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Panel Discussion on Asset Classes of Equity, Debt & Gold
Speakers:
Sorbh Gupta – Fund Manager, Equity
Chirag Mehta – Sr. Fund Manager, Alternative Investments
December 17, 2020
1
Quantum Equity Fund of Funds
August 2021
Private & Confidential
TABLE OF CONTENTS
About us
About Quantum Mutual Fund
QEFOF Process
Performance of the Fund
ABOUT US
4
➢ Set the foundation for building an India-focused investment management institution across the 4
major asset classes: equity, fixed income, real estate, infrastructure: Steady growth in assets,
disciplined approach attracting clients
➢ Need for multiple asset classes to reduce the business risk of being dependent on any ONE
product:
India is not mainstream - huge volatility in valuations and client interest
➢ 1990 to 2004: investment processes refined by affiliation with international groups
➢ 2004 to 2008: invested in people
➢ 2004 to 2008: incubated teams to diversify business risk
➢ 2008 to 2009: invested in world-class systems
➢ 2010 onwards: maintaining our focus and discipline; succession planning
Group Update – The Past 25 Years
Our Journey so Far
• Quantum Long Term
Equity Value Fund
completes 10-year
track record
• Quantum Long
Term Equity Value
Fund
• Quantum Liquid
Fund
• Set up Quantum
AMC
• Quantum Gold Fund
• Quantum Nifty ETF
• Quantum Tax Saving
Fund
• Quantum Gold
Savings Fund
• India’s first fully
paperless Online
Investing Platform
• Quantum Equity
Fund of Funds
• “Path to Profit”
Launched
• Quantum Multi
Asset Fund of
Funds
• Quantum Dynamic
Bond Fund
• Transactions through
Email, WhatsApp &
Fax
• Launch of
Regular Plans
• Quantum India
ESG Equity Fund
2005 2006 2008 2009 2011 2012 2015 2016 2017 2019
6
➢ Currently managing an AUM of USD 3.14 Billion (~INR 22,953 crore) as August 31, 2021
➢Manages Indian equity investments for some of the largest institutions in the world,
including Sovereign Wealth Funds, pension funds, endowments, and foundations
➢Currently registered as a Portfolio Manager with SEBI and other international regulators
➢Quantum Advisors is 50.8% owned by Mr. Dayal and the Management Team and 49.2%
owned by HWIC Asia. HWIC Asia is ultimately promoted and wholly owned by Fairfax
Financial Holdings Limited (“FFHL”). FFHL is listed on the Toronto Stock Exchange and is
led by Mr. Prem Watsa, known as the Warren Buffet of Canada
About our Sponsor– Quantum Advisors Pvt. Ltd.
ABOUT
QUANTUM MUTUAL FUND
8
➢Quantum Mutual fund was established in 2006 with the launch of the Quantum Long Term
Equity Value Fund
➢Quantum Mutual Fund was the 29th, but India’s 1st Fund house that started with a focus on
a Low Cost Approach for investors
➢Simple range of funds: No confusion for investors
➢Disciplined Research and Investment Process: Team-driven, no “star” fund managers
➢Staying the course, no short cuts: Asset Managers, not Asset Gatherers
➢ Quantum MF AUM = Rs.2,034.30 Cr. as on 31st August 2021
➢ Number of Folios: 72,896 as on 31st August 2021
About Quantum Mutual Fund
Company Structure
Quantum Advisors, India (QAS), provides investment advisory services and manages
portfolios of FIIs and Indian clients. Registered as Portfolio Manager with SEBI since 1997. It
is led by Mr. I. V. Subramaniam (Subbu), who is the MD & Group Head (Equities) of the
company.
• Subbu joined Quantum in 1996 and has over 25 years of experience in the
investment management and financial services industry. Since June 2000, Subbu
has managed India-dedicated portfolios for Indian clients and since 2005, he has
managed India-dedicated portfolios for international clients. Subbu received his
Bachelor’s degree in commerce from Osmania University in 1983 and his Law
degree from Osmania University in 1986. He is a CFA Charter holder. Subbu was
born in 1962.
Quantum Asset Management, India (QAMC) SEBI Registered Asset Management Company
and Investment manager for Quantum Mutual Fund. It is led by Mr. Jimmy Patel, who is the
MD & CEO of the company.
• Jimmy Patel joined Quantum in 2010 and has over 3 decades of experience in
the financial services sector, and has held various key management roles. Along
with holding a Chartered Accountant’s degree, Mr. Patel has also completed his
L.L.B. from the University of Mumbai. Mr. Patel is a Fellow of the Chevening
Standard Chartered Financial Services Leadership Programme at Kings College,
London. He has been a Director on Association of Mutual Funds In India (AMFI)
Board and also has been a member of various AMFI and SEBI Committees.
Jimmy was born in 1967.
100% subsidiary of QAS
10
Always Putting Investors First, Even Above our Growth in AUM
Quantum Mutual Fund
SEBI Imposes Rule on MF
Industry
Refused to follow the opaque Entry Load Model Mar 2006 Jun 2009
Pioneered Direct to Investor, despite Slow Internet Speed and No Smart
Phones
Mar 2006 Jan 2013
One Scheme / product per asset class Mar 2006 Oct 2017
Exit Load swept into funds for the benefit of Unit Holders Mar 2006 Nov 2012
No Discrimination against Retail Investors Mar 2006 Sep 2012
Introduced the practice of following Total Return Index (TRI) as
benchmark for Equity Fund
Mar 2006 Jan 2018
Majority of Independent Directors on AMC Board Mar 2006 ?
Path to Profit (Investor Education & Awareness Program) Aug 2009 Sep 2012
100% Independent Board of Trustees Oct 2010 ?
