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NFO alert: Quant mutual fund launches Quant commodities fund

11 December 20234 mins read by Angel One
Quant commodities fund, focusing on equity investments in forward-thinking commodities and equities related to commodities for long-term gains.
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Quantum Mutual Fund launched a new open-ended equity scheme named “Quant Commodities Fund” on December 8, 2023, through NFO, to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of companies engaged in commodity and commodity-related sectors. This scheme (NFO) has an entry load of Nil and an exit load of 1% for redemptions or switch-outs within 15 days from the date of allotment, irrespective of the investment amount. The minimum subscription amount is Rs 5,000. The offer closes on December 22, 2023.

The objective of the scheme is to generate long-term capital appreciation by creating a portfolio that is invested predominantly in Equity and Equity related securities of companies engaged in commodity and commodity-related sectors. There is no assurance that the investment objective of the Scheme will be realised.

The risk-o-meter for this fund shows a very high-risk mark where the fund is considering its benchmark as Nifty Commodities TRI.

Asset allocation

Asset Class Normal Allocation (% of net assets) Risk Profile
Minimum Maximum
Equity and equity related instruments of companies engaged in commodity and commodity related sectors 80 100 Very High
Equity and equity related instruments other than companies engaged in commodity and commodity related sectors 0 20 Very High
Debt, Units of debt Mutual Fund schemes and money market instruments 0 20 Low to Medium
Gold ETF, Silver ETF & any other asset class in commodities as permissible by SEBI from time to time (excluding commodity derivatives) 0 20 Meduim to High
Exchange Traded Commodity Derivatives (ETCDs) & any other asset class in commodities as may be permitted by SEBI from time to time (subject to applicable SEBI limits) 0 20 Meduim to High
Foreign Equity and Equity related instruments and Overseas ETFs 0 20 Very High
Units issued by issued by REITs & InvITs 0 10 Very High

Fund managers

Ankit Pande – Age: 37 years, Qualification: CFA, MBA, Experience of 9 years in Indian equities

Sanjeev Sharma – Age: 44 years, Qualification: PGDBA(Fin.), M.com and Certified TM (Treasury & Forex Risk), 13 years of experience in the financial market

Vasav Sahgal – 28 years, Qualification: B.com & CFA, four and a half years of experience in Equity and Fixed Income research, Portfolio Management, Data Analytics and Python Programming.

Varun Pattani – 26 years, Qualification: CA, experience in tracking Indian equities across sectors

Peer Fund

Here is one similar fund to understand the performance of the commodities fund. As this is an NFO, there is no historical data for the scheme. Let’s see the performance of similar funds.

ICICI Prudential Commodities Fund – historical returns

Period Absolute Returns Annualised Returns Category Average
1 Year 21.31% 21.31% 26.02%
2 Year 45.77% 20.73% 16.10%
3 Year 153.31% 36.32% 22.92%
Since Inception 256.40% 35.85% 17.84%

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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