Quantum AMC has announced the launch of a new fund offer (NFO) with Quantum Small Cap Fund. It opens for subscription on Monday, October 16 and closes on Friday, October 27, 2023. It is an open-ended equity scheme predominantly investing in Small Cap Stocks. It will be co-managed by Chirag Mehta – Chief Investment Officer and Abhilasha Satale. The scheme will be benchmarked against S&P BSE 250 Small Cap total return index (TRI). Its investment objective is to generate capital appreciation by investing in Small Cap Stocks. The scheme will have a Direct and Regular Plan. The Fund managers will allocate 65%-100% to the equity and equity-related instruments of Small Cap Companies.
The Scheme Investment Philosophy include: True to Label Fund – Disciplined about fund capacity to prevent large size becoming a hindrance to performance; Prioritizes Liquidity – Minimum Rs. 2CR Average Value per day in all stocks; High-Conviction Portfolio – Of 25 to 60 Stocks for optimal diversification to avoid becoming a “Closet” Small Cap Index; Agile Portfolio Construction – Track Record since 2006 of judiciously building portfolios; Ensuring Limited Ownership – General limit of 5% of market capitalisation holding in all stocks; Sizeable Stock Exposure – Minimum weight of 2% at cost in each stock.
Mr. Chirag Mehta, Chief Investment Officer & Fund Manager, Quantum AMC, said, “Our Small Cap Fund is meant for investors who are looking for long-term capital appreciation. We have seen that in the long term, Small Cap stocks have demonstrated the capability of giving good returns potential. To ensure good returns for our customers, we will make investments in lesser-known, smaller businesses with growth prospects. Over a period of time, these companies increase their revenue and earnings, which can ensure good returns for our investors.”
For this NFO, the Fund Managers will be disciplined about fund capacity and be mindful of large size becoming a hindrance to the fund performance. Liquidity will be prioritized and a high conviction portfolio where 25-60 stocks will be chosen for optimal diversification. Quantum will have limited ownership in individual stocks where generally holdings are capped at 5% of market capitalization. Furthermore, Quantum AMC also maintains a sizable stock exposure by ensuring a minimum weight of 2% at cost in each stock. This approach minimizes concentration risk and fosters a balanced portfolio by offering a well-managed and diversified small-cap that aligns with the long-term financial goals.