Mark to Market valuation in Liquid Fund, irrespective of the maturity Jul 2012 April 2020
ZERO Upfront Distributor Commission and uniform trail commission
across all partners on Regular Plan
Apr 2017 Sep 2018
TER based on AUM Slabs Feb 2017 April 2019
Jimmy Patel
MD & CEO (2010)
Jimmy Patel has over 3 decades of experience in the financial services sector, and has held various key
management roles. Along with holding a Chartered Accountant’s degree, Mr. Patel has also completed his
L.L.B. from the University of Mumbai. Mr. Patel is a Fellow of the Chevening Standard Chartered Financial
Services Leadership Programme at Kings College, London. He has been a Director on Association of Mutual
Funds In India (AMFI) Board and also has been a member of various AMFI and SEBI Committees. Jimmy
was born in 1962.
Rina Nathani
Chief Business Officer (2020)
Rina has over 20 years of experience in building businesses, advising companies and leading teams to
successful outcomes. Prior to joining Quantum AMC, Rina was a Director in KPMG’s Advisory Practice in
the US and Head – Retail Businesses at Suminter India Organics, India. She has done Masters in
Management Studies from Jamnalal Bajaj institute of Management Studies (JBIMS). Rina was born in
1974.
Malay Vora
Head Legal & Compliance (2008)
Malay Vora has more than 15 years of experience in Legal, Compliance and Corporate Secretarial matters in
the financial service industry. He is a Commerce and Law Graduate and an Associate Member of Institute
of Company Secretaries in India. Malay is the Head of Legal & Compliance and the Compliance Officer for
Quantum AMC. He has been associated with Quantum since 2008. He has been a member of SEBI and AMFI
Committee. Malay was born in 1977.
Profile of Management Team - QAMC
Sandeep Bhosle
AVP Investor Interaction (2011)
Sandeep Bhosle has more than 18 years of experience in Financial Services and Market Research. He a
Post Graduate in Marketing Management. He has Completed Medium and Small Scale Industries
Management Development Program from NMIMS. Prior to Quantum AMC, he has been with ICICI Prudential
and Birla Sunlife Insurance and has been instrumental in developing Rural Markets and New Initiatives,
Process Quality, Loyalty Programs, R&R Initiatives.
Rajendra Gadiyar
Head Operations (2011)
Rajendra brings with him more than 2 decades of experience in Operations and Fund Accounting in Mutual
Funds and Insurance. Prior to joining Quantum, he was associated with various companies across
Insurance, Asset Management and Investment Management sectors. Rajendra was born in 1968.
Meera Shetty
Head Investor Services (2006)
Meera Shetty has almost two decades of experience in Investor Servicing. Before joining Quantum, she was
associated with Edelweiss AMC, Principal AMC and UTI-TSL. She holds a degree in Commerce and is an
MBA with dual specialization in Finance and Marketing. Meera was born in 1969.
Sorbh Gupta (2011)
Sorbh has more than 16
years of experience in equity
research as well as managing
funds. At present he’s the
Fund Manager for Quantum
Long Term Equity Value Fund
& Quantum Tax Saving Fund.
He’s Qualified as a Chartered
Accountant and has
completed all the 3 levels of
CFA. Sorbh brings with him a
wealth of experience of
having tracked varied sectors
in his previous work
assignments. Prior to joining
Quantum, he was associated
with Siddhesh
Capital Private Ltd. Sorbh
was born in 1980
Nilesh Shetty (2009)
Nilesh has more than 17
years of experience in
research. He has been a part
of Quantum Asset
Management Company since
2009, and at present is the
Fund Manager for Quantum
Long Term Equity Value Fund
and Quantum Multi Asset
Fund of Funds. Nilesh is a
qualified CFA (Chartered
Financial Analyst), ACMA
(CIMA, UK) and has
completed his Masters in
Management Studies
(Finance) from the Mumbai
University. Nilesh was born in
1980
Sneha Joshi (2015)
Sneha has over 8 years of
experience in economic,
credit and quantitative
research. She holds a Ph.D. in
Economics and has earned
an M.A. in Economics from
Gokhale Institute of Politics
and Economics. She joined
Quantum AMC in August,
2015. Prior to joining
Quantum, she was
associated with Credit
Capital Research as a fixed
income
research analyst. Sneha was
born in 1988
Hitendra Parekh
(2004)
Hitendra has close to 3
decades of experience in
financial services industry.
Prior to working with
Quantum, he has been with
the Unit Trust of India for 4
years and UTI Securities Ltd
for 9 years. He has
completed his B.Com &
Masters in Financial
Management from Mumbai
University. Hitendra was born
in 1968
Portfolio Team – Equity
Portfolio Team – Non Equity
Pankaj Pathak (2013) –
Fixed Income
Pankaj has over 11 years of
experience in Fixed income
investments and research. He
joined Quantum Asset
Management Company in August,
2013 and at present, is Fund
Manager for Quantum Dynamic
Bond Fund and Quantum Liquid
Fund. Prior to joining Quantum, he
was associated with Bank of
Maharashtra. Pankaj holds a Post
Graduate Diploma in Banking &
Finance from National Institute of
Bank Management, Pune and is
qualified CFA
Chirag Mehta (2006) –
Gold/Commodities
Chirag has 19 years of experience in the Indian
commodities markets. He also specializes in the field
of alternative investment strategies. He is a qualified
CAIA (Chartered Alternative Investment Analyst), and
has also completed his Masters in Management
Studies in Finance. He currently manages funds largely
in the field of alternative investments that includes
Gold Fund, a Multi Asset Fund of Funds and an Equity
fund of funds and is also a Fund Manager of Quantum
India ESG Equity Fund. He joined the Quantum after
gaining hands on experience in the physical
commodities market during internship with Kotak & Co.
