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Indian PSUs | wings of core activities
Public sectors play a crucial role in nation-building by contributing to various aspects of economic and social
development. They typically engage in 5 core activities
Returns*
MuM Since
Fund (in NAV 1 Month 2 Month 3 Month 4 Month 6 Month
Inception^
crores)
Fund BM Fund BM Fund BM Fund BM Fund BM Fund BM
quant Dynamic Asset
Allocation Fund 620 14.7971 10.48% 1.23% 20.33% 5.59% 31.05% 10.15% 26.25% 8.25% 31.11% 9.22% 62.44% 22.52%
(Allotment Date: Apr. 12, 2023)
quant Business Cycle Fund 1051 15.1119 7.53% 1.61% 12.78% 9.21% 26.40% 18.32% 24.88% 14.58% 35.85% 16.44% 84.15% 40.75%
(Allotment Date: May. 30, 2023)
quant Manufacturing Fund 437 13.8710 10.97% 1.97% 20.50% 8.69% 31.11% 19.64% 27.99% 14.87% N.A. 101.16% 41.19%
(Allotment Date: Aug. 14, 2023)
quant Teck Fund 281 11.7909 7.73% 3.77% 18.20% 11.38% 23.62% 19.57% 17.86% 15.30% N.A. 52.32% 39.07%
(Allotment Date: Sept. 11, 2023
quant Commodities Fund 168 10.9356 8.30% 2.81% N.A. 147.80% 46.87%
(Allotment Date: Dec. 27, 2023)
Note: Data as on February 01, ‘24 *Returns are of Regular Plan; ^Annualised Returns, MuM: money under management 4
performance of quant MF schemes | outperformance across all categories
quant MF
Schemes quant MF Ranking
Ranking Jensen’s
Scheme Outperformance Schemes Industry Industry Ranking Sortino (based
Sharpe ratio (based Alpha (in %)
AUM (in Returns (Mar Relative to Outperformance Ranking Ranking (based on ratio on
quant MF Schemes (category on (category
Crore) 24,2020-Feb Respective Relative to Nifty (3 years (5 years Sharpe (category Jensen’s
average) Sortino average)
01,2024) Benchmark Indices (Mar 24,2020- Returns) Returns) ratio) average) Alpha)
Ratio)
(Mar 24,2020-Feb Feb 01,2024)
01,2024)
quant Active Fund* 8110 415% 139% 237% No. 2 No. 1 1.15 (0.76) No. 1 1.55 (0.87) No. 1 12.70 (2.73) No. 1
quant Small Cap Fund* 15737 780% 356% 602% No. 1 No. 1 1.60 (1.01) No. 1 1.75 (1.05) No. 1 21.07 (7.05) No. 1
quant Tax Plan* 7210 482% 259% 304% No. 1 No. 1 1.35 (0.73) No. 1 1.65 (0.71) No. 1 17.69 (4.01) No. 1
quant
Infrastructure Fund*
1654 613% 327% 435% No. 1 No. 1 1.25 (0.78) No. 1 1.23 (1.01) No. 1 16.83 (9.25) No. 1
quant Mid Cap Fund* 4854 444% 108% 266% No. 1 No. 1 1.23 (0.79) No. 1 1.17 (0.66) No. 1 9.87 (0.87) No. 1
quant Flexi Cap Fund* 3575 466% 243% 288% No. 1 No. 1 1.26 (0.66) No. 1 1.41 (0.51) No. 1 16.61 (0.56) No. 1
quant Absolute Fund* 1672 284% 153% 106% No. 2 No. 1 1.23 (0.55) No. 1 1.37 (0.76) No. 1 15.87 (3.19) No. 1
quant
Multi Asset Fund*
1471 329% 185% 150% No. 1 No. 1 1.22 (0.57) No. 1 1.31 (0.59) No. 1 14.10 (4.10) No. 1
quant Large &
Mid Cap Fund*
1681 302% 45% 124% No. 1 No. 1 1.06 (0.80) No. 1 1.01 (0.81) No. 1 7.19 (5.05) No. 1
quant Focused Fund*
(large cap)
654 296% 73% 118% No. 1 No. 1 1.03 (0.76) No. 1 1.24 (0.86) No. 2 6.26 (2.01) No. 1
No. 1 No. 1
quant ESG Fund** 215 211% 128% 132% N/A N/A N/A N/A N/A N/A
(1 year) (2 years)
quant No. 1 No. 1
1618 122% 62% 73% N/A N/A N/A N/A N/A N/A
Quantamental Fund*** (1 year) (2 year)
No. 1
quant Value Fund**** 1121 82% 44% 54% N/A N/A N/A N/A N/A N/A N/A
(2 years)
No. 1
quant Large Cap Fund# 537 38% 14% 16% N/A N/A N/A N/A N/A N/A N/A
(1 year)
quant Dynamic Asset No. 1
620 50% 32% 28% N/A N/A N/A N/A N/A N/A N/A
Allocation Fund*** (6 Months)
quant Business Cycle No. 1
1051 53% 27% 36% N/A N/A N/A N/A N/A N/A N/A
Fund*** (6 Months)
No. 1
quant BFSI Fund*** 356 55% 50% 40% N/A N/A N/A N/A N/A N/A N/A
(6 Months)
No. 1
quant Healthcare Fund*** 236 33% 33% 23% N/A N/A N/A N/A N/A N/A N/A
© quant (6 Months)
*NAV for both Growth & IDCW options recorded as 01 Feb ’24 | AUM as on 01 Feb ‘24 | Risk Measures have been calculated using monthly returns for the last three years.**1st NAV 05 Nov 2020-quant ESG Fund;***1st NAV 03 May 2021-quant Quantamental
Fund;****1st NAV 30 Nov 2021-quant Value Fund;#1st NAV 11 Aug 2022-quant Large Cap Fund;***1st NAV 12 Apr 2023-quant Dynamic Asset Allocation Fund;***1st NAV 30 May 2023-quant Business Cycle Fund;***1st NAV 20 Jun 2023-quant BFSI Fund;***1st
NAV 17 Jul 2023-quant Healthcare Fund; | Source: AMFI ACE Equities quant Global Research (qGR); return ratios and ranking updated till 01 February ‘24 and risk-adjusted parameters till March 31 2023.
quant mutual | money under management (MuM)
MuM
Rs. 57,000 Crores+
---------------------------------
Folios*
59 Lacs+
© quant
*Total folios and MuM (Money under Management) data as on February 02, ’24 (approximately) 6
