Equity Investing simplified with Quantum Equity Fund of Fund (QEFOF)

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Quantum Equity Fund of Funds February
2021 Private Confidential
Panel Discussion on Asset Classes of Equity, Debt
Gold Speakers Sorbh Gupta Fund Manager,
Equity Chirag Mehta Sr. Fund Manager,
Alternative Investments December 17, 2020
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TABLE OF CONTENTS
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ABOUT US
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Group Update The Past 25 Years

• Set the foundation for building an India-focused
  investment management institution across the 4
  major asset classes equity, fixed income, real
  estate, infrastructure Steady growth in assets,
  disciplined approach attracting clients
• Need for multiple asset classes to reduce the
  business risk of being dependent on any ONE
  product
• India is not mainstream - huge volatility
  in valuations and client interest
• 1990 to 2004 investment processes refined by
  affiliation with international groups
• 2004 to 2008 invested in people
• 2004 to 2008 incubated teams to diversify
  business risk
• 2008 to 2009 invested in world-class systems
• 2010 onwards maintaining our focus and
  discipline succession planning

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Our Journey so Far
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About our Sponsor Quantum Advisors Pvt. Ltd.

• Currently managing an AUM of USD 2.76 Billion
  (INR 20,292 crore) as February 28, 2021
• Manages Indian equity investments for some of the
  largest institutions in the world, including
  Sovereign Wealth Funds, pension funds,
  endowments, and foundations
• Currently registered as a Portfolio Manager with
  SEBI and other international regulators
• Quantum Advisors is 50.8 owned by Mr. Dayal and
  the Management Team and 49.2 owned by HWIC Asia.
  HWIC Asia is ultimately promoted and wholly owned
  by Fairfax Financial Holdings Limited (FFHL).
  FFHL is listed on the Toronto Stock Exchange and
  is led by Mr Prem Watsa, known as the Warren
  Buffet of Canada

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ABOUT QUANTUM MUTUAL FUND
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About Quantum Mutual Fund

• Quantum Mutual fund was established in 2006 with
  the launch of the Quantum Long Term Equity Value
  Fund
• Quantum Mutual Fund was the 29th, but Indias 1st
  Fund house that started with a focus on a Low
  Cost Approach for investors
• Simple range of funds No confusion for investors
  
• Disciplined Research and Investment Process
  Team-driven, no star fund managers
• Staying the course, no short cuts Asset
  Managers, not Asset Gatherers
• Quantum MF AUM Rs.1,978.61 Cr. as on 28th
  February 2021
• Number of Folios 70,886 as on 28th February 2021

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Company Structure
100 subsidiary of QAS
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Always Putting Investors First, Even Above our
Growth in AUM
Quantum Mutual Fund SEBI Imposes Rule on MF Industry
Refused to follow the opaque Entry Load Model Mar 2006 Jun 2009
Pioneered Direct to Investor, despite Slow Internet Speed and No Smart Phones Mar 2006 Jan 2013
One Scheme / product per asset class Mar 2006 Oct 2017
Exit Load swept into funds for the benefit of Unit Holders Mar 2006 Nov 2012
No Discrimination against Retail Investors Mar 2006 Sep 2012
Introduced the practice of following Total Return Index (TRI) as benchmark for Equity Fund Mar 2006 Jan 2018
Majority of Independent Directors on AMC Board Mar 2006 ?
Path to Profit (Investor Education Awareness Program) Aug 2009 Sep 2012
100 Independent Board of Trustees Oct 2010 ?
Mark to Market valuation in Liquid Fund, irrespective of the maturity Jul 2012 April 2020
ZERO Upfront Distributor Commission and uniform trail commission across all partners on Regular Plan Apr 2017 Sep 2018
TER based on AUM Slabs Feb 2017 April 2019
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Profile of Management Team - QAMC
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(No Transcript)
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Portfolio Team Equity
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Portfolio Team Non Equity
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Criteria to Select a Good Fund House
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QEFOF PROCESS
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Usual Mutual Fund Investing Process
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Investing in Quantum Equity Fund of Funds
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Step 1 Filtration
Actively managed Equity Funds
No Sector Index Funds
Funds Disqualified
Diversified Equity Funds
With track record lt 3 years disqualified

