Quantum AMC Starts Small Cap Fund NFO On 16 October
Quantum AMC has started a new fund offer (NFO) with Quantum Small Cap Fund. It opens for subscription on Monday, October 16 and closes on Friday, 27 October 2023.
It is an open-ended equity scheme predominantly investing in Small Cap Stocks. It will be co-managed by Chirag Mehta – Chief Investment Officer and Abhilasha Satale.
The scheme will be benchmarked against the S&P BSE 250 Small Cap total return index (TRI). Its investment objective is to generate capital appreciation by investing in Small Cap Stocks.
The scheme will have a direct and regular plan. The fund managers will allocate 65 to 100 per cent to small-cap companies' equity and equity-related instruments. The scheme investment philosophy include:
Chirag Mehta, Chief Investment Officer & Fund Manager, Quantum AMC said, “Our Small Cap Fund is meant for investors who are looking for long-term capital appreciation. In the long term, small-cap stocks have demonstrated the capability of giving good returns potential.
To ensure good returns for our customers, we will make investments in lesser-known, smaller businesses with growth prospects. Over a period of time, these companies increase their revenue and earnings, which can ensure good returns for our investors.”
He further added, “The biggest challenge in the small cap mutual fund space today is a large asset under management (AUM) size. Funds with large AUM tend to face liquidity issues if they end up owning a big part of a small-cap stock’s market capitalization. They may be compelled to have a long tail of stocks with unsubstantial weights. They may be forced to either sit on cash or to invest incremental inflows into mid or large-cap names, which is not what a small-cap fund’s objective is. The Quantum Small Cap Fund will limit its AUM size to an optimal level, which will enable it to hold a high-conviction, liquid portfolio of promising small cap businesses.”
Adding to it, IV Subramaniam, MD and Group Head- Equities, Quantum Advisors – Sponsor to Quantum Mutual Fund said, “Many of the new startups that have sprung up to solve many problems faced by the population could eventually list as small-cap companies and then eventually grow into sizable companies in the mid-cap or large-cap space."