why PSU Fund now? | timing is the key
The core innovation behind the VLRT Framework is the synthesis of various dimensions to identify inflexion points, long
before the larger trend plays out and therefore at quant, we are inflexion point and cycles strategists, instead of
momentum chasers. The difference in looking for inflexion points is that it allows us to position ourselves at the most
opportune phases of the cyclical flow of markets
Through our Predictive Analytics platform, our Cycles Analytics framework works to identify cycles of various lengths and
amplitudes, across asset classes and the inter-linkages and overlaps of these multifarious cycles synthesized into the
business cycle. Few months ago, as we launched the ‘quant Business Cycle Fund,’ the objective was to provide investors
with a high risk appetite, a safe avenue through mutual funds to capitalise specifically on cycles
We are today at an important juncture, as the VLRT multi-dimensional Framework clearly points out that a medium term
bottoming of Risk Appetite is very near providing the impetus for a new business cycle and Liquidity Analytics are
supportive for past many months. The last time the multi-dimensional variables of the VLRT framework were coming
together to indicate such a turning point was in March-April 2020, post which there were strong resulting trends to the
downside and upside, respectively
The advantage of taking a position in inflexion points is that the risk-reward ratio is the most favorable, which makes a
significant difference to risk-adjusted performance. At the confluence of various cycles, the mathematics of market
patterns starts working in favor of dynamic money managers such as us
As per the VLRT Framework, specifically the peaking of Volatility Expansion Phase 2018-23, and now as 2023 has passed,
this phase will be remembered as the culmination of several cycles including the war, and financial crisis cycles and 2024
will be less volatile compared to past five years
To ride this wave, and navigate through the resulting business cycle, we have launched series of thematic funds, which are
strongly correlated with cyclical upturns; quant PSU Fund is one of the best decadal opportunities to capitalise on the
India growth story. Our Predictive Analytics is endorsing a structural uptrend for PSU theme and despite the recent rally,
© quant
PSU stocks are yet to reach the admired territory – our Perception Analytics is also endorsing the same
7
Indian PSUs | heavyweights in India’s nation building
The majority of the total shareholding in PSUs (>50%) is controlled by either the State or Central Government
Central and State PSUs have played an essential part in India’s early economic and social growth & modernization
Before the advent of private sector, the public sector played a significant role in capital formation and developing infrastructure
that has also helped to leverage private investment
© quant sector Investment largely contributed to industrial capacity; particularly heavy industry, logistics and transport
Public
infrastructure, and all manner of public utilities for the common good 8
Indian PSUs | public investment – shared responsibility towards GDP growth
Data released by the Controller and Auditor General for 23 States shows that their capital expenditure has jumped by over 74%
in Q1 of FY24, compared to the corresponding period of the previous year
Out of ₹1.3 lakh crores interest-free loans for States for FY24, a sum of ₹600 billion has been sanctioned so far. Of this, ₹300
billion has been disbursed
54 large CPSEs and 5 departmental arms have collectively met 35% of their annual capex target of ₹7.3 lakh crore in Q1 of FY24
Key sectors like Petroleum (Refinery & Marketing), Coal, Crude Oil, Steel and Electricity (Power Generation, Transmission and
Distribution)
© quant have contributed immensely to the country’s GDP growth
Source: Department of Economic Affairs (DEA), quant Global research (qGR) 9
Indian PSUs | gearing for ‘Amrit Kaal’
10
Indian PSUs | scripting investment growth prospects
Transmission: MoP has planned transmission line network worth Defence: Indigenisation push by MoD is generating a potential worth
INR 2.45tn before renewable energy of total capacity of 500 GW more than INR 5tn over the next five years, resulting into an annual
capacity gets commissioned, which can translate into a capex capex opportunity of INR 1.0tn