• Diversified Equity Funds with a 3-Yr track record
• We see 3 year YoY returns, not CAGR
• At this stage the schemes are categorized as
  Large cap or Non Large cap
• Minimum 60 exposure to large caps required to be
  classified as Large cap scheme

• Top 5 stocks/holdings lt40 of the portfolio,
• Top 10 stocks/holdings lt60 of the portfolio
• Portfolio turnover lt100

Funds Disqualified
Selected list of funds
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Step 2 Scoring (Quantitative criteria)
Selected list of funds
Apply Phase I Quantitative criteria
Risk Adjusted Returns and Parameters Performance across Market Cycles Portfolio Valuation
Method Multiple parameters of risk adjusted returns that provide insights into performance of the fund with respect to the benchmark and peer comparison Each parameter provides us with some unique insight on fund managers performance and overall consistency Return Performance and Return consistency We prefer fund managers who have participated in multiple market cycles and proved their mettle We also assign a fair share to the relative valuation attractiveness of the fund vis-à-vis its peer group
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Step 2 Scoring (Qualitative Criteria)
Selected list of funds
Apply Phase II Qualitative criteria
Investment Systems and Process Look for Red flags Consistency in Characteristics of the Portfolio
Method Detailed Questionnaire meetings Portfolio construction process Limit on exposure to a single stock or a particular sector Measurement against benchmark / peers tracking error What is the limit on cash holdings? Other Funds managed by the fund manager Back up on portfolio? Star fund manager risk Fund manager meetings provides us with an opportunity to verify if the Fund Manager walks the talks and we dont invest in funds where we see any red flags Subjective assessment Philosophy Strategy adherence Process orientation Team dependence Internal vs external research
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Portfolio Fund Review

• Monthly review of chosen funds
• Quantitative Performance Ranking
• Portfolio Characteristics
• Adherence to mandate
• Qualitative assessment - Fund managers are met
  regularly
• Create and monitor a pool of investible funds
• Re-balancing is done yearly or opportunistically
  while deploying cash
• EXIT MECHANISM Portfolio Funds not meeting the
  criteria are given 6 months cooling period unless
  imperative to replace immediately on review

