Top MFs: Quant Small Cap Fund

Objective

Quant Small Cap Fund is a Small Cap mutual fund scheme from Quant Mutual Fund. The scheme seeks to generate capital appreciation by investing in a well-diversified portfolio of small cap companies.

Fund Highlights

This fund has been in existence for 9 yrs, having been launched on January 2013.

Quant Small Cap Fund has Rs 1,375 Crores worth of assets under management (AUM) as on December 2021 and is small fund of its category.

The fund has an expense ratio of 0.56%, which is less than what most other Small Cap funds charge.

It is benchmarked against NIFTY Smallcap 250 Total Return Index.

The expense ratio of the fund is 0.56% for Direct plan as on Oct 31, 2021.

Quant Small Cap Fund attract an Exit Load of 1% if redeemed within 1 year"

Minimum investment required is Rs 5000 and minimum additional investment is Rs 1000. Minimum SIP investment is Rs 1000.

Returns

Quant Small Cap Fund Direct Plan-Growth returns of last 1-year are 91.00%. Since launch, it has delivered 17.33% average annual returns. The fund has doubled the money invested in it every 2 yrs.

Its trailing returns over different time periods are: 96.43% (1yr), 36.3% (3yr), 21.63% (5yr) and 16.36% (since launch). Whereas, Category returns for the same time duration are: 64.03% (1yr), 25.49% (3yr) and 18.29% (5yr).

Sector and stock wise exposure

The fund has the majority of its money invested in Construction, FMCG, Healthcare, Financial, Chemicals sectors. It has taken less exposure in Construction, FMCG sectors compared to other funds in the category.

The fund's top 5 holdings are in ITC Ltd., Indiabulls Real Estate Ltd., Arvind Ltd., Himachal Futuristic Communications Ltd., IRB Infrastructure Developers Ltd.

Asset Allocation & Portfolio Composition

1. The asset allocation of the fund comprises around 98.56% in equities, 0.0% in debts and 1.44% in cash & cash equivalents.

2. While the top 10 equity holdings constitute around 41.82% of the assets, the top 3 sectors constitute around 50.42% of the assets.

3. The fund largely follows a Growth oriented style of investing and invests across market capitalisations - around 7.93% in giant & large cap companies, 20.72% in mid cap and 70.58% in small cap companies.

Tax Implications

1. Gains are taxed at a rate of 15% (Short-term Capital Gain Tax - STCG) if units are redeemed within 1 year of investment.

2. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.

3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long-term Capital Gain Tax - LTCG).

4. For Dividend Distribution Tax, the dividend income from this fund will get added to the income of an investor and taxed according to his/her respective tax slabs.

5. Also, for dividend income in excess of Rs 5,000 in a financial year; the fund house shall deduct a TDS of 10% on such income.

Manager

The Quant Small Cap Fund - Direct Plan is managed by Ankit A Pande (Since May 11, 2020).

Expert Comment

This is a fund that invests in smaller companies. Compared to those that invest in larger companies, such funds tend to fall more when stock prices fall. So while you can expect higher returns in the long term, there will be more severe ups and downs along the way. Like for all equity funds, you must invest only through the SIP route

The scheme's ability to deliver returns consistently is in-line with most funds of its category. Its ability to control losses in a falling market is high.