Quant Mutual Fund Filed qsif Sector Rotation Long-Short Draft with SEBI

Quant Mutual Fund has filed the draft of its new specialised investment scheme, the qsif Sector Rotation Long-Short Fund, with the Securities and Exchange Board of India (SEBI). The fund seeks to deliver long-term capital growth through focused investments in up to 4 sectors with selective short exposure using derivatives. 

Managed by Quant Money Managers Limited and overseen by Quant Capital Trustee Limited, the scheme aims to combine sector rotation with tactical hedging to enhance returns.

Fund Objective and Strategy

The qsif Sector Rotation Long-Short Fund is designed to achieve capital appreciation by investing primarily in equity and equity-related instruments within 4 high-potential sectors. It allows limited short exposure through derivatives to capitalise on sector-specific downturns. 

Benchmarked against the NIFTY 500 Total Return Index (TRI), the fund carries a Risk Band Level 5, the highest risk category. The investment philosophy focuses on blending long positions in promising sectors with tactical shorts to optimise risk-adjusted returns.

Asset Allocation and Derivative Exposure

The fund will allocate 80-100% in equities from a maximum of 4 sectors, 0-20% in debt and money market instruments, and 0-20% in REITs and InVITs. It may take long derivative exposure up to 50% and unhedged short exposure up to 25% of net assets. 

Short exposure applies at the sector level, meaning if the fund shorts a sector like automobiles, all such holdings will be short positions. The strategy includes tools like short futures, synthetic shorts, long puts, bear spreads, and ratio put spreads to manage downside risks and rebalance efficiently.

Read More:Quant Mutual Fund Launches Equity Ex-Top 100 Long Short Fund SIF Targeting Mid and Small Cap Growth!

Investment Structure and Minimums

The NFO will be offered at ₹10 per unit with a minimum investment of ₹10,00,000 (₹10 lakh), and in multiples of ₹1 thereafter. Accredited investors can participate with a minimum of ₹1,00,000 (₹1 lakh). The fund offers Regular and Direct Plans with both Growth and IDCW options, available with payout and reinvestment features.

Fee and Redemption Terms

The maximum Total Expense Ratio (TER) is capped at 2.25% for assets up to ₹500 crore, gradually decreasing to 1.05% beyond ₹40,000 crore. An exit load of 1% applies for redemptions or switches within 15 days from the allotment date, with no exit load thereafter. 

The fund offers daily liquidity, and redemption proceeds are typically processed within 3 working days. SIP, SWP, and STP facilities are also available, with a minimum of ₹10,000 and 6 instalments.

Fund Management Team

The fund is led by seasoned professionals: Sandeep Tandon (CIO with over 33 years of experience), Lokesh Garg (former UBS and Credit Suisse executive), Ankit Pande (CFA, award-winning stock picker), Sameer Kate (ex-Investec and Kotak), and Sanjeev Sharma (treasury and derivatives specialist). Their collective expertise covers derivatives, equity, and risk management across domestic and global markets.

Risks and Compliance

The fund carries high market and sector concentration risks due to exposure across only 4 sectors. Other risks include derivative counterparty, liquidity, credit, and interest rate risks. As per SEBI (Mutual Funds) Regulations, 1996, the fund’s draft was filed on October 30, 2025, along with a due diligence certificate from the AMC. The NFO launch date will be announced following SEBI approval.

Conclusion

The qsif Sector Rotation Long-Short Fund represents an innovative strategy by quant Mutual Fund, aiming to combine focused sectoral investing with disciplined derivative risk management. By tactically rotating between sectors and managing downside risks, the fund seeks to deliver superior long-term returns within a controlled risk framework.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the Mutual Funds market are subject to market risks. Read all the related documents carefully before investing.