Quant Mutual Fund Files Draft for Equity Savings Scheme

Quant Mutual Fund has proposed a new offering titled the Quant Equity Savings Fund, an open-ended hybrid scheme. The fund will invest in a mix of equity, equity arbitrage, and debt instruments. It aims to provide income through arbitrage in cash and derivatives markets and capital appreciation through unhedged equity exposure.

Asset Allocation and Instruments

Under normal market conditions, the scheme plans to allocate 65-90% to equity and related instruments, with 25-80% in hedged equity and 10-40% in unhedged equity. Debt and money market instruments will comprise 10-35% of the portfolio. Additional exposures may include up to 10% each in exchange-traded commodity derivatives, REITs, and InvITs. The scheme may also invest up to 5% in unrated debt instruments, subject to internal approval.

Investment Strategy

The fund will follow an active investment strategy, combining equity positions with derivatives for arbitrage and hedging. Strategies include cash-future arbitrage, index arbitrage, and covered call writing. The fund also has the flexibility to operate defensively by shifting allocations based on market conditions.

Offer Details

Units will be offered at ₹10 each during the New Fund Offer (NFO) period. The NFO opening and closing dates are yet to be announced. Minimum application amount is ₹5,000 with subsequent investments in multiples of ₹1. Exit load is 1% if redeemed within 15 days of allotment; no load applies thereafter.

Plans and Options

Both Direct and Regular Plans will be available, each offering Growth and IDCW options. The default allocation will be to Growth if no option is selected. IDCW payouts can be reinvested or withdrawn, with reinvestment as the default.

Read more: Upcoming NFOs This Week: 3 New Mutual Fund Schemes Opening From June 23, 2025!

Benchmark and Management

The scheme will track the Nifty Equity Savings TRI as its benchmark. It will be managed by a team of 5: Sanjeev Sharma, Harshvardhan Bharatia, Ankit Pande, Varun Pattani, and Ayusha Kumbhat.

Conclusion

Quant Equity Savings Fund has been filed with SEBI as a new hybrid offering. It is currently awaiting regulatory approval and further announcements on the launch schedule.

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.