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Quantum Mutual Fund to launch a new ETF Fund of Fund NFO: Quantum Nifty 50 ETF Fund of Fund

Quantum Mutual Fund is launching a new Fund of Fund (FoF), Quantum Nifty 50 ETF Fund of Fund, that invests in units of the Quantum Nifty 50 ETF.

The New Fund Offer (NFO) period for the Quantum Nifty 50 ETF Fund of Fund is from July 18th 2022 to August 1st 2022.

Objective

The Quantum Nifty 50 ETF Fund of Fund’s investment objective is to provide capital appreciation by investing in units of Quantum Nifty 50 ETF – Replicating / Tracking Nifty 50 Index. However, there is no assurance or guarantee that the investment objective of the Quantum Nifty 50 ETF Fund of Fund will be achieved.

Fund Details

Quantum Nifty 50 ETF Fund of FundDetails
NFO Opening DateJuly 18th 2022
NFO Closing DateAugust 1st 2022
Re-opens for Continuous Sale and RepurchaseAugust 10th 2022
Type of FundOpen-ended equity scheme (Fund of Fund)
Fund ManagerMr Hitendra Parekh
Minimum Investment AmountINR 500
Minimum Additional Purchase AmountINR 500
Exit LoadNIL
SuitabilityVery High
BenchmarkNIFTY 50 TRI
Plans and OptionsRegular Plan & Direct Plan with Growth Option.

NOTE:

All additional investment amounts should be multiple of INR 1/-

Who Can Invest?

Quantum Nifty 50 ETF Fund of Fund provides exposure to the Nifty 50 Index. It is a passive fund that gives exposure to Quantum AMC’s tried and tested 12:20:80 Asset Allocation Strategy. Quantum Nifty 50 ETF Fund of Fund offers the efficiency of an ETF with the convenience of an Index Fund. The underlying fund, i.e., the Quantum Nifty 50 ETF, replicates India’s Nifty 50 Index and has a strong proven track record of 14 years.

Since it is a pure equity scheme, investors should be mindful of the risk and volatility. The fund is aimed at investors looking to invest in passive funds.

Since the portfolio invests in units of an ETF that track large-cap companies’ equities, a high-risk tolerance level is required for investing in the scheme. Investors looking for exposure to investments across the market leaders (top 50 companies by market cap) can consider Quantum Nifty 50 ETF Fund of Fund. Moreover, funds like the Quantum Nifty 50 ETF Fund of Fund are more aligned to long-term financial goals. Furthermore, the suitable investment horizon for Quantum Nifty 50 ETF Fund is 5+ years.

Popular Funds by Quantum Mutual Funds

Fund Manager

Mr Hitendra Parekh

Mr Hitendra Parekh has more than three decades of experience in the financial services industry. Prior to working with Quantum, he was with Unit Trust of India and UTI Securities Ltd. Mr Hitendra Parekh holds a B.Com and also a Masters in Financial Management degree from Mumbai University.

Asset Allocation

Following is the indicative asset allocation of the Quantum Nifty 50 ETF Fund of Fund.

Types of InstrumentsIndicative Allocation MinimumIndicative Allocation MaximumRisk Profile
Units of Quantum Nifty 50 ETF95%100%High
Government Securities & Treasury Bill Maturity up to 91 days, Tri-Party Repo and Liquid Schemes of Mutual Funds05%Low

Concluding Remarks

Quantum Nifty 50 ETF Fund of Fund that invests in the unit of Quantum Nifty 50 ETF. The Quantum Nifty 50 ETF has a 14 years track record in tracking the underlying Nifty 50 index.

Quantum Nifty 50 ETF Fund of Fund is aimed at investors who understand and are willing to take on the risk associated with passive mutual funds. Furthermore, it is a pure equity scheme, and a long-term investment horizon is advisable. Moreover, since the Quantum Nifty 50 ETF Fund of Fund does not guarantee returns, it is wise to monitor the investments closely.

Frequently Asked Questions

How Can I Invest in the Quantum Nifty 50 ETF Fund of Fund NFO?

You can invest in the Quantum Nifty 50 ETF Fund of Fund NFO through any of the following methods:
Offline: By filling out the Quantum Nifty 50 ETF Fund of Fund NFO application and submitting it along with all documents and cheques to the nearest Investor Service Center of CAMS or Quantum mutual fund office.
Online:
1. Quantum Mutual Fund Website
2. Online FinTech platforms and mutual fund platforms
3. Through demat account
4. Through a mutual fund distributor or agent

Is Quantum Nifty 50 ETF Fund of Fund NFO risky?

According to the riskometer, it is a very high-risk investment. Quantum Nifty 50 ETF Fund of Fund is a pure equity mutual fund that invests in Quantum Nifty 50 ETF units. Thus, the scheme falls under the very high-risk category. Thus, while investing, you should be well aware of the associated risks.

Is there a lock-in period for Quantum Nifty 50 ETF Fund of Fund?

Quantum Nifty 50 ETF Fund of Fund doesn’t have a lock-in period. Mutual fund units can be bought and sold easily.