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Pandemic Impact. Economic Recovery. Investment Strategy

Pandemic Impact. Economic Recovery. Investment Strategy

The Covid-19 crisis in India has been one of the worst the country has ever seen. Amidst this turmoil, investors are also questioning the future of their financial wellbeing.
Join Chirag, Sr. Manager, Alternative Investments and Sorbh Gupta, Fund Manager, Equity, Quantum Mutual Fund as they dive deep into the asset class outlook and explain if equities are the right place to invest in during the ongoing pandemic. They will also highlight alternative investment avenues to park your money during these uncertain times.
In this webinar Chirag & Sorbh will answer questions such as how will the second wave of Covid-19 impact economic recovery, what asset allocation could you consider for uncertain times like this, is the Indian stock market immune to the Covid-19 surge?

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Quantum Mutual Fund

May 24, 2021
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Transcript

  1. Pandemic Impact. Economic Recovery. Investment Strategy – Insights Revealed! Speaker:

    Chirag Mehta, Senior Fund Manager, Alternative Investments Sorbh Gupta, Fund Manager, Equity May 21, 2021
  2. Covid-19: Second Wave or Tsunami

  3. As cases surged in Wave 2, Europe Increased Testing over

    7 months – India in month 3, needs more Testing 142,820 190,092 189,411 117,763 334,950 203,608 1,094,007 930,340 740,747 2,150,991 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 India France Italy Switzerland UK Day 1 of Second Wave As of Date (April 2021) Note: We have considered Day 1 of second wave for European Nations as 01st Oct 2021 and for India as 01st Feb 2021 Source : www.ourworldindata.org
  4. Fewer test may result in lower “Total Cases / Million”

    7,802 9,082 5,250 6,220 6,817 12,290 81,216 65,852 74,701 65,187 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 India France Italy Switzerland UK Day 1 of Second Wave As of Date (April 2021) Note: We have considered Day 1 of second wave for European Nations as 01st Oct 2021 and for India as 01st Feb 2021 Source : www.ourworldindata.org
  5. Lower cases reported will see lower “Total Deaths / Million”

    due to COVID Note: We have considered Day 1 of second wave for European Nations as 01st Oct 2021 and for India as 01st Feb 2021 Source : www.ourworldindata.org 112 470 594 240 623 146 1,523 1,983 1,223 1,881 - 500 1,000 1,500 2,000 2,500 India France Italy Switzerland UK Day 1 of Second Wave As of Date (April 2021)
  6. Doctors, Nurses and Hospital Beds per 100,000 population Countries Hospital

    beds per 100,000 people Doctors per 100,000 people Nurses per 100,000 people India 136 86 170 China 430 200 270 Srilanka 420 100 220 USA 290 260 1450 Germany 800 420 1320 Japan 1300 240 1220 World Average 290 160 380 World Bank Database
  7. Global Comparison of Healthcare spends Countries Public Expenditure as %

    of GDP Total Healthcare Spends as % of GDP Share of Out of Pocket expenses India 1.3% 3.6% 64.0% Japan 9.2% 10.9% 15.6% China 2.9% 4.5% 35.8% USA 14.3% 16.9% 15.4% South Korea 4.8% 7.1% 32.5% Germany 9.5% 11.2% 15.2% UK 7.5% 9.0% 16.3% Source: https://data.worldbank.org; https://www.livemint.com/news/india/india-s-economy-needs-big-dose-of-health-spending-11586365603651.html; https://prsindia.org/budgets/parliament/demand-for-grants-analysis-health-and-family-welfare; Union budget 2020
  8. Vaccine Rollout – A Slow Start

  9. Scenario 1: Covid-19 recedes

  10. Asset Class Outlook for 2021 if Covid-19 Recedes Central banks

    stay accommodative for some time before tapering Equities Debt Gold Strong wave of spending Equities Debt Gold Corporate and government balance sheets improve Equities Debt Gold Increase in inflation Debt Equities Gold Equities > Debt, Gold
  11. Scenario 2: Covid-19 lingers

  12. Asset Class Outlook for 2021 if Covid-19 Lingers Recessionary conditions:

    less spending Equities Debt Gold Central Banks stay accommodative to boost growth Equities Debt Gold Liquidity will lead to asset price inflation Equities Debt Gold Lower taxes, lower GDP and higher spending will increase Government deficit Debt Equities Gold Debt, Gold > Equities
  13. Bank on Stability

