The Merriam-Webster dictionary defines Quant as

‘’An expert at analyzing and managing quantitative data’’


A Quant based Mutual Fund Scheme is one that is far more driven by number, statistics and data than a macro- economic approach.

Now what constitutes these numbers varies from Fund House and at times, even schemes. For some it might be the quarterly results to the PE ratio.

This approach for example would be more reactive to the effect of a change in RBI Governor has on the market prices rather than predicting what effect it would have in the future.

Meaning the mere change in RBI Governor has absolutely no bearing on its functioning but if the change has an effect on the stocks it holds and wishes to sell or buy then it would react accordingly.

The stock selection process is quantitative driven and human intervention is limited, it picks up stocks based on their number irrespective of other factors.

Robert Merton is considered one of the founding fathers of quantitative study and this was way before the advent of modern computers. With modern changes, it was imbibed with technology and is today used by financial institutions around the world including Fund Managers.

The fundamental approach of this practice is to break down complex mathematical data to look for alpha or excess return. There has to be something more than what a Fund Manager can provide and that is where its value comes into the picture.




Should you invest in a nfo?

You can consider it if:

The new fund offer is a category of fund that is not existent in your mutual fund portfolio.

If it is going to be a part of your satellite portfolio.

If it adds a unique touch to your mutual fund portfolio.

If you understand the functioning, objectives and risks attached with the new fund offer.

The nfo mutual fund is aligned with your risk profile.


You should avoid it if:

The new fund offer is not going to add anything of unique significance to your mutual fund portfolio.

If the nfo is going to be a part of your core portfolio.

If the only reason you are investing is due to FOMO (Fear of missing out).

If you do not understand the investment style and risks attached with the nfo.

The nfo mutual fund is not aligned with your risk profile.



For portfolio enquiriesemail us with your doubts at info@themutualfundguide.com

Disclaimer : While due precaution has been undertaken in the preparation of this article, The Mutual Fund Guide or any of its authors will not be held liable for any investments based on the above article. The above article should not be considered financial advice and has been published only for your perusal. Due credit has been given in case wherever required, in case you feel any part violates any rights then do get in touch with us and we shall get it duly removed.  
Mutual Fund investments are subject to market risks. Please read the offer document carefully before investing

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