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Performance of Quantum Equity Fund of Funds
Fund Manager
Mr. Chirag Mehta Work experience 19 years. He
has been managing this fund since November 1,
2013.
Category of Scheme
Fund of Funds Domestic.
Exposure to congruous and diligent performer from
a cluttered equity fund universe of approximately
500 funds. The risk of wrong selection of funds
is reduced as a basket of the finest schemes is
chosen with the research expertise of
Quantum. Single manager risk is eliminated as
your money is exposed to diverse fund management
styles. You can gain exposure to a basket of 6-7
diversified equity schemes with a mere 500
rupees. No hassles of making and tracking
multiple investments. A single NAV is all you
need to check. The fund can rebalance and
reallocate your money from underperforming
schemes to better. performing ones in a more tax
efficient way.
Features
Useful for
Long term capital appreciation.
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Performance of Quantum Equity Fund of Funds
Direct Plan Growth Option The Scheme is
managed by Mr. Chirag Mehta effective from
November 1, 2013.
Period   Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period
Period   Benchmark Additional Benchmark Benchmark Additional Benchmark
Period   Scheme Returns () SP BSE 200 TRI () SP BSE Sensex TRI () Scheme (Rs) SP BSE 200 TRI (Rs) SP BSE Sensex TRI (Rs)
1 year 25.48 33.70 30.00 12,540 13,360 12,990
3 years 8.67 12.06 14.22 12,831 14,067 14,894
5 years 15.59 17.63 17.89 20,625 22,512 22,764
7 years 16.13 15.44 14.32 28,483 27,328 25,515
10 years 12.95 12.57 12.23 33,815 32,698 31,701
Since Inception (20th July 2009) 13.71 12.53 12.16 44,467 39,391 37,940
Past performance may or may not be sustained in
the future. Load is not taken into consideration
in scheme returns calculation. Data as of 26th
February 2021.Different Plans shall have
different expense structure. Returns are net of
Total Expenses and calculated on the basis of
Compounded Annualized Growth Rate (CAGR). For
performance of other Schemes Managed by Mr.
Chirag Mehta please see slide number 26 and 27
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Performance of Quantum Equity Fund of Funds
Regular Plan Growth Option The Scheme is
managed by Mr. Chirag Mehta effective from
November 1, 2013.
Period   Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period
Period   Benchmark Additional Benchmark Benchmark Additional Benchmark
Period   Scheme Returns () SP BSE 200 TRI () SP BSE Sensex TRI () Scheme (Rs) SP BSE 200 TRI (Rs) SP BSE Sensex TRI (Rs)
1 year 25.18 33.70 30.00 12,510 13,360 12,990
3 years 8.46 12.06 14.22 12,757 14,067 14,894
Since Inception (1st April 2017) 10.27 13.42 15.19 14,660 16,366 17,387
Past performance may or may not be sustained in
the future. Load is not taken into consideration
in scheme returns calculation. Data as of 26th
February 2021. Different Plans shall have
different expense structure. Returns are net of
Total Expenses and calculated on the basis of
Compounded Annualized Growth Rate (CAGR). For
performance of other Schemes Managed by Mr.
Chirag Mehta please see slide number 26 and 27.
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Other Schemes managed by Mr. Chirag Mehta
Quantum Gold Fund Mr. Chirag Mehta is managing
the scheme effective from May 1, 2009. Ms. Ghazal
Jain is co-managing the scheme effective from
June 2, 2020
Period 1 year 1 year 3 years 3 years 5 years 5 years
  Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns ()
Quantum Gold Fund (Gr) 6.78 7.67 13.60 14.68 7.51 8.59
Past performance may or may not be sustained in
the future. Domestic Price of Gold. Data as of
26th February 2021 Returns are net of total
expenses and are calculated on the basis of
Compounded Annualized Growth Rate (CAGR). Mr.
Chirag Mehta manages 5 Schemes and Ms. Ghazal
Jain manages 2 Schemes of the Quantum Mutual
Fund. The Scheme being Exchange Traded Fund has
one plan to invest through stock exchange and
having a single expense structure
Quantum Gold Savings Fund Mr. Chirag Mehta is
managing the scheme effective from May 19, 2011.
Ms. Ghazal Jain is co-managing the scheme
effective from June 2, 2020
Period 1 year 1 year 3 years 3 years 5 years 5 years
  Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns ()
Quantum Gold Savings Fund Direct Plan (Gr) 7.39 7.67 14.19 14.68 8.56 8.59
Quantum Gold Savings Fund Regular Plan (Gr) 7.30 7.67 14.06 14.68 NA NA
Past performance may or may not be sustained in
the future. Domestic Price of Gold. Data as of
26th February 2021 Returns are net of total
expenses and are calculated on the basis of
Compounded Annualized Growth Rate (CAGR).
Different Plans shall have different expense
structure. Mr. Chirag Mehta manages 5 Schemes
and Ms. Ghazal Jain manages 2 Schemes of the
