Quantum long term equity mutual fund

I have been a strong advocate of equity investing for any one who wants to create "wealth" in the long run and It makes me laugh how the majority of us Indians run to the bank to put their money in fixed deposits as thats all they know of but they do not realize that they are not making their money work for them by lending it for interest income which again is taxable depending upon the tax bracket you fall in.

Why fixed deposits when you can own a part of a solid running business that has been churning profits for decades and in some cases more then a century? People believe that the stock market is some kind of gamble which it clearly isint.

Quantum long term equity fund was launched back in 2006 but I have only recently started investing in this fund and as usual before making an investment decision I did some home work as I normally ignore the ratings that different rating agencies give to different mutual funds. Quantum long term equity fund from what I have seen does extremely well when there is a solid fundamental rally and the way they manage their cash holdings is something to watch... This fund has done fairly well in the past and they are sitting on a lot of cash right now some 17-18% I believe and may be a lot more now with Infosys falling through the roof yesterday which they were holding in significant quantities. It would be interesting to see how Quantum manages this fall.

Quantum long term equity fund in my opinion should be a part of your core port folio. The exit loads are way too much starting from 4% which reduces till 24 months after which there is no exit load. This works in favor of those who stay invested as redemptions that leave behind a 4% or 3% exit load is a gain for those who stay invested. Expense ratio is 1.25% at present and I am hopeful that in future they will lead the market in keeping that as low as possible. I am looking forward to this fund's AUM grow in future so they have some room to lower the expense ratio further.

Another point to note is that this is in my opinion the best fund house to deal with directly. You dont need any paper work. If you have your KYC done already then you can just go to their website and fill out some details and make an investment straight away.

For those who have large sums of money to invest they should invest into their liquid fund with growth option and then do a STP to invest into Quantum long term equity fund to spread out your investment to get a good average cost per unit. Their liquid fund is also a good performer so its a good idea to spread out your investment if you are planning to invest large amounts else go with the SIP.

Have any question? Fire away..


Disclosure : I am an investor in this fund (Quantum long term equity fund)

Funds like ICICI Pru Equity Volatality Fund has also generated ove 17% returns over the past year.

Yes but Quantum long term equity will do a lot better them most funds on a regular basis in the long run for those who stay invested. Here are a few more reasons for investing in this Quantum long term equity fund.

Update : I have sold out all my holding at Quantum mf.

Returns were disappointing in this bull run due to huge cash holding in this fund. I decided to switch this money to midcap with Motilal Oswal's Focused midcap 30 which is doing great so far.