opportunity of over INR 200bn per year. Water: INR 2.4tn has to be expended over the next two years in the Jal
Railways: INR 17tn worth of investments are needed to ramp up Jeevan Mission, which will result in an annual capex of over INR 1.0tn
high speed rail network and increase capacity of coaches and PLI led capex: Across various sectors, the PLI initiative of GoI can result
locomotives,
© quant resulting into a capex opportunity of more than INR in a capex of nearly INR 5tn over the next five years, amounting to an
1.5tn per annum incremental capex opportunity of INR 1.0tn per year 13
growing trend | major reform in the last decade – PPP model
100% FDI
Enhanced Domestic and More funding
in key sectors
manufacturing foreign in defence and
(automatic
and exports investment space
route)
© quant
14
quant PSU fund | covers broad range of market opportunities
Financial Energy
Services
Defence Utilities
Agriculture Manufacturing
Metals &
Chemicals
Mining
Telecom Engineering
Textiles
The scheme will primarily invest in PSUs which benefit from increased capex and reforms and are poised to become stronger and more dynamic players across
various sectors in the coming decades. It also seeks to invest and leverage the potential value of PSU stocks unlocked through disinvestment or divestment, and
© quant
benefit from their significant contribution towards the aspiration of making India the world’s third-largest economy
The above sector list is only indicative and not exhaustive. There are many sectors where PSUs have presence offering truly diversified growth opportunities 15
quant PSU fund | positioning & strategy
Fund Positioning
To benefit from Indian PSUs by unlocking opportunities coming from
increased capex and reforms in critical economy building sectors
Decadal opportunity across the cap curve for superior risk-adjusted
returns, being suitable for investors with a long term horizon
Fund Strategy
The scheme will tilt exposure to select emerging themes with PSU
dominance and concentrate mostly on 6-8 focused opportunities most
of the time, that are expected to be on the cusp of a growth cycle, as
evaluated through macro economic analytics
The scheme can invest 80-100% in equity and related instruments of
both Central & State PSUs from various sectors; remaining 0-20% can
be invested in other sectors, exploiting a range of investment
opportunities within the concept of a focused portfolio
The business cycle approach is to identify sectors through our
Predictive Analytics model, which provides a multi-dimensional
framework of sector allocations across business cycles
Through Money Flow Analytics, quant money managers will invest in
sectors and companies that are expected to benefit from the given
phase of the economy
Our time trusted risk-mitigation VLRT Framework and Predictive
Analytics indicators will be used to dynamically manage the known
© quant
risks and opportunities across the portfolio
16
quant PSU fund | reasons to buy
Stability & Reliability
Investing in PSUs offer a relative sense of stability and reliability. Owing to their government ownership and support,
the backing of the government provides a certain level of assurance, making them an attractive option, especially
during times of market uncertainty
Dividend Income
PSU stocks are attractive due to their consistent dividend distribution history. Many PSUs have a tradition of sharing a
portion of their profits with investors. That, in turn, provides a regular income stream and potentially enhances the
overall returns on investment.
Diversification Benefit
Diversification is a cornerstone of a well-balanced investment portfolio. By adding PSU stocks to your investment mix,
you are diversifying your portfolio beyond privately-owned companies. This diversification can help mitigate risks
associated with sector-specific downturns, providing a more resilient portfolio overall
© quant
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VLRT framework | the 4 dimensions in motion | dynamic risk mitigation
via effective market timing
© quant
20
quant | money managers
© quant
21
quant | money managers
© quant
22
Scheme Details
The objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and
Investment Objective equity related securities of Public Sector Undertakings (PSUs). There is no assurance that the investment objective of
the Scheme will be realized.
This product is suitable for investors who are seeking*: Scheme Riskometer Benchmark Riskometer
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