Quant Mutual Fund is
coming out with a NFO in the form of Quant Business Cycle Fund.
Quant Business Cycle
Fund would be an open ended fund with no restriction to any caps or sectors and looking for opportunities in businesses and sectors going through a cyclical change.
The fund would be open
for subscription from May 12, 2023 to May 25, 2023.
NFO
details for Quant
Business Cycle
Fund
|
Scheme Opens |
12/05/2023 |
|
Scheme Closes |
25/05/2023 |
|
Fund Manager |
Mr. Ankit Pande Mr. Sandeep Tandon Mr. Sanjeev Sharma Mr. Vasav Sahgal |
|
Benchmark |
NSE 500 TRI |
|
Minimum Investment |
5,000 |
|
Fund Category |
Thematic |
|
Exit Load |
Nil |
Quant Business Cycle
Fund would be an open – ended equity fund with freedom to invest across all
sectors and caps, attempting to take advantage of the cyclicality of them to
gain superior returns.
Quant
Business Cycle Fund Investment Objectives
The investment
objective of the fund is to generate long term growth by investing in
opportunities across various business cycles across market caps.
There is no guarantee
that the investment objectives of the scheme would be achieved.
Additional reading: Click Here to read about the various Types of Mutual Funds
Quant
Business Cycle Fund Allocation
The asset allocation
for the fund would be something like this
|
Asset Class |
Minimum% |
Maximum% |
|
Equity and Equity Related instruments including ETFs selected on the
basis of business cycle |
80 |
100 |
|
Debt and money market instruments including debt ETFs & Gold and
Silver ETFs |
0 |
20 |
|
Units issues by REITS and InvITs |
0 |
10 |
|
Foreign securities including ADRs/GDRs/Foreign equity & debt
securities |
0 |
20 |
|
Other equity & equity related instruments including equity ETFs |
0 |
20 |
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.
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 more about what are Dividend yield mutual funds
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 enquiries, email us with your doubts at info@themutualfundguide.com
