Quant Equity Mutual Fund

Investment Objective

Investors mainly consider investing in Quant Equity Mutual Fund schemes for long-term capital appreciation by wealth allocation towards equity instruments. This mutual fund specifically used quantitative techniques and algorithms for meeting investment goals. This means that the fund follows an objective and predictable formal method. Furthermore, it aims to amplify the fund’s exposure to various investment principles such as growth, value, and quality within risk constraints.

Risks Involved in Quant Equity Mutual Fund

Quant Equity Mutual Fund schemes can be faired as moderately high to high-risk funds when compared to other kinds of mutual funds like debt and balanced funds. The funds are largely affected by market conditions and the stocks the fund invests in, which can be evident in its past performance graph. Furthermore, the price and volume of the stock markets can also affect the fund’s performance along with movements in interest rates, exchange rates, government policies, tax laws and other economic developments.

Return Potential of Quant Equity Mutual Fund

Quant Equity Mutual Fun has a NAV of INR 230.6443 as of 26th April 2023, and an expense ratio of 2.25%. The fund has a very high-risk profile and has given a return of -1.04% in the last year. The fund tracks the NIFTY 500 Total Return Index as its benchmark.

Who Should Invest in Quant Equity Mutual Fund?

An ideal investor for Quant Equity Mutual Fund schemes is someone who can keep their capital invested for a long period of time, i.e. over 5 years. Moreover, the funds are subjected to market risks which make up another factor that investors need to be aware of. This means that someone with a higher appetite for risk should consider investing in the Quant Equity Mutual Funds. Quant funds are also appropriate for investors who want to hold their investments for an extended period of time, as the proposed technique may take considerable time to reap the rewards fully. As a result, investors seeking to book profits while markets are favourable may refrain from quant funds.

Things To Consider Before Investing in Quant Equity Mutual Fund

Some of the things to consider before investing in Quant Equity Mutual Fund are:

• Your investment goal: You should have a clear and quantifiable goal for your investment, such as retirement planning, children’s education, home purchase, etc.
• Your investment horizon: You should know how long you want to stay invested in the fund.
• Your risk appetite: You should be aware of your risk capacity and risk tolerance.
• The fund performance: You should look at the past performance of the fund in terms of returns, risk-adjusted returns, consistency, and benchmark comparison.
• The fund features: You should examine the fund’s objective, strategy, portfolio composition, expense ratio, exit load, minimum investment amount, etc.
• The fund management team: You should look at the experience and longevity of the fund management team.

Tax on Quant Equity Mutual Fund

Quant Tax Plan is an ELSS (Equity Linked Savings Scheme) mutual fund that invests in domestic equities and also allows you to save tax u/s 80 C of the Income Tax Act. However, your investments in this fund are subject to a lock-in period of 3 years. The current tax rate for long-term capital gains from ELSS funds is 10% if your total long-term capital gain exceeds 1 lakh in a financial year. Any cess/surcharge is not included. However, you can claim a deduction on your taxable income up to INR 1.5 lakhs by investing in ELSS funds.