Let’s start with the performance.
@quantmutual story can be told in two halves: before 2020 and after it 2020.
Earlier, it was an easy to ignore fund.
In the past three years, its one of the best turnaround stories in the #mutualfunds industry. (See image)
@quantmutual story can be told in two halves: before 2020 and after it 2020.
Earlier, it was an easy to ignore fund.
In the past three years, its one of the best turnaround stories in the #mutualfunds industry. (See image)
For this transformation, a lot of credit goes to Quant Small Cap’s fund manager, Ankit Pande.
Pande joined the fund house after Quant Mutual Fund acquired Escorts Mutual Fund in 2018.
The fund’s fortunes reversed since his joining.
Pande joined the fund house after Quant Mutual Fund acquired Escorts Mutual Fund in 2018.
The fund’s fortunes reversed since his joining.
Pande follows a style-agnostic approach.
He selects businesses based on the proprietary VLRT model of Quant Mutual Fund.
The model evaluates stocks on 4 factors: valuation, liquidity, risk, and timing.
Let’s see how this impacts the scheme’s holdings. 👇
He selects businesses based on the proprietary VLRT model of Quant Mutual Fund.
The model evaluates stocks on 4 factors: valuation, liquidity, risk, and timing.
Let’s see how this impacts the scheme’s holdings. 👇
Take a look at the top holdings of Quant Small Cap.
Pande doesn’t necessarily hold his top bets for a long time.
This is true for most schemes that he manages.
Some of his top bets have been part of the #portfolio only for a couple of months (See table).
Pande doesn’t necessarily hold his top bets for a long time.
This is true for most schemes that he manages.
Some of his top bets have been part of the #portfolio only for a couple of months (See table).
On the face of it, the fund’s portfolio looks diversified with 71 stocks.
But there is a sizable concentration in the top holdings.
For instance, the top 10 stocks of the fund account for 46% of the portfolio, while the category average is 28%.
But there is a sizable concentration in the top holdings.
For instance, the top 10 stocks of the fund account for 46% of the portfolio, while the category average is 28%.
With such an aggressive approach to stock-picking, you may expect the fund to do badly during #market downturns.
But that is not the case.
Since 2020, in every quarter when the #benchmark has been in the red, the fund has been able to contain its fall better.
But that is not the case.
Since 2020, in every quarter when the #benchmark has been in the red, the fund has been able to contain its fall better.
Is it #investment worthy?
The fund has delivered in both rising & falling markets.
But has a limited track record of outperformance.
That said, if you have faith in the scheme & the fund manager, you can start small and gradually increase the allocation.
The fund has delivered in both rising & falling markets.
But has a limited track record of outperformance.
That said, if you have faith in the scheme & the fund manager, you can start small and gradually increase the allocation.
Do keep two thing in mind before you invest.
One, always have a longer horizon when investing in #smallcaps funds
Two, they experience steeper ups and downs compared to large and mid caps.
So, be ready for higher volatility.
One, always have a longer horizon when investing in #smallcaps funds
Two, they experience steeper ups and downs compared to large and mid caps.
So, be ready for higher volatility.
This is a standalone in-depth review, not a fund recommendation.
The idea is to help you understand funds before you invest in them.
If you want to see the best fund in any category or wish to compare multiple schemes, please log into the app or visit our website.
The idea is to help you understand funds before you invest in them.
If you want to see the best fund in any category or wish to compare multiple schemes, please log into the app or visit our website.
In the small-cap category, we have also reviewed SBI Small Cap, Axis Small Cap and Nippon India Small Cap.
SBI Small Cap:
Axis Small Cap:
Nippon India Small Cap:
We will do more reviews in the future.
SBI Small Cap:
Axis Small Cap:
Nippon India Small Cap:
We will do more reviews in the future.
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So, if you find this useful, show some love. ❤️
Please like, share, and retweet the first tweet.
For more threads, follow us.
Also, click on the bell icon in the profile section so you don't miss any threads.đź””
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