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Investment Objective
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To generate long-term capital appreciation by investing with focus on riding business cycles through allocation between sectors and stocks at
different stages of business cycles. However, there is no assurance or guarantee that the investment objective of the Scheme will be
achieved. The scheme does not assure or guarantee any returns.
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Category of Scheme
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Thematic Fund
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Type of Scheme
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An open-ended equity scheme following business cycles based investing theme
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Inception Date
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30-May-23
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Lock in Period
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Nil
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Minimum Application Amount
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For new investor, INR 5000/- and any amount thereafter
For existing investors, INR 1000/- and any amount thereafter
For Systematic Investment Plan (SIP), the minimum amount is INR 1000/- and in multiples
of INR 1/- thereafter.
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Benchmark Index
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NSE 500 TRI
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Load Structure
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Entry Load - Nil
Exit Load -15 Days / 1% Effective From August 11,2023
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Asset Allocation Pattern
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Under normal circumstances, the asset allocation pattern will be as follows
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Indicative allocations (% of total assets)
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Risk Profile
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Instrument
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Minimum
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Maximum
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High/Medium/Low
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Equity & equity related instruments including equity ETFs selected
on the basis of business cycle
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80
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100
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Very High
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Other equity and equity related instruments including equity ETFs
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0
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20
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Very High
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Debt and money market instruments * including debt ETFs & Gold &
Silver ETFs #
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0
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20
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Low to Medium
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Foreign securities including ADRs / GDRs / Foreign equity and debt
securities
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0
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20
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Very High
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Units issued by REITs and InvITs
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0
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20
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Very High
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The Scheme does not intend to invest in securities with Structured Obligations or Credit Enhancements. The Scheme does not intend to
invest in debt instruments with special features in line with SEBI Circular no. SEBI/HO/IMD/DF4/CIR/P/2021/032 dated March 10, 2021.
* In line with SEBI Circular dated November 29, 2022, the scheme shall not invest more than:
a. 10% of its NAV in debt and money market securities rated AAA; or b. 8% of its NAV in debt and money market securities rated AA; or
c. 6% of its NAV in debt and money market securities rated A and below: issued by a single issuer.
The above investment limits may be extended by up to 2% of the NAV of the scheme with prior approval of the Board of Trustees and
Board of Directors of the AMC, subject to compliance with the overall 12% limit specified in clause 1 of Seventh Schedule of SEBI MF
Regulation.
Within the limit mentioned in the above paragraph i.e. in clause 4 of Seventh Schedule of SEBI (Mutual Funds) Regulations 1996, the
scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any
fees, provided that aggregate interscheme investment made by all schemes under the same management or in schemes under the
management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund.
#Although the gross debt and money market instruments related exposure may seek investment opportunities in foreign securities
including ADRs / GDRs / Foreign equity and debt securities subject to the Clause 12.17 of the SEBI Master circular for Mutual Funds
and any other Circulars issued from time to time. Such investment shall not exceed 20% of the net assets of the Scheme.
The investment pattern stated above is indicative and may be changed due to market conditions. The proportion of the scheme
invested in each type of security will vary in accordance with microeconomic & macroeconomic conditions, interest rates, and other
relevant considerations. These instances may be beyond the control of the fund manager & the AMC and hence may require such
deviations. Such changes in the investment pattern will be transitionary in nature and will be undertaken as defensive considerations
only in accordance with SEBI circular dated March 04, 2021. Defensive considerations may be determined by the fund manager and
in case of deviations on account of exogenous factors, the fund manager will endeavor to rebalance the Scheme within 30 calender
days from the date of such deviation. The intention being at all times to seek to protect the interests of the Unit holders. The risks
associated with each investment are an important factor as well. The net assets of this scheme shall predominantly be invested as
per the investment pattern stated above.
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Fund Manager
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Mr. Sandeep Tandon, Mr. Ankit Pande, Mr. Sanjeev Sharma, Mr. Vasav Sahgal
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Plans Available
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Regular Plan and Direct Plan.
(The Regular and Direct plan will have a common portfolio)
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Options Available
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1. Growth Option and 2. IDCW
The IDCW option has the following facilities: (i) IDCW Reinvestment Facility. (ii) IDCW Pay-out Facility. Default Investment option is Growth Option. For the IDCW option, the default facility will be IDCW Reinvestment.
