Quantum mutual fund?

What are the prospects of this AMC in India?Are they good?

While Quantum mutual fund may not have a track record as a public mutual fund, they have valuable experience in servicing private investors for a long time. Personalfn.com and Equitymaster.com are the two sister concerns from the same management. Just go through some of their articles to understand their approach.

This mutual fund company is quite different from others. This fund house has a long term approach for their investment and stay invested in some of their investments while other mutual funds have the approach of shifting based on trends (like large cap, mid cap, sector etc.). Also this fund house goes for value based, bottom-up investment and mostly ignores the growth based top-down investment model. While other fund houses talk in the same manner, I don鈥檛 see them fully adopting it. If they had, during the recent melt-down, they could have stayed in cash instead of staying invested. But this fund house did that even though their NFO netted a paltry figure of 10 crores.

While Fidelity came in with exit-loads for short term redemption, Quantum a startup fund house unheard across the country also adopted the same approach. It did not go along the way others did with huge advertisements and was content with a NFO collection of 10 crores. Even this amount, it did not invest fully even after few months and was waiting for corrections in the market. It avoided the distributors, which all other fund houses religiously go through (except Benchmark I think) and went for online investing thus directly targeting the investors bypassing the distributors.

As per its business plan, it has already stated that it will not go for sector funds and thematic funds. But I don鈥檛 know how long it can stick to this approach and let us wait and see.

While the fund house is yet to prove it credentials, so far from what I have read about this fund house, I would rate this fund along with Aberdeen, which has value based buy and hold strategy and proved it over a long period compared to its peers.

BTW, I have not invested Quantum funds, as I would like to wait and see how they perform over the next two to three years.

Good luck.

The Quantum equity funds do not have any track record. They are too new. 4 months old. They may be good or they may be not so good. Only time will tell.

You will be much better investing in a fund that you can find out how well it has done compared to other such funds in its catagory.