Investment Objective
Quant Small Cap Fund aims to generate long term capital appreciation & growth opportunities by investing in a portfolio of small cap companies.
Investment Strategies
- Quant Small Cap Fund invests at least 65% in equity and related instruments of small cap companies and 35% in the top 250 stocks by market capitalization (large & midcaps) across industries to optimise risk-return payoffs.
- The fund invests in small cap companies selling at a significant discount to their intrinsic value.
- The fund managers consider the company’s ability to earn return on capital invested, generate free cash flow over the long term and allocate capital efficiently.
- The fund’s investment decisions are based on the VLRT (Valuation, Liquidity, Risk Appetite & Time) Framework and Predictive Analytics tools of the fund house, which allow it to manage known risks and identify opportunities dynamically.
- The fund actively manages its portfolio according to the changing market conditions to effectively navigate through market cycles and generate consistent returns.
- The fund invests in under-researched and under-owned companies, which creates an opportunity to find hidden growth potential.
- The fund invests in small and promising companies at an early stage of growth and having the potential to outperform broader markets.
- The fund follows a sector agnostic investment approach and takes an unconstrained stock selection process, i.e., stock picking is flexible, allowing the fund to invest in opportunities having higher return potential.
Who Should Invest
- Quant Small Cap Fund is apt for long-term investors, i.e., 5 years and above.
- Investors having a higher risk appetite and looking to invest in small-cap stocks of relatively lesser-known companies with competitive advantages and strong growth potential.
- Those who want to participate in the rally of small cap stocks having the highest growth potential during bull phases.
- Investors looking to diversify their portfolios by adding small yet promising niche businesses with strong fundamentals and significant long-term growth potential.
Frequently Asked Questions
What is the risk level of the Quant Small Cap Fund?
As per the factsheet published by its fund house, Quant Small Cap Fund is considered to carry ‘Very High Risk’ for its investors.
Is there any lock-in period in the Quant Small Cap Fund?
Quant Small Cap Fund has no lock-in period. Investors are free to redeem their investments from the fund as per their requirements.
What type of mutual fund is the Quant Small Cap Fund?
Quant Small Cap Fund is an open ended equity mutual fund scheme belonging to the small cap fund category.
Is the Quant Small Cap Fund open-ended or close-ended?
Quant Small Cap Fund is an open-ended equity mutual fund scheme.
What is the benchmark index for this Quant Small Cap Fund?
The benchmark index for the Quant Small Cap Fund is Nifty Small Cap 250 TRI.