Ltd and working on projects for the Federation of
Indian Commodities Exchanges. Chirag was born in
1981
Ghazal Jain (2020) –
Gold/Commodities
Ghazal has over 4 years of
experience in the field of finance
and alternative investments
including of Gold, Asset Allocation
and Personal Finance & investment
allocation. She has been with
Quantum Asset Management
Company since January, 2019.
Prior to joining Quantum, she was
associated with Fox Education LLP
and Bahubali Electronics
Private Limited
• What is the background?
• What is the experience?
PEOPLE
• Is there a clearly defined investment
philosophy across all market situations or is
this a ride-the-wave, “bull-market” manager?
PHILOSOPHY
• What is the research and investment process
and how reliable is it?
PROCESS
• Given the process, is the performance as
predictable as it should be?
PERFORMANCE
Criteria to Select a Good Fund House
QEFOF PROCESS
Out of ~550 Equity
schemes
You choose
6 – 8 Funds
Suggestions from
Distributors &
Bank RMs
Own Research
• Risk of selecting
• Wrong Fund House
• Wrong Fund Manager
• Wrong Philosophy
• Wrong Portfolio
• Hassles of transacting in and tracking
multiple funds
• Biased advice by
advisor/distributor/financial planner for
commissions
Usual Mutual Fund Investing Process
~550 Equity
schemes
6 – 8 Funds in your
portfolio
• Research based Fund selection
• Funds with consistent performance across
market cycles
• Balance between Risk & Return
• Avoid Portfolio concentration
• Invest in diversified portfolio of Large and
Mid Cap
• There is just one NAV to track and just one
folio – no hassles of making and tracking
multiple investments
Investing in Quantum Equity Fund of Funds
Actively managed Equity Funds
No Sector & Index Funds
Diversified Equity Funds
Diversified Equity Funds with a 3-Yr track record
• We see 3 year YoY returns, not CAGR
• At this stage the schemes are categorized as Large cap or Non Large cap
• Minimum 60% exposure to large caps required to be classified as Large cap scheme
Funds
Disqualified
With track record <
3 years disqualified
• Top 5 stocks/holdings <=40% of the portfolio,
• Top 10 stocks/holdings <=60% of the portfolio
• Portfolio turnover <=100%
Selected list of funds
Funds
Disqualified
Step 1: Filtration
Selected list of funds
Apply Phase I Quantitative criteria
Risk Adjusted Returns and
Parameters
Performance across
Market Cycles
Portfolio Valuation
Method • Multiple parameters of risk
adjusted returns that provide
insights into performance of the
fund with respect to the
benchmark and peer comparison
• Each parameter provides us with
some unique insight on fund
managers performance and
overall consistency
Return Performance
and Return
consistency
- We prefer fund
managers who
have participated
in multiple market
cycles and
proved their mettle
We also assign a
fair share to the
relative valuation
attractiveness of the
fund vis-à-vis its
peer group
Step 2: Scoring (Quantitative Criteria)
Selected list of funds
Apply Phase II Qualitative criteria
Investment Systems and Process Look for Red flags Consistency in
Characteristics of the
Portfolio
Method Detailed Questionnaire & meetings
• Portfolio construction process
• Limit on exposure to a single stock or a
particular sector
• Measurement – against benchmark / peers –
tracking error
• What is the limit on cash holdings?
• Other Funds managed by the fund manager
• Back up on portfolio? ‘Star’ fund manager risk
Fund manager meetings
provides us with an
opportunity to verify if the
Fund Manager walks the
talks and we don’t invest in
funds where we see any
red flags
Subjective assessment
• Philosophy
• Strategy adherence
• Process orientation
• Team dependence
• Internal vs external
research
Step 2: Scoring (Qualitative Criteria)
22
Portfolio & Fund Review
• Monthly review of chosen funds:
• Quantitative Performance Ranking
• Portfolio Characteristics
• Adherence to mandate
• Qualitative assessment - Fund managers are met regularly
• Create and monitor a pool of ‘investible’ funds
• Re-balancing is done yearly or opportunistically while deploying cash
• EXIT MECHANISM: Portfolio Funds not meeting the criteria are given 6 months
cooling period unless imperative to replace immediately on review
Quantum
Equity Fund
of Funds
Mr. Chirag Mehta
Work experience: 19 years. He has been managing this fund since November 1, 2013.
Fund of Funds Domestic.
Exposure to congruous and diligent performer from a cluttered equity fund universe of
approximately 500 funds.
The risk of wrong selection of funds is reduced as a basket of the finest schemes is chosen with
the research & expertise of Quantum.
Single manager risk is eliminated as your money is exposed to diverse fund management styles.
You can gain exposure to a basket of 6-7 diversified equity schemes with a mere 500 rupees.
No hassles of making and tracking multiple investments. A single NAV is all you need to check.
The fund can rebalance and reallocate your money from underperforming schemes to better.
performing ones in a more tax efficient way.
Long term capital appreciation.
Fund
Manager
Category of
Scheme
Features
Useful for
Performance of Quantum Equity Fund of Funds
Performance of Quantum Equity Fund of Funds
Direct Plan – Growth Option
The Scheme is managed by Mr. Chirag Mehta effective from November 1, 2013.
Period
Current Value of 10,000 Invested
at the beginning of a given period
Benchmark
Additional
Benchmark
Benchmark
Additional
Benchmark
Scheme
Returns (%)
S&P BSE
200 TRI
(%)
S&P BSE
Sensex TRI
(%)
Scheme
(Rs)
S&P BSE
200 TRI
(Rs)
S&P BSE
Sensex TRI
(Rs)
1 year 51.85% 55.45% 50.55% 15,185 15,545 15,055
3 years 13.31% 14.96% 15.49% 14,553 15,198 15,412
5 years 13.52% 15.82% 16.48% 18,855 20,853 21,451
7 years 13.49% 13.93% 13.00% 24,293 24,953 23,572
10 years 15.21% 15.15% 14.72% 41,267 41,064 39,529
Since Inception (20th July 2009) 14.75% 13.64% 13.16% 53,044 47,127 44,766
Past performance may or may not be sustained in the future. Load is not taken into consideration in scheme returns calculation. Data as of 31st August 2021.
