Whalesbook
Quant Mutual Fund has launched a new Specialised Investment Fund (SIF) called the Quant Equity Ex-Top 100 Long-Short Fund. This open-ended scheme is designed to achieve long-term capital appreciation by investing primarily in equity and related instruments of companies outside the top 100 by market capitalization, targeting mid and small-cap segments.
The fund will allocate 65% to 100% of its assets to these smaller companies, with up to 35% permitted in top 100 companies. It also allows for investments up to 35% in debt and money market instruments, and up to 20% in REITs and InvITs.
A key feature is its ability to use long-short strategies by taking short positions up to 25% of the portfolio through derivatives. This strategy aims to manage downside risk and potentially enhance overall returns.
The New Fund Offer (NFO) is currently open and will close on November 7. The minimum investment required is ₹10 lakh, with Systematic Investment Plans starting from ₹10,000. An exit load of 1% applies for redemptions within 15 days.
The scheme will be benchmarked against the Nifty 500 Total Return Index (TRI). Quant Mutual Fund positions this fund for investors seeking exposure to mid- and small-cap stocks with an active hedging strategy.
About SIFs:
Specialised Investment Funds (SIFs) are a new product category introduced by SEBI. They offer more tailored and flexible investment strategies compared to traditional mutual funds, but with lower entry barriers than Portfolio Management Services (PMS) or Alternative Investment Funds (AIFs), catering to sophisticated retail and high-net-worth investors.
Impact:
This fund launch provides investors with a structured way to access mid and small-cap companies while incorporating risk mitigation through hedging. It could attract capital into these market segments and offer a differentiated investment option. The inclusion of a long-short strategy can help manage market volatility. Rating: 7/10.