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Quantum Mutual Fund has launched the Quantum Nifty 50 ETF Fund of Fund. This fund will likely be India’s first open-ended Nifty 50 ETF Fund of Fund and this scheme will likely be investing in items of Quantum Nifty 50 ETF. It mainly offers a chance for passive buyers to be part of India’s development story by offering publicity to the Nifty 50 Index, which is likely one of the benchmark indices of the Indian Inventory Market. The funding goal of the Scheme as per the fund home is “To offer capital appreciation by investing in items of Quantum Nifty 50 ETF – Replicating / Monitoring Nifty 50 Index however there isn’t any assurance or assure that the funding goal of the Scheme will likely be achieved” and The fund combines the effectivity of an ETF with the comfort of an index fund, giving buyers the most effective of each worlds.
Fundamental info about the NFO:
| Subject open | 18-Jul-22 |
| Subject shut | 01-Aug-22 |
| Fund supervisor | Hitendra Parekh (Additionally manages the underlying Quantum nifty 50 ETF) |
| Benchmark | Nifty 50 |
| Exit Load | 0 |
| Minimal funding quantity | 500 |
| Plan | Progress |
| Class | Giant cap |
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Execs and Dangers:
Firstly let’s look at the execs:
☐ The profit of diversification.
☐ The minimal funding is low and SIP possibility is obtainable so it’s extra accessible for small buyers.
☐ Low monitoring error of underlying fund.
☐ No Demat account is required.
Now, some of the dangers concerned:
☐ The chance concerned is excessive because it largely offers with equities (100 – 95% Quantum nifty fairness and 0-5% of Authorities securities & T.invoice Maturity as much as 91 days, Tri-party repo and liquid schemes of mutual funds).
☐ It’s a long-term investment-focused fund so there may be some near-term consolidation.
Underlying Quantum Nifty 50 ETF danger ratio:
☐ Beta: 0.99
☐ Sharpe Ratio: 0.44
☐ Treynor’s Ratio: 0.08
☐ Sortino Ratio: 0.52
Conclusion:
This fund, when in comparison with different FOFs, doesn’t present a lot of diversification because it primarily holds items of the Quantum nifty 50 ETF however for individuals within the index ETF this may could possibly be an possibility since this FOF comes with the flexibleness of a mutual fund, now you might ask why not select present Index funds that observe Nify 50, you might be proper, nevertheless, Although the fund shouldn’t be very distinctive when in comparison with different index funds it has decrease expense ratio therefore after contemplating all of the components, we might suggest that passive buyers with long-term funding goal could think about this NFO.
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