Returns are net of Total Expenses and calculated on the basis of Compounded Annualized Growth Rate (CAGR). For performance of other Schemes Managed by
Mr. Chirag Mehta please see slide number 26 and 27
Performance of Quantum Equity Fund of Funds
Regular Plan – Growth Option
The Scheme is managed by Mr. Chirag Mehta effective from November 1, 2013.
Period
Current Value of 10,000 Invested
at the beginning of a given period
Benchmark
Additional
Benchmark
Benchmark
Additional
Benchmark
Scheme
Returns (%)
S&P BSE
200 TRI
(%)
S&P BSE
Sensex TRI
(%)
Scheme
(Rs)
S&P BSE
200 TRI
(Rs)
S&P BSE
Sensex TRI
(Rs)
1 year 51.48% 55.45% 50.55% 15,148 15,545 15,055
3 years 13.07% 14.96% 15.49% 14,459 15,198 15,412
Since Inception (1st April 2017) 13.44% 16.41% 17.65% 17,467 19,581 20,515
Past performance may or may not be sustained in the future. Load is not taken into consideration in scheme returns calculation.
Data as of 31st August 2021. Returns are net of Total Expenses and calculated on the basis of Compounded Annualized Growth Rate (CAGR). For performance of
other Schemes Managed by Mr. Chirag Mehta please see slide number 26 and 27.
Quantum Gold Fund
Mr. Chirag Mehta is managing the scheme effective from May 1, 2009. Ms. Ghazal Jain is co-managing the scheme effective from June 2, 2020
Period 1 year 3 years 5 years
Scheme
Returns (%)
Benchmark
Returns (%) #
Scheme
Returns (%)
Benchmark
Returns (%) #
Scheme
Returns (%)
Benchmark
Returns (%) #
Quantum Gold Fund (Gr) -10.88% -10.27% 14.80% 15.86% 7.26% 8.29%
Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data as of 31st August 2021
Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 Schemes and Ms. Ghazal Jain manages 2
Schemes of the Quantum Mutual Fund. The Scheme being Exchange Traded Fund has one plan to invest through stock exchange and having a single expense structure
Period 1 year 3 years 5 years
Scheme
Returns (%)
Benchmark
Returns (%) #
Scheme
Returns (%)
Benchmark
Returns (%) #
Scheme
Returns (%)
Benchmark
Returns (%) #
Quantum Gold Savings Fund–
Direct Plan (Gr)
-9.72% -10.27% 14.61% 15.86% 7.56% 8.29%
Quantum Gold Savings Fund–
Regular Plan (Gr)
-9.81% -10.27% 14.48% 15.86% NA NA
Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data as of 31st August 2021
Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR).
Mr. Chirag Mehta manages 5 Schemes and Ms. Ghazal Jain manages 2 Schemes of the Quantum Mutual Fund.
Quantum Gold Savings Fund
Mr. Chirag Mehta is managing the scheme effective from May 19, 2011. Ms. Ghazal Jain is co-managing the scheme effective from June 2, 2020
Other Schemes managed by Mr. Chirag Mehta
Quantum India ESG Equity Fund
Mr. Chirag Mehta effective from July 12, 2019.Co-managing with Ms. Sneha Joshi effective from July 12, 2019
Period 1 year 3 years 5 years
Scheme
Returns (%)
Benchmark
Returns (%) #
Scheme
Returns (%)
Benchmark
Returns (%) #
Scheme
Returns (%)
Benchmark
Returns (%) #
Quantum India ESG Equity Fund –
Direct Plan (Gr)
57.55% 60.09% NA NA NA NA
Quantum India ESG Equity Fund –
Regular Plan (Gr)
56.44% 60.09% NA NA NA NA
Past performance may or may not be sustained in the future. Data as on 31st August 2021
Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 Schemes and Ms. Sneha Joshi 1 Schemes of
the Quantum Mutual Fund. # NIFTY 100 ESG TRI.
Period 1 year 3 years 5 years
Scheme
Returns (%)
Benchmark
Returns (%) #
Scheme
Returns (%)
Benchmark
Returns (%) #
Scheme
Returns (%)
Benchmark
Returns (%) #
Quantum Multi Asset Fund of Funds* –
Direct Plan (Gr)
13.75% 18.69% 9.51% 12.65% 8.57% 11.41%
Quantum Multi Asset Fund of Funds* –
Regular Plan (Gr)
13.33% 18.69% 9.23% 12.65% NA NA
Past performance may or may not be sustained in the future. Load is not taken into consideration in Scheme Return Calculation. Data as of 31st August 2021. # Indicates CRISIL Composite
Bond Fund Index (20%) + S&P BSE SENSEX Total Return Index (40%) + CRISIL Liquid Index (25%) + Domestic price of Gold (15%). It is a customized index and it is rebalanced daily Returns are
net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 schemes of the Quantum Mutual Fund. Mr. Nilesh Shetty
manages 2 schemes of the Quantum Mutual Fund.
Quantum Multi Asset Fund of Funds
Mr. Chirag Mehta Co-managing along with Mr. Nilesh Shetty effective from July 11, 2012.
