From Real Estate to Pharma: Where Quant Small Cap Fund is placing new bets

Quant Small Cap Fund added five new stocks to its portfolio in July 2025, signaling fresh investment bets. Here's what investors need to know about these picks.

Quant Small Cap Fund — now one of India’s largest small-cap mutual funds with nearly Rs 30,000 crore in assets — made some noteworthy portfolio moves in July. 

 

What’s New in the Portfolio

 

Five New Entrants:

 

Marathon Nextgen Realty (8.13% stake, 1.32% of the fund)

 

Aditya Birla Lifestyle Brands (1.57%)

 

Capri Global Capital (2.95%)

 

Gland Pharma (0.38%)

 

Anthem Biosciences (0.66%)

 

Increased Exposure:

 

Jio Financial Services — raised from 0.88% to 0.95%, now 6.76% of the fund

 

Anand Rathi Wealth — raised from 2.68% to 3.10%, now 2.3% of the fund

 

Cutbacks and exits

Exited – Chambal Fertilisers and Chemicals.

 

Reduced – HP Adhesivesand Onesource Specialty Pharma

 

Why It Matters for Investors

 

Impressive Track Record: Over five years, a lump sum of ₹1 lakh grown to ₹6.7 lakh (7× return), and a ₹10,000 monthly SIP would now be worth ₹11.4 lakh. That’s an annualized return of 37.21%.

 

"Sure, the past year has been rough, but over the last five years the fund has delivered an annualised return of 37.21 per cent, enough to turn a lump sum investment of Rs 1 lakh into around Rs 6.7 lakh. Yes, that’s a 7x jump in just five years. Meanwhile, a Rs 10,000-a-month SIP would have grown to Rs 11.4 lakh in the same period.

 

The secret sauce? VLRT. Instead of relying on gut feeling, this four-star-rated fund uses a data-driven approach called VLRT," explained Agnisheik Chatterji of Value Research.

 

Dynamic Portfolio Strategy (VLRT):

 

Valuations: Finds underpriced opportunities

 

Liquidity: Tracks where money is flowing

 

Risk Appetite: Gauges the investor mood

 

Timing: Acts when all align

This flexible approach lets the fund switch 70–100% of its holdings annually.

 

"This strategy allows Quant Small Cap to chase high-growth opportunities quickly, and move out just as fast when momentum fades.

 

As a result, the fund changes around 70 per cent of its portfolio every year. In some years, that’s been over 100 per cent, meaning it’s replaced every stock in its portfolio more than once in 12 months," added Chatterji.

 

What You Should Consider

 

Volatility is High: The fund’s standard deviation is around 17.2%, slightly above the 16.96% category average. In the past year, it dropped 6%, more than peers.

 

"Because the fund hunts momentum, it can be volatile, and recent months have been proof, falling way harder (-6 per cent returns) than its average peer (-2.2 per cent) in the last 12 months. Additionally, its standard deviation (a measure of how much returns swing) is 17.19 per cent, slightly higher than the small-cap category average of 16.96 per cent. In simple terms: expect more ups and downs," said Value Research.

 

Ideal for Long-Term Investors: If you're investing with a horizon of 7+ years and prefer aggressive growth over stability, this fund could reward discipline.

 

Strategic Diversifier: With new picks in varied sectors — real estate, lifestyle, healthcare, finance — the fund offsets sector-specific risk, while staying aggressive.

 

Timing Matters: The fund's active strategy thrives on momentum — but moves quickly — so be prepared for swift changes.

 

Stay Invested for Growth: Long-term commitment may smooth out short-term swings.

 

Track Portfolio Themes: The latest additions hint at where Quant sees future small-cap opportunities.