Quantum Mutual Fund, India's 1st direct-to-investor mutual fund is presently in talks with the National Stock Exchange (NSE) to explore the possibilities of listing its funds on the newly launched Mutual Fund Service System (MFSS). The fund house is also evaluating a similar system to be launched by the Bombay Stock Exchange (BSE) sometime soon.
The MFSS platform which was launched on November 30, 2009 is a gateway where investors can buy and sell mutual fund schemes online, and the payments for which will be directly debited from their bank accounts. The units purchased or sold will be credited or debited to the investors’ demat account. It is just like buying shares listed on the NSE. Those who do not have demat accounts will have to apply via the exchange registered stock brokers.
Quantum Mutual Fund is India’s 29th mutual fund house and - since its inception - has offered its products directly to investors, steering away from the traditional distribution channels.
Commenting on the recent developments of distribution of mutual fund products, Ajit Dayal, Chairman and President, Quantum Asset Management Company said, "This initiative undertaken by SEBI and the NSE to provide millions of investors spread across 1,500 towns and cities the ability to transact in mutual funds via the 200,000 terminals is a giant step for increasing local participation in India’s growing stock markets. Our argument and refusal to participate in the previous regime of an opaque distribution system which continuously compromised the interests of the investors stands vindicated. We are glad to explore the possibility of launching Quantum Mutual Fund on this new platform which allows investors to buy mutual funds they wish to invest in, rather than be hostage to an era where they were made to purchase schemes that were blindly sold to them.”
In addition to being the only fund house in the country that refused to pay any commissions in the opaque distribution system, Quantum Mutual Fund has also kept its product offering simple. Quantum Mutual Fund offers investors 6 schemes covering the 3 broad asset classes of stocks, fixed income, and gold. The 4 equity products are Quantum Long Term Equity Fund, Quantum Tax Saver Fund, Quantum Index ETF, and Quantum Equity Fund of Funds. Other than the Quantum Liquid Fund, which is the fixed income fund, there is the Quantum Gold ETF which is supported by the e-letter, ‘The Golden Truth’.
Speaking on the challenges that the MFSS might face, Ajit said, “There is still room for caution. The good news is that the cost of buying a mutual fund may have declined by 90% - investors will now pay a stipulated brokerage, versus an average cost of 2.5%to 4.0% under the old regime of distributors and agents. But investors will still need to know which mutual funds to buy; and which mutual funds to stay away from."
About Quantum Mutual Fund – www.QuantumAMC.com
Quantum Mutual Fund (QMF) was launched in 2006 as India’s first direct to investor mutual fund and currently manages 6 funds viz - Quantum Long Term Equity Fund, Quantum Tax Saver Fund, Quantum Liquid Fund, Quantum Gold ETF, Quantum Index ETF, and Quantum Equity Fund of Funds.
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.
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.
Disclaimer: Mutual Fund Investments are subject to Market Risk. Please read the Scheme Information Document carefully before investing.