Other Schemes managed by Mr. Chirag Mehta
Product Label
Product Label
Product Label
Product Label
Product Label
For additional information, please contact:
Quantum Asset Management Company Private Limited
Hoechst House, 6th Floor,
Nariman Point
Mumbai-400021, India
Sandeep Bhosle
AVP- Customer Interaction
Email: SandeepB@QuantumAMC.com
Mobile: +91- 98209-43101
Office :+91-22-6144-7804
Fax :+91-22-2285-4318
Website: www.QuantumAMC.com
Disclaimer – Terms of Use
The data in this presentation are meant for general reading purpose only and are not meant to serve as a professional guide/investment
advice for the readers. This presentation has been prepared on the basis of publicly available information, internally developed data and
other sources believed to be reliable. Whilst no action has been suggested or offered based upon the information provided herein, due
care has been taken to endeavor that the facts are accurate and reasonable as on date. Quantum AMC shall make modifications and
alterations to the performance and related data from time to time as may be required as per SEBI Mutual Fund Regulations. Readers are
advised to seek independent professional advice and arrive at an informed investment decision before making any investment. None of
the Sponsors, the Investment Manager, the Trustee, their respective Directors, Employees, Affiliates or Representatives shall be liable
for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from
the data/information/opinions contained in this presentation. The Quantum AMC shall make modifications and alterations to the
performance and related data from time to time as may be required.
Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme are not being offered a guaranteed
or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme may go
up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment
risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the
sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme. Statutory Details: Quantum Mutual Fund (the
Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of
Sponsor limited to Rs. 1,00,000/-). Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset
Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act,
1956.
15th September 2021
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
Thank You
35

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QEFOF

  • 1. Panel Discussion on Asset Classes of Equity, Debt & Gold Speakers: Sorbh Gupta – Fund Manager, Equity Chirag Mehta – Sr. Fund Manager, Alternative Investments December 17, 2020 1 Quantum Equity Fund of Funds August 2021 Private & Confidential
  • 2. TABLE OF CONTENTS About us About Quantum Mutual Fund QEFOF Process Performance of the Fund
  • 4. 4 ➢ Set the foundation for building an India-focused investment management institution across the 4 major asset classes: equity, fixed income, real estate, infrastructure: Steady growth in assets, disciplined approach attracting clients ➢ Need for multiple asset classes to reduce the business risk of being dependent on any ONE product: India is not mainstream - huge volatility in valuations and client interest ➢ 1990 to 2004: investment processes refined by affiliation with international groups ➢ 2004 to 2008: invested in people ➢ 2004 to 2008: incubated teams to diversify business risk ➢ 2008 to 2009: invested in world-class systems ➢ 2010 onwards: maintaining our focus and discipline; succession planning Group Update – The Past 25 Years
  • 5. Our Journey so Far • Quantum Long Term Equity Value Fund completes 10-year track record • Quantum Long Term Equity Value Fund • Quantum Liquid Fund • Set up Quantum AMC • Quantum Gold Fund • Quantum Nifty ETF • Quantum Tax Saving Fund • Quantum Gold Savings Fund • India’s first fully paperless Online Investing Platform • Quantum Equity Fund of Funds • “Path to Profit” Launched • Quantum Multi Asset Fund of Funds • Quantum Dynamic Bond Fund • Transactions through Email, WhatsApp & Fax • Launch of Regular Plans • Quantum India ESG Equity Fund 2005 2006 2008 2009 2011 2012 2015 2016 2017 2019
  • 6. 6 ➢ Currently managing an AUM of USD 3.14 Billion (~INR 22,953 crore) as August 31, 2021 ➢Manages Indian equity investments for some of the largest institutions in the world, including Sovereign Wealth Funds, pension funds, endowments, and foundations ➢Currently registered as a Portfolio Manager with SEBI and other international regulators ➢Quantum Advisors is 50.8% owned by Mr. Dayal and the Management Team and 49.2% owned by HWIC Asia. HWIC Asia is ultimately promoted and wholly owned by Fairfax Financial Holdings Limited (“FFHL”). FFHL is listed on the Toronto Stock Exchange and is led by Mr. Prem Watsa, known as the Warren Buffet of Canada About our Sponsor– Quantum Advisors Pvt. Ltd.
  • 8. 8 ➢Quantum Mutual fund was established in 2006 with the launch of the Quantum Long Term Equity Value Fund ➢Quantum Mutual Fund was the 29th, but India’s 1st Fund house that started with a focus on a Low Cost Approach for investors ➢Simple range of funds: No confusion for investors ➢Disciplined Research and Investment Process: Team-driven, no “star” fund managers ➢Staying the course, no short cuts: Asset Managers, not Asset Gatherers ➢ Quantum MF AUM = Rs.2,034.30 Cr. as on 31st August 2021 ➢ Number of Folios: 72,896 as on 31st August 2021 About Quantum Mutual Fund
  • 9. Company Structure Quantum Advisors, India (QAS), provides investment advisory services and manages portfolios of FIIs and Indian clients. Registered as Portfolio Manager with SEBI since 1997. It is led by Mr. I. V. Subramaniam (Subbu), who is the MD & Group Head (Equities) of the company. • Subbu joined Quantum in 1996 and has over 25 years of experience in the investment management and financial services industry. Since June 2000, Subbu has managed India-dedicated portfolios for Indian clients and since 2005, he has managed India-dedicated portfolios for international clients. Subbu received his Bachelor’s degree in commerce from Osmania University in 1983 and his Law degree from Osmania University in 1986. He is a CFA Charter holder. Subbu was born in 1962. Quantum Asset Management, India (QAMC) SEBI Registered Asset Management Company and Investment manager for Quantum Mutual Fund. It is led by Mr. Jimmy Patel, who is the MD & CEO of the company. • Jimmy Patel joined Quantum in 2010 and has over 3 decades of experience in the financial services sector, and has held various key management roles. Along with holding a Chartered Accountant’s degree, Mr. Patel has also completed his L.L.B. from the University of Mumbai. Mr. Patel is a Fellow of the Chevening Standard Chartered Financial Services Leadership Programme at Kings College, London. He has been a Director on Association of Mutual Funds In India (AMFI) Board and also has been a member of various AMFI and SEBI Committees. Jimmy was born in 1967. 100% subsidiary of QAS
