Quantum Asset rolls out maiden equity fund

Open-ended fund will invest in 25-40 stocks.

Quantum Asset Management Company, a new entrant in the mutual fund sector, has launched its first equity fund called Quantum Long Term Equity.

This plain vanilla open-ended equity fund proposes to invest in about 25-40 stocks following a bottom-up approach. The portfolio would comprise stocks with an average daily turnover of Rs 4.5 crore.

"The fund will not hesitate holding cash if the market does not offer value stocks picking. I am not shy of sitting on a pile of cash. Our cash positions in the PMS (portfolio management services) segment have ranged from 14 to 22 per cent of the total assets," said Ajit Dayal, director.

Dayal said the fund's main differentiating factor is that it would invest only when the fund manager sees value in the market, adding the markets did not offer value right now.

Clarifying the rationale of the launch at a time when the fund manager did not see value in the market, he said, "We would be building portfolio over six months."

The fund will chart no entry load but redemption within six months would attract an exit load of 4 per cent and would reduce progressively. The fund opens for subscription on February 8 and closes on February 25.