Quant Mutual Fund Filed Draft with SEBI for 2 New Schemes

Quant Mutual Fund has filed draft documents with SEBI for 2 open-ended long-short strategies, the qsif Equity Long-Short Fund and the qsif Equity Ex-Top 100 Long-Short Fund. The filings were made under the Specialised Investment Fund (SIF) framework.

Investment Objectives

Both schemes seek long-term capital appreciation through equity investments combined with limited short exposure using derivatives. The Equity Long-Short Fund will invest in a diversified set of listed equities, while the Ex-Top 100 variant will focus on companies outside the top 100 by market capitalisation.

Asset Allocation

The Equity Long-Short Fund will keep 80-100% of assets in equity, with up to 20% in debt and money market instruments. Short exposures through derivatives are capped at 25%. The Ex-Top 100 Fund allocates 65-100% in non-top 100 stocks, with up to 35% permitted in top 100 companies, debt, and money market instruments. Both funds can also invest up to 20% in REITs and InvITs.

Read more: NFO Alert: Zerodha Mutual Fund Launches Nifty Smallcap 100 ETF!

Benchmark and Risk Level

Each fund will use the NIFTY 500 Total Return Index (TRI) as its benchmark, covering large, mid, and small-cap segments of the market. The schemes fall under AMFI Risk Band Level 5, which is the highest risk category, reflecting their use of derivatives and equity focus.

Subscription and Redemption Terms

During the New Fund Offer (NFO), units will be priced at ₹10 per unit. The minimum application amount is ₹10 lakh, while accredited investors may apply from ₹1 lakh. For SIPs, withdrawals, and transfers, the minimum amount is ₹10,000. Exit load is set at 1% for redemptions within 15 days, with no charge thereafter.

Conclusion

Both schemes remain subject to SEBI approval. Once cleared, they will open for subscription and repurchase on all business days at NAV-based prices.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.