  • 10. 10 Always Putting Investors First, Even Above our Growth in AUM Quantum Mutual Fund SEBI Imposes Rule on MF Industry Refused to follow the opaque Entry Load Model Mar 2006 Jun 2009 Pioneered Direct to Investor, despite Slow Internet Speed and No Smart Phones Mar 2006 Jan 2013 One Scheme / product per asset class Mar 2006 Oct 2017 Exit Load swept into funds for the benefit of Unit Holders Mar 2006 Nov 2012 No Discrimination against Retail Investors Mar 2006 Sep 2012 Introduced the practice of following Total Return Index (TRI) as benchmark for Equity Fund Mar 2006 Jan 2018 Majority of Independent Directors on AMC Board Mar 2006 ? Path to Profit (Investor Education & Awareness Program) Aug 2009 Sep 2012 100% Independent Board of Trustees Oct 2010 ? Mark to Market valuation in Liquid Fund, irrespective of the maturity Jul 2012 April 2020 ZERO Upfront Distributor Commission and uniform trail commission across all partners on Regular Plan Apr 2017 Sep 2018 TER based on AUM Slabs Feb 2017 April 2019
  • 11. Jimmy Patel MD & CEO (2010) Jimmy Patel has over 3 decades of experience in the financial services sector, and has held various key management roles. Along with holding a Chartered Accountant’s degree, Mr. Patel has also completed his L.L.B. from the University of Mumbai. Mr. Patel is a Fellow of the Chevening Standard Chartered Financial Services Leadership Programme at Kings College, London. He has been a Director on Association of Mutual Funds In India (AMFI) Board and also has been a member of various AMFI and SEBI Committees. Jimmy was born in 1962. Rina Nathani Chief Business Officer (2020) Rina has over 20 years of experience in building businesses, advising companies and leading teams to successful outcomes. Prior to joining Quantum AMC, Rina was a Director in KPMG’s Advisory Practice in the US and Head – Retail Businesses at Suminter India Organics, India. She has done Masters in Management Studies from Jamnalal Bajaj institute of Management Studies (JBIMS). Rina was born in 1974. Malay Vora Head Legal & Compliance (2008) Malay Vora has more than 15 years of experience in Legal, Compliance and Corporate Secretarial matters in the financial service industry. He is a Commerce and Law Graduate and an Associate Member of Institute of Company Secretaries in India. Malay is the Head of Legal & Compliance and the Compliance Officer for Quantum AMC. He has been associated with Quantum since 2008. He has been a member of SEBI and AMFI Committee. Malay was born in 1977. Profile of Management Team - QAMC
  • 12. Sandeep Bhosle AVP Investor Interaction (2011) Sandeep Bhosle has more than 18 years of experience in Financial Services and Market Research. He a Post Graduate in Marketing Management. He has Completed Medium and Small Scale Industries Management Development Program from NMIMS. Prior to Quantum AMC, he has been with ICICI Prudential and Birla Sunlife Insurance and has been instrumental in developing Rural Markets and New Initiatives, Process Quality, Loyalty Programs, R&R Initiatives. Rajendra Gadiyar Head Operations (2011) Rajendra brings with him more than 2 decades of experience in Operations and Fund Accounting in Mutual Funds and Insurance. Prior to joining Quantum, he was associated with various companies across Insurance, Asset Management and Investment Management sectors. Rajendra was born in 1968. Meera Shetty Head Investor Services (2006) Meera Shetty has almost two decades of experience in Investor Servicing. Before joining Quantum, she was associated with Edelweiss AMC, Principal AMC and UTI-TSL. She holds a degree in Commerce and is an MBA with dual specialization in Finance and Marketing. Meera was born in 1969.
  • 13. Sorbh Gupta (2011) Sorbh has more than 16 years of experience in equity research as well as managing funds. At present he’s the Fund Manager for Quantum Long Term Equity Value Fund & Quantum Tax Saving Fund. He’s Qualified as a Chartered Accountant and has completed all the 3 levels of CFA. Sorbh brings with him a wealth of experience of having tracked varied sectors in his previous work assignments. Prior to joining Quantum, he was associated with Siddhesh Capital Private Ltd. Sorbh was born in 1980 Nilesh Shetty (2009) Nilesh has more than 17 years of experience in research. He has been a part of Quantum Asset Management Company since 2009, and at present is the Fund Manager for Quantum Long Term Equity Value Fund and Quantum Multi Asset Fund of Funds. Nilesh is a qualified CFA (Chartered Financial Analyst), ACMA (CIMA, UK) and has completed his Masters in Management Studies (Finance) from the Mumbai University. Nilesh was born in 1980 Sneha Joshi (2015) Sneha has over 8 years of experience in economic, credit and quantitative research. She holds a Ph.D. in Economics and has earned an M.A. in Economics from Gokhale Institute of Politics and Economics. She joined Quantum AMC in August, 2015. Prior to joining Quantum, she was associated with Credit Capital Research as a fixed income research analyst. Sneha was born in 1988 Hitendra Parekh (2004) Hitendra has close to 3 decades of experience in financial services industry. Prior to working with Quantum, he has been with the Unit Trust of India for 4 years and UTI Securities Ltd for 9 years. He has completed his B.Com & Masters in Financial Management from Mumbai University. Hitendra was born in 1968 Portfolio Team – Equity