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Applicable NAV
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The NAV applicable for purchase or redemption or switching of Units based on the time of the Business Day on which the application is time stamped
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Risk Factors
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For detailed scheme/securities related risk factors, please refer to the Scheme Information Document
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Investment strategy
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The scheme will be a diversified equity fund which will invest predominantly in
equity and equity related securities with focus on riding business cycles through
dynamic allocation between various sectors and stocks at different stages of business
cycles in the economy. Business cycles in an economy are typically characterized
by the fluctuations in economic activity measured by real GDP growth and other macroeconomic
variables. A business cycle is basically defined in terms of periods of expansion
and contraction. During expansion, an economy experiences an increase in economic
activity as evidenced by real GDP growth, industrial production, employment, personal
income etc. whereas during contraction, the pace of economic activity slows down.
The business cycle can be effectively used to position one’s investment portfolio.
The business cycle is a critical determinant of equity sector performance over the
intermediate term. The scheme would aim to deploy the business cycle approach in
investing by identifying economic trends and investing in the sectors and stocks
that are likely to outperform at any given stage of business cycle. For example,
during period of expansion, the scheme would aim to predominantly invest in stocks
of companies in the cyclical sectors as they tend to outperform the broader market
during expansionary phase. Similarly, during period of contraction the scheme would
look to invest in defensive sectors stocks or sectors that are less sensitive to
changes in overall economic activity.
Equity Strategy: The scheme would follow the top down approach of portfolio construction
to identify the stage of business cycle, through domestic and global risk appetite
and liquidity analytics, to arrive at a risk on/risk off assessment for sectors
and stocks. The portfolio will be constructed on the basis of various broad factors
such as prevailing market conditions, domestic and global economic scenarios, business
and consumer sentiment, risk indicators, and a host of proprietary indicators (corporate,
geopolitical, socio-cultural, economic, regulatory etc.) forming part of our Predictive
Analytics suite. Coupled with our signature VLRT Framework, as our established risk
mitigation tool, the data will be translated to put forth different scenarios that
will highlight relevant sectors and stocks for portfolio construction. The scheme
will follow a portfolio diversification approach across industries/sectors/stocks/market
capitalizations at different stages of business cycles in the economy, depending
on prevailing opportunities. The scheme will favour companies that offer the best
value relative to their respective long-term growth prospects, returns on capital,
and management quality.
Fixed Income Strategy: The scheme proposes to invest in a diversified portfolio
of high quality debt and money market instruments to generate regular income. The
fund manager will allocate the assets of the scheme taking into consideration the
prevailing interest rate scenario & the liquidity of the different instruments.
The portfolio duration and credit exposures will be decided based on a thorough
research of the general macroeconomic condition, political and fiscal environment,
systemic liquidity, inflationary expectations, corporate performance and other economic
considerations. The scheme may invest in equity derivatives instruments to the extent
permitted under and in accordance with the applicable Regulations, including for
the purposes of hedging, portfolio balancing and optimizing returns. Hedging does
not mean maximization of returns but only attempts to reduce systemic or market
risk that may be inherent in the investment.
quant Business Cycle Fund shall aim to provide long term growth by investing at-least
80% of its net assets in equity and equity related instruments (including equity
ETFs) selected on the basis of business cycle. This fund may also invest up to 20%
of its net assets into debt & money market instruments (including debt ETFs), up
to 20% into Gold & Silver ETFs or up to 10% in REITs & InVITs. Investments in Foreign
Securities shall not be more than 20%. Subject to the Regulations, the securities
mentioned in “Where will the Scheme invest” above could be listed, unlisted, privately
placed, secured, unsecured, rated or unrated and of varying maturity. The securities
may be acquired through Initial Public Offerings (IPOs), secondary market operations,
private placement, rights offers or negotiated deals.
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Statutory Details: Sponsor: quant Capital Finance & Investments
Private Limited
Investment Manager:quant Money Managers Limited. CIN: U74899MH1995PLC324387
For Further Details :- https://quantmutual.com/downloads/factsheet
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