An open ended fund of fund scheme which will invest in units of the Quantum Gold Fund (ETF)
Quantum Mutual Fund recently announced the launch of the “Quantum Gold Savings Fund”, an open ended fund of fund scheme which will invest predominantly in units of the Quantum Gold Fund (ETF).
The New Fund Offer opens on Thursday, April 28, 2011 and will close on Thursday, May 12, 2011. The scheme will reopen for continuous subscription on Thursday, May 26, 2011.
The Quantum Gold Savings Fund enables investors to invest in the scheme through lump sum investment or Systematic Investment Plans (available after the scheme reopens).This fund addresses investors who wish to invest in gold, but do not have a Demat or trading account required for investing via Exchange Traded Funds (ETFs).
Commenting on giving investors some much needed respite from purity concerns, security issues and additional making charges and premiums by launching such an investment vehicle for gold, Chirag Mehta, Fund Manager – Commodities, said, “Gold has always been a much trusted investment avenue which works as a brilliant keeper of value. Even when the markets crashed in 2008, and the Sensex returns were in negative-52%, gold stood strong at 31% in INR valuation. Investors are increasingly recognizing this ability of gold to serve as a safe haven asset, but requisites like a Demat and Trading account often stop them short of investing in gold through convenient channels like ETFs. At Quantum, we believe investing is simple. And through the Quantum Gold Savings Fund we have attempted to launch a fund to ensure investing in gold retains its simplicity and cost effectiveness.”
Even though the Quantum Gold Savings Fund in turn invests in the Quantum Gold Fund (ETF), there will be no investment management fee charged in the Quantum Gold Savings Fund, so that investors do not have to bear the expenses for both the schemes. Thus presenting investors with a truly cost efficient option.
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To invest in the Quantum Gold Savings Fund, investors can contact Quantum Asset Management Company directly, or speak to their own stock brokers.
Quantum Mutual Fund (QMF) was launched in 2006 as India’s first direct to investor mutual fund and currently manages 7 funds viz - Quantum Long Term Equity Fund, Quantum Tax Saving Fund, Quantum Liquid Fund, Quantum Gold ETF, Quantum Index ETF, Quantum Equity Fund of Funds and Quantum Gold Savings Fund.
Quantum Advisors, the Sponsor, currently manages and advises on India dedicated listed equity allocations for global endowments, pension funds and universities. Quantum was founded by Ajit Dayal in 1990.
Quantum Gold Savings Fund - An Open ended Fund of Fund Scheme. The investment objective of the scheme is to provide capital appreciation by predominantly investing in units of Quantum Gold Fund –Exchange Traded Fund. The performance of Scheme may differ from that of Quantum Gold Fund and the domestic prices of gold due to expenses and certain other factors. There can be no assurance or guarantee that the investment objective of the Scheme will be achieved. Asset Allocation Pattern : Units of Quantum Gold Fund (95% to 100%), Money Market instruments, Short-term Corporate debt securities, CBLO and units of Debt and Liquid Schemes of Mutual Funds (0% - 5%); Load Structure – Entry Load – Not Applicable, Exit Load - 1.5 % if redeemed or switch out on or before 1 year from the date of allotment of units; Terms of Issue and mode of sale and redemption of units - The Units are available at face value of Rs.10/- per unit during the NFO and thereafter at applicable NAV based price. The Scheme will offer for Subscription/Switch-in and Redemption, Switch-out of the units on every business days on an ongoing basis, on reopening of the Scheme. The redemption or repurchase proceeds will be dispatched to the unit holders within 10 business days from the date of redemption or repurchase. Investor benefits and general services offered: The NAV of the Scheme will be published on a daily basis by the Mutual fund at least in 2 newspapers and will also be uploaded on AMFI’s website www.amfiindia.com and at the companies’ website www.QuantumAMC.Com/www.QuantumMF.com. Minimum Application Amount: Rs. 500/- and in multiples of Rs. 1/- thereafter. Scheme Specific Risk Factors – All the risk associated with Quantum Gold Fund i.e. including performance of their underlying physical gold, asset class risk, passive investment risk, indirect taxation risk, default risk including possible loss of capital etc., will therefore be applicable in this Scheme. The Scheme’s NAV will react to the gold price movements and movements in the NAV of Quantum Gold Fund, The investors of the scheme will bear dual loads.