  14. 14 Are low & falling FD rates bothering you? Bank

    FD interest rates SBI 2.90% - 5.40% HDFC 2.50% - 5.50% ICICI 2.50% - 5.50% Axis 2.50% - 5.75% Kotak 2.50% - 5.30% Data as of May 10th 2021 2 4 6 8 10 12 14 SBI 1 year FD rate Source: FD Interest Rates - Compare Best Fixed Deposit Rate in India, 10 May 2021 (myloancare.in). Bloomberg, SBI
  15. FD could be a long term losing proposition Consumer Basket

    1990* 2000 2010 2015 2020 CAGR TOTAL SPENDING PER ANNUM 23,759 68,923 151,279 280,064 427,619 10.1% Price of gold, INR/10 grams 3,409 4,528 18,268 26,335 50,104 9.4% Units ( Grams) of gold to consume my basket 70 152 83 106 85 BSE SENSEX 730 4,659 15,585 26,557 47,751 14.9% Units of BSE-30 Index to consume my basket 33 15 10 11 9 Fixed Deposit Basket Index Value (Value of initial investment Jan 1, 1990 =1000) (SBI 1 Year Deposit Rate)* 1,064 2,220 3,550 4,628 5,814 6.0% Units of FD Basket to consume my basket 22 31 43 61 73 Past performance may or may not sustained in future Quarterly compounding and Tax rate on Fixed Deposit assumed to be 30%
  16. There have been years when equity markets had a brilliant

    run, years when only bonds were dependable, and years when gold shined the brightest, and these periods did not typically overlap Past performance may or may not sustained in future The chart ranks the best to worst performing indexes per calendar year from top to bottom *Data as of April 2021 Past performance may or may not be sustained in future. Based on S&P BSE Sensex; Domestic Gold prices and CRISIL Composite Bond Fund Index Source: Bloomberg Imagine someone holding an all equity portfolio in 2008, or holding none in the equity rally that followed? 16 Other assets have done well but it’s a challenge to pick winners amidst volatility 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* Sensex 49% Sensex 49% Gold 26% Sensex 83% Gold 23% Gold 32% Sensex 28% Sensex 11% Sensex 32% Bonds 9% Bonds 13% Sensex 30% Gold 8% Gold 16% Gold 28% Sensex 2% Gold 20% Gold 16% Bonds 9% Gold 24% Sensex 19% Bonds 7% Gold 12% Bonds 4% Bonds 14% Sensex -4% Gold 11% Gold 5% Sensex 7% Sensex 14% Sensex 17% Bonds 0.3% Bonds 4% Bonds 7% Sensex -52% Bonds 4% Bonds 5% Sensex -24% Bonds 9% Gold -5% Gold -8% Gold -7% Sensex 3% Bonds 5% Bonds 6% Bonds 11% Bonds 12% Gold -5%
  17. “BLACK SWAN” OR BLACK CROW? 26 years, 17 dislocations –

    maybe 4 unexpected • 1994: the Harshad Mehta scam, • 1995: the Mexico tequila crisis and the collapse of Emerging Markets, • 1997; the Asian crisis and the collapse of Emerging Markets, • 1998: the bankruptcy of Russia and hedge fund Long Term Capital Management, • 2000: the collapse of the tech bubble, • 2001: 9/11 and the bankruptcy of Unit Trust of India, • 2003: SARS, the Iraq war • 2008: the bankruptcy of Lehman, the Global Financial Crisis • 2013: Bernanke's twist led to India's collapse • 2016: Demonetization and the Great Indian Economic Slowdown • 2018: bankruptcy of IL&FS • 2019: Cooperative banks and developers going bust, • 2020: YES Bank, COVID-19
  18. Risk-Return Equity +Debt +Gold * Equity + Debt ** Equity

    Debt Gold CAGR 11.05% 11.00% 12.53% 7.24% 11.41% Annualized SD 9.41% 13.53% 22.15% 3.29% 17.37% VAR -15.53% -22.32% -36.55% -5.43% -28.67% Maximum Drawdown -21.43% -36.08% -56.17% -6.29% -25.22% Sharpe Ratio 0.5332 0.3674 0.2936 0.3662 0.3094 Portfolio Impact of Diversification If you compound your money at 12% per year you are better off than an investor who makes 25% in one year and loses 20% in the next The most diversified strategy yields similar returns with the lower volatility, compared to a pure equity strategy 18 Time frame is November 2004 to April 2021. The period is taken from 2004 since the asset allocation weights are calculated based on normalizing the historical monthly equity and debt indicators. Given the normalization time frame used in the strategy, data availability for certain parameters beyond the time frame analyzed was a constraint. Compiled by Quantum AMC *Equity-Debt-Gold in ratio of 40-40-20. **Equity-Debt allocated in 60-40 range Based on Sensex TRI, Crisil Composite Bond fund index, and Domestic Gold Prices Note: Past performance may or may not be sustained in the future
  19. Performance of Quantum Multi Asset Fund of Funds Direct Plan