  • 14. Portfolio Team – Non Equity Pankaj Pathak (2013) – Fixed Income Pankaj has over 11 years of experience in Fixed income investments and research. He joined Quantum Asset Management Company in August, 2013 and at present, is Fund Manager for Quantum Dynamic Bond Fund and Quantum Liquid Fund. Prior to joining Quantum, he was associated with Bank of Maharashtra. Pankaj holds a Post Graduate Diploma in Banking & Finance from National Institute of Bank Management, Pune and is qualified CFA Chirag Mehta (2006) – Gold/Commodities Chirag has 19 years of experience in the Indian commodities markets. He also specializes in the field of alternative investment strategies. He is a qualified CAIA (Chartered Alternative Investment Analyst), and has also completed his Masters in Management Studies in Finance. He currently manages funds largely in the field of alternative investments that includes Gold Fund, a Multi Asset Fund of Funds and an Equity fund of funds and is also a Fund Manager of Quantum India ESG Equity Fund. He joined the Quantum after gaining hands on experience in the physical commodities market during internship with Kotak & Co. Ltd and working on projects for the Federation of Indian Commodities Exchanges. Chirag was born in 1981 Ghazal Jain (2020) – Gold/Commodities Ghazal has over 4 years of experience in the field of finance and alternative investments including of Gold, Asset Allocation and Personal Finance & investment allocation. She has been with Quantum Asset Management Company since January, 2019. Prior to joining Quantum, she was associated with Fox Education LLP and Bahubali Electronics Private Limited
  • 15. • What is the background? • What is the experience? PEOPLE • Is there a clearly defined investment philosophy across all market situations or is this a ride-the-wave, “bull-market” manager? PHILOSOPHY • What is the research and investment process and how reliable is it? PROCESS • Given the process, is the performance as predictable as it should be? PERFORMANCE Criteria to Select a Good Fund House
  • 17. Out of ~550 Equity schemes You choose 6 – 8 Funds Suggestions from Distributors & Bank RMs Own Research • Risk of selecting • Wrong Fund House • Wrong Fund Manager • Wrong Philosophy • Wrong Portfolio • Hassles of transacting in and tracking multiple funds • Biased advice by advisor/distributor/financial planner for commissions Usual Mutual Fund Investing Process
  • 18. ~550 Equity schemes 6 – 8 Funds in your portfolio • Research based Fund selection • Funds with consistent performance across market cycles • Balance between Risk & Return • Avoid Portfolio concentration • Invest in diversified portfolio of Large and Mid Cap • There is just one NAV to track and just one folio – no hassles of making and tracking multiple investments Investing in Quantum Equity Fund of Funds
  • 19. Actively managed Equity Funds No Sector & Index Funds Diversified Equity Funds Diversified Equity Funds with a 3-Yr track record • We see 3 year YoY returns, not CAGR • At this stage the schemes are categorized as Large cap or Non Large cap • Minimum 60% exposure to large caps required to be classified as Large cap scheme Funds Disqualified With track record < 3 years disqualified • Top 5 stocks/holdings <=40% of the portfolio, • Top 10 stocks/holdings <=60% of the portfolio • Portfolio turnover <=100% Selected list of funds Funds Disqualified Step 1: Filtration
  • 20. Selected list of funds Apply Phase I Quantitative criteria Risk Adjusted Returns and Parameters Performance across Market Cycles Portfolio Valuation Method • Multiple parameters of risk adjusted returns that provide insights into performance of the fund with respect to the benchmark and peer comparison • Each parameter provides us with some unique insight on fund managers performance and overall consistency Return Performance and Return consistency - We prefer fund managers who have participated in multiple market cycles and proved their mettle We also assign a fair share to the relative valuation attractiveness of the fund vis-à-vis its peer group Step 2: Scoring (Quantitative Criteria)
  • 21. Selected list of funds Apply Phase II Qualitative criteria Investment Systems and Process Look for Red flags Consistency in Characteristics of the Portfolio Method Detailed Questionnaire & meetings • Portfolio construction process • Limit on exposure to a single stock or a particular sector • Measurement – against benchmark / peers – tracking error • What is the limit on cash holdings? • Other Funds managed by the fund manager • Back up on portfolio? ‘Star’ fund manager risk Fund manager meetings provides us with an opportunity to verify if the Fund Manager walks the talks and we don’t invest in funds where we see any red flags Subjective assessment • Philosophy • Strategy adherence • Process orientation • Team dependence • Internal vs external research Step 2: Scoring (Qualitative Criteria)
  • 22. 22 Portfolio & Fund Review • Monthly review of chosen funds: • Quantitative Performance Ranking • Portfolio Characteristics • Adherence to mandate • Qualitative assessment - Fund managers are met regularly • Create and monitor a pool of ‘investible’ funds • Re-balancing is done yearly or opportunistically while deploying cash • EXIT MECHANISM: Portfolio Funds not meeting the criteria are given 6 months cooling period unless imperative to replace immediately on review
  • 23. Quantum Equity Fund of Funds Mr. Chirag Mehta Work experience: 19 years. He has been managing this fund since November 1, 2013. Fund of Funds Domestic. Exposure to congruous and diligent performer from a cluttered equity fund universe of approximately 500 funds. The risk of wrong selection of funds is reduced as a basket of the finest schemes is chosen with the research & expertise of Quantum. Single manager risk is eliminated as your money is exposed to diverse fund management styles. You can gain exposure to a basket of 6-7 diversified equity schemes with a mere 500 rupees. No hassles of making and tracking multiple investments. A single NAV is all you need to check. The fund can rebalance and reallocate your money from underperforming schemes to better. performing ones in a more tax efficient way. Long term capital appreciation. Fund Manager Category of Scheme Features Useful for Performance of Quantum Equity Fund of Funds