Quantum Mutual Fund.
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Other Schemes managed by Mr. Chirag Mehta
Quantum India ESG Equity Fund Mr. Chirag Mehta
effective from July 12, 2019.Co-managing with Ms.
Sneha Joshi effective from July 12, 2019
Period 1 year 1 year 3 years 3 years 5 years 5 years
  Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns ()
Quantum India ESG Equity Fund Direct Plan (Gr) 40.61 37.13 NA NA NA NA
Quantum India ESG Equity Fund Regular Plan (Gr) 39.77 37.13 NA NA NA NA
Past performance may or may not be sustained in
the future. Data as on 26th February
2021 Different Plans shall have different expense
structure. Returns are net of total expenses and
are calculated on the basis of Compounded
Annualized Growth Rate (CAGR). Mr. Chirag Mehta
manages 5 Schemes and Ms. Sneha Joshi 1 Schemes
of the Quantum Mutual Fund. NIFTY 100 ESG TRI.
Quantum Multi Asset Fund of Funds Mr. Chirag
Mehta Co-managing along with Mr. Nilesh Shetty
effective from July 11, 2012.
Period 1 year 1 year 3 years 3 years 5 years 5 years
  Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns ()
Quantum Multi Asset Fund of Funds Direct Plan (Gr) 15.25 17.51 8.78 13.11 10.50 12.88
Quantum Multi Asset Fund of Funds Regular Plan (Gr) 14.90 17.51 8.54 13.11 NA NA
Past performance may or may not be sustained in
the future. Load is not taken into consideration
in Scheme Return Calculation. Data as of 26th
February 2021. Indicates CRISIL Composite Bond
Fund Index (40) SP BSE SENSEX Total Return
Index (40) Domestic price of Gold (20). It is
a customized index and it is rebalanced daily
Returns are net of total expenses and are
calculated on the basis of Compounded Annualized
Growth Rate (CAGR). Different plans shall have
different expense structure. Mr. Chirag Mehta
manages 5 schemes of the Quantum Mutual Fund. Mr.
Nilesh Shetty manages 2 schemes of the Quantum
Mutual Fund.
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For additional information, please contact
Sandeep Bhosle AVP- Customer Interaction Email
SandeepB_at_QuantumAMC.com Mobile 91-
98209-43101 Office 91-22-6144-7804 Fax 91-22-2
285-4318 Website www.QuantumAMC.com
Quantum Asset Management Company Private
Limited Hoechst House, 6th Floor, Nariman
Point Mumbai-400021, India
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Disclaimer Terms of Use
The data in this presentation are meant for
general reading purpose only and are not meant to
serve as a professional guide/investment advice
for the readers. This presentation has been
prepared on the basis of publicly available
information, internally developed data and other
sources believed to be reliable. Whilst no action
has been suggested or offered based upon the
information provided herein, due care has been
taken to endeavor that the facts are accurate and
reasonable as on date. Quantum AMC shall make
modifications and alterations to the performance
and related data from time to time as may be
required as per SEBI Mutual Fund Regulations.
Readers are advised to seek independent
professional advice and arrive at an informed
investment decision before making any investment.
None of the Sponsors, the Investment Manager, the
Trustee, their respective Directors, Employees,
Affiliates or Representatives shall be liable for
any direct, indirect, special, incidental,
consequential, punitive or exemplary damages,
including lost profits arising in any way from
the data/information/opinions contained in this
presentation. The Quantum AMC shall make
modifications and alterations to the performance
and related data from time to time as may be
required. Please visit www.QuantumMF.com to
read scheme specific risk factors. Investors in
the Scheme are not being offered a guaranteed or
assured rate of return and there can be no
assurance that the schemes objective will be
achieved and the NAV of the scheme may go up and
down depending upon the factors and forces
affecting securities market. Investment in mutual
fund units involves investment risk such as
trading volumes, settlement risk, liquidity risk,
default risk including possible loss of capital.
Past performance of the sponsor / AMC / Mutual
Fund does not indicate the future performance of
the Scheme. Statutory Details Quantum Mutual
Fund (the Fund) has been constituted as a Trust
under the Indian Trusts Act, 1882. Sponsor
Quantum Advisors Private Limited. (liability of
Sponsor limited to Rs. 1,00,000/-). Trustee
Quantum Trustee Company Private Limited.
Investment Manager Quantum Asset Management
Company Private Limited. The Sponsor, Trustee and
Investment Manager are incorporated under the
Companies Act, 1956. 18th March 2021 Mutual
fund investments are subject to market risks,
read all scheme related documents carefully.
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Thank You