Usually, Multi Cap funds are best avoided as they have investment restrictions.
But @quantmutual Active Fund is an outlier.
It's the top-performing Multi Cap scheme across 3, 5, 7 & 10 years.
And the margin of outperformance is phenomenal.
A 🧵on its performance and strategy.
But @quantmutual Active Fund is an outlier.
It's the top-performing Multi Cap scheme across 3, 5, 7 & 10 years.
And the margin of outperformance is phenomenal.
A 🧵on its performance and strategy.
Quant Active Fund was earlier called Quant Growth Plan.
In its previous avatar, it was a diversified equity scheme with #NIFTY50 as the benchmark.
In 2018, the scheme was renamed and converted into a Multi Cap fund.
In its previous avatar, it was a diversified equity scheme with #NIFTY50 as the benchmark.
In 2018, the scheme was renamed and converted into a Multi Cap fund.
Quant Active Fund’s turnaround started after Covid-19.
In fact, during this time, multiple schemes of Quant Fund started delivering stunning returns.
Check the image below to see how Quant Active Fund has outperformed its peers in 2020, 2021 and 2022 👇
In fact, during this time, multiple schemes of Quant Fund started delivering stunning returns.
Check the image below to see how Quant Active Fund has outperformed its peers in 2020, 2021 and 2022 👇
Thanks to the fund’s recent performance, investors are flocking to it.
Its AUM has risen nearly 𝟑𝟒𝟎 𝐭𝐢𝐦𝐞𝐬 in the past three years – from Rs 10.5 crore in Jan 2020 to Rs 3,555 crore in Jan 2023.
Its AUM has risen nearly 𝟑𝟒𝟎 𝐭𝐢𝐦𝐞𝐬 in the past three years – from Rs 10.5 crore in Jan 2020 to Rs 3,555 crore in Jan 2023.
For the stunning performance, the fund house gives credit to its proprietary VLRT framework.
The investment framework evaluates stocks on valuation, liquidity, risk, and timing.
Its fund manager Ankit Pande, too, has done commendable work since he took charge in 2020.
The investment framework evaluates stocks on valuation, liquidity, risk, and timing.
Its fund manager Ankit Pande, too, has done commendable work since he took charge in 2020.
Pande goes by his conviction and doesn’t mind going against his peers.
For instance, Quant Active Fund’s top stock holdings are quite different from its peers in the multi-cap category.
Check this table to see the top holdings of Quant Active Fund vs its category 👇
For instance, Quant Active Fund’s top stock holdings are quite different from its peers in the multi-cap category.
Check this table to see the top holdings of Quant Active Fund vs its category 👇
A good example of Pande’s high conviction and unique bets is ITC.
Why?⬇️
Because even as ITC’s stock price remained flat, the fund manager continued to increase the fund’s holding in the company’s stocks (See graph).
Why?⬇️
Because even as ITC’s stock price remained flat, the fund manager continued to increase the fund’s holding in the company’s stocks (See graph).
When the fund entered ITC, only two other funds in the multi-cap category were invested in it.
Currently, the fund has the highest amount invested in ITC among its peers.
The stock delivered 63% between January 2021 and December 2022, and the fund has benefitted from it.
Currently, the fund has the highest amount invested in ITC among its peers.
The stock delivered 63% between January 2021 and December 2022, and the fund has benefitted from it.
High conviction is one of the factors that contributed to the fund’s success.
There are many other things that have worked for the fund.
For example, the fund manager takes opportunistic bets.
He doesn’t believe in the buy & hold strategy.
There are many other things that have worked for the fund.
For example, the fund manager takes opportunistic bets.
He doesn’t believe in the buy & hold strategy.
The fund’s portfolio turnover ratio is 116%.
It means the fund entirely updated its #portfolio in the last one year.
A higher turnover ratio means the fund manager generated returns by “buy and sell” instead of “buy and hold”, which most funds follow.
It means the fund entirely updated its #portfolio in the last one year.
A higher turnover ratio means the fund manager generated returns by “buy and sell” instead of “buy and hold”, which most funds follow.
Now, let’s look at the fund’s market-cap strategy.
As a multi-cap fund, Quant Active Fund has to allocate 25% each in large, mid and small-cap stocks (SEBI rule since 2020).
For the remaining 25%, the fund manager has a free hand.
Majorly, the tilt has been towards large caps.
As a multi-cap fund, Quant Active Fund has to allocate 25% each in large, mid and small-cap stocks (SEBI rule since 2020).
For the remaining 25%, the fund manager has a free hand.
Majorly, the tilt has been towards large caps.
Is it worth investing in?
Based on the data, you can consider the fund if you are fine with how the fund manager churns the portfolio.
But it all depends on your goals, risk, asset mix and #investment horizon.
Based on the data, you can consider the fund if you are fine with how the fund manager churns the portfolio.
But it all depends on your goals, risk, asset mix and #investment horizon.
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