  • 24. Performance of Quantum Equity Fund of Funds Direct Plan – Growth Option The Scheme is managed by Mr. Chirag Mehta effective from November 1, 2013. Period Current Value of 10,000 Invested at the beginning of a given period Benchmark Additional Benchmark Benchmark Additional Benchmark Scheme Returns (%) S&P BSE 200 TRI (%) S&P BSE Sensex TRI (%) Scheme (Rs) S&P BSE 200 TRI (Rs) S&P BSE Sensex TRI (Rs) 1 year 51.85% 55.45% 50.55% 15,185 15,545 15,055 3 years 13.31% 14.96% 15.49% 14,553 15,198 15,412 5 years 13.52% 15.82% 16.48% 18,855 20,853 21,451 7 years 13.49% 13.93% 13.00% 24,293 24,953 23,572 10 years 15.21% 15.15% 14.72% 41,267 41,064 39,529 Since Inception (20th July 2009) 14.75% 13.64% 13.16% 53,044 47,127 44,766 Past performance may or may not be sustained in the future. Load is not taken into consideration in scheme returns calculation. Data as of 31st August 2021. Returns are net of Total Expenses and calculated on the basis of Compounded Annualized Growth Rate (CAGR). For performance of other Schemes Managed by Mr. Chirag Mehta please see slide number 26 and 27
  • 25. Performance of Quantum Equity Fund of Funds Regular Plan – Growth Option The Scheme is managed by Mr. Chirag Mehta effective from November 1, 2013. Period Current Value of 10,000 Invested at the beginning of a given period Benchmark Additional Benchmark Benchmark Additional Benchmark Scheme Returns (%) S&P BSE 200 TRI (%) S&P BSE Sensex TRI (%) Scheme (Rs) S&P BSE 200 TRI (Rs) S&P BSE Sensex TRI (Rs) 1 year 51.48% 55.45% 50.55% 15,148 15,545 15,055 3 years 13.07% 14.96% 15.49% 14,459 15,198 15,412 Since Inception (1st April 2017) 13.44% 16.41% 17.65% 17,467 19,581 20,515 Past performance may or may not be sustained in the future. Load is not taken into consideration in scheme returns calculation. Data as of 31st August 2021. Returns are net of Total Expenses and calculated on the basis of Compounded Annualized Growth Rate (CAGR). For performance of other Schemes Managed by Mr. Chirag Mehta please see slide number 26 and 27.
  • 26. Quantum Gold Fund Mr. Chirag Mehta is managing the scheme effective from May 1, 2009. Ms. Ghazal Jain is co-managing the scheme effective from June 2, 2020 Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Gold Fund (Gr) -10.88% -10.27% 14.80% 15.86% 7.26% 8.29% Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data as of 31st August 2021 Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 Schemes and Ms. Ghazal Jain manages 2 Schemes of the Quantum Mutual Fund. The Scheme being Exchange Traded Fund has one plan to invest through stock exchange and having a single expense structure Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Gold Savings Fund– Direct Plan (Gr) -9.72% -10.27% 14.61% 15.86% 7.56% 8.29% Quantum Gold Savings Fund– Regular Plan (Gr) -9.81% -10.27% 14.48% 15.86% NA NA Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data as of 31st August 2021 Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 Schemes and Ms. Ghazal Jain manages 2 Schemes of the Quantum Mutual Fund. Quantum Gold Savings Fund Mr. Chirag Mehta is managing the scheme effective from May 19, 2011. Ms. Ghazal Jain is co-managing the scheme effective from June 2, 2020 Other Schemes managed by Mr. Chirag Mehta
  • 27. Quantum India ESG Equity Fund Mr. Chirag Mehta effective from July 12, 2019.Co-managing with Ms. Sneha Joshi effective from July 12, 2019 Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum India ESG Equity Fund – Direct Plan (Gr) 57.55% 60.09% NA NA NA NA Quantum India ESG Equity Fund – Regular Plan (Gr) 56.44% 60.09% NA NA NA NA Past performance may or may not be sustained in the future. Data as on 31st August 2021 Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 Schemes and Ms. Sneha Joshi 1 Schemes of the Quantum Mutual Fund. # NIFTY 100 ESG TRI. Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Multi Asset Fund of Funds* – Direct Plan (Gr) 13.75% 18.69% 9.51% 12.65% 8.57% 11.41% Quantum Multi Asset Fund of Funds* – Regular Plan (Gr) 13.33% 18.69% 9.23% 12.65% NA NA Past performance may or may not be sustained in the future. Load is not taken into consideration in Scheme Return Calculation. Data as of 31st August 2021. # Indicates CRISIL Composite Bond Fund Index (20%) + S&P BSE SENSEX Total Return Index (40%) + CRISIL Liquid Index (25%) + Domestic price of Gold (15%). It is a customized index and it is rebalanced daily Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 schemes of the Quantum Mutual Fund. Mr. Nilesh Shetty manages 2 schemes of the Quantum Mutual Fund. Quantum Multi Asset Fund of Funds Mr. Chirag Mehta Co-managing along with Mr. Nilesh Shetty effective from July 11, 2012. Other Schemes managed by Mr. Chirag Mehta
  • 33. For additional information, please contact: Quantum Asset Management Company Private Limited Hoechst House, 6th Floor, Nariman Point Mumbai-400021, India Sandeep Bhosle AVP- Customer Interaction Email: SandeepB@QuantumAMC.com Mobile: +91- 98209-43101 Office :+91-22-6144-7804 Fax :+91-22-2285-4318 Website: www.QuantumAMC.com
  • 34. Disclaimer – Terms of Use The data in this presentation are meant for general reading purpose only and are not meant to serve as a professional guide/investment advice for the readers. This presentation has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been suggested or offered based upon the information provided herein, due care has been taken to endeavor that the facts are accurate and reasonable as on date. Quantum AMC shall make modifications and alterations to the performance and related data from time to time as may be required as per SEBI Mutual Fund Regulations. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investment. None of the Sponsors, the Investment Manager, the Trustee, their respective Directors, Employees, Affiliates or Representatives shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the data/information/opinions contained in this presentation. The Quantum AMC shall make modifications and alterations to the performance and related data from time to time as may be required. Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme. Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-). Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956. 15th September 2021 Mutual fund investments are subject to market risks, read all scheme related documents carefully.