Investment Objective: Quantum Long-Term Equity Fund (QLTEF): To achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the BSE 200 Index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets. Quantum Liquid Fund (QLF) : To provide optimal returns with low to moderate levels of risk and high liquidity through judicious investments in money market and debt instruments. Quantum Gold Fund’s (QGF) : To generate returns that are in line with the performance of gold and gold related instruments, subject to tracking errors. However, investment in gold related instruments will be made if and when SEBI permits mutual funds to invest in gold related instruments. The Scheme is designed to provide returns that before expenses closely correspond to the re turns provided by gold. Quantum Index Fund (QIF): To invest in stocks of companies comprising the S & P CNX Nifty Index and endeavor to achieve returns equivalent to the Nifty by “Passive” Investment. The scheme will be managed by replicating the Index in the same weightage as in the S&P CNX Nifty Index with the intention of minimizing the performance differences between the scheme and the S&P CNX Nifty Index in capital terms, subject to market liquidity, costs of trading, management expenses and other factors which may cause tracking error. Quantum Tax Saving Fund (QTSF) : To achieve long term capital appreciation by investing primarily in shares of companies that will typically be included in the BSE 200 Index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets. Quantum Equity Fund of Funds (QEFOF) : To generate long-term capital appreciation by investing in a portfolio of open-ended diversified equity schemes of mutual funds registered with SEBI. There can be no assurance of positive returns from following the stated investment strategy. Entry Load: Not applicable. Exit Load: QLTEF : On repurchase/redemption/switch-out within 6 months of allotment- 4%, after 6 months but within 12 months of allotment- 3%, after 12 months but within 18 months of allotment - 2%, after 18 months but within 24 months of allotment - 1%, after 24 months of allotment - Nil. QLF: Nil; QGF: Nil in case of Authorized Participants and Eligible Investors. QIF: Nil; QTSF: Nil; QEFOF: On repurchase/redemption/switch-out within 1 year from the date of allotment-1.5%. Risk Factors: All Mutual Funds and securities investments are subject to market risks including uncertainty of dividend distributions and the NAV of the schemes may go up or down depending upon the factors and forces affecting the gold and securities markets and there is no assurance or guarantee that the objectives of the scheme will be achieved. Quantum Long-Term Equity Fund, Quantum Liquid Fund, Quantum Gold Fund, Quantum Index Fund, Quantum Tax Saving Fund, Quantum Equity Fund of Funds and Quantum Gold Savings Fund are the names of the schemes and do not in any manner indicate either the quality of the Schemes, their future prospects or returns. Past performance of the Sponsors and their affiliates / AMC / Mutual Fund and its Scheme(s) do not indicate the future performance of the Scheme of the Mutual Fund. Investors in the Schemes are not being offered any guaranteed / assured returns. The NAV of the units issued under the Schemes may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities. The NAV will inter-alia be exposed to Price / Interest Rate Risk and Credit Risk. The investors are advised to refer to the Scheme Information Documents of QGF and QIF for full text of the ‘Disclaimer Clause of NSE’.
Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882.Sponsors: 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 (AMC). The Sponsor, Trustee and the Investment Manager are incorporated under the Companies Act, 1956. The past performance of the Sponsor / AMC/ Fund has no bearing on the expected performance of the scheme. Mutual Funds investments are subject to market risks. Please read the Scheme Information Document (s) / Key Information Memorandum (s) / Statement of Additional Information / Addendums carefully before investing. Scheme Information Document(s) / Key Information Memorandum(s) / Statement of Additional Information can be obtained at any of our Investor Service Centers or at the office of the AMC :- 505, Regent Chambers, 5th Floor, Nariman Point, Mumbai – 400 021 or on AMC website www.QuantumAMC.Com / www.QuantumMF.com