    – Growth Option The Scheme is co-managed by Mr. Chirag Mehta and Mr. Nilesh Shetty since July 11, 2012. Past performance may or may not be sustained in the future. Load is not taken into consideration in scheme returns calculation. Data as of 30th April 2021 Different Plans shall have different expense structure. Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR). #Benchmark has been changed from Crisil Composite Bond Fund Index (40%) + S&P BSE SENSEX Total Return Index (40%) + Domestic price of gold (20%) to CRISIL Composite Bond Fund Index (20%) + S&P BSE Total Return Index (40%) + CRISIL Liquid Index (25%) + Domestic Price of Gold (15%) with effective from April 01, 2021. It is a customized index and it is rebalanced daily. For performance of other Schemes Managed by Mr. Chirag Mehta please see slide number 31,51 & 52. For performance of other Schemes Managed by Mr. Nilesh Shetty please see slide number 44. Period Current Value of 10,000 Invested at the beginning of a given period Scheme Returns (%) 0 Benchmark Returns (%)# S&P BSE Sensex TRI Returns (%) Scheme (Rs) Benchmark (Rs)# S&P BSE Sensex TRI (Rs.) 1 year 16.00% 20.01% 46.26% 11,600 12,001 14,626 3 years 8.55% 11.49% 12.85% 12,795 13,863 14,377 5 years 9.21% 11.22% 15.15% 15,544 17,026 20,260 7 years 9.26% 10.54% 13.23% 18,596 20,175 23,874 Since Inception (11th July 2012) 9.50% 10.42% 13.84% 22,254 23,944 31,329
  20. Quantum Multi Asset Fund of Fund An example of dynamic

    asset allocation Data as of April 2021; Source: Quantum MF Note: Past performance may or may not be sustained in future. 0 15000 30000 45000 60000 75000 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% 55.00% 60.00% 65.00% Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Equity allocation Sensex TRI
  21. 21 90% of the time, you would have been better

    off than a FD Past performance may or may not be sustained in future. The comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to invest. Investments in Quantum Multi Asset Fund of Funds / mutual funds should not be construed as a promise, guarantee on or a forecast of any minimum returns. Unlike fixed deposit with Banks there is no capital protection guarantee or assurance of any return in Quantum Multi Asset Fund of Funds / mutual funds investment. Investment in Quantum Multi Asset Fund of Funds as compared to Fixed Deposits carry moderately high risk, different tax treatment and subject to market risk and any investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor. Source – Bloomberg, Quantum AMC The performance shown in the graph should be reviewed in conjunction with detailed performance of the scheme provided on slide number 19 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 11-Jul-12 30-Apr-21 Quantum Multi Asset Fund of Funds SBI 1 year deposit CRISIL Composite Bond Fund Index (20%) + S&P BSE Total Return Index (40%) + CRISIL Liquid Index(25%) + Domestic price of Gold (15%) N A V Period (Base = 100, as on 11th July 2012) Total Days: 3215 Down Days: 336 Down Days %: 10.45 Returns since inception: 9.50% Standard Deviation : 5.99% (Annulised since inception)
  22. 22 84% of the time, you would have been better

    off on a 3-Year rolling basis Past performance may or may not be sustained in future. The comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to invest. Investments in Quantum Multi Asset Fund of Funds / mutual funds should not be construed as a promise, guarantee on or a forecast of any minimum returns. Unlike fixed deposit with Banks there is no capital protection guarantee or assurance of any return in Quantum Multi Asset Fund of Funds / mutual funds investment. Investment in Quantum Multi Asset Fund of Funds as compared to Fixed Deposits carry moderately high risk, different tax treatment and subject to market risk and any investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor. Source – Bloomberg, Quantum AMC The performance shown in the graph should be reviewed in conjunction with detailed performance of the scheme provided on slide number 19 0% 2% 4% 6% 8% 10% 12% 14% 16% July, 15 August, 15 September,… October, 15 November, 15 December, 15 January, 16 February, 16 March, 16 April, 16 May, 16 June, 16 July, 16 August, 16 September,… October, 16 November, 16 December, 16 January, 17 February, 17 March, 17 April, 17 May, 17 June, 17 July, 17 August, 17 September,… October, 17 November, 17 December, 17 January, 18 February, 18 March, 18 April, 18 May, 18 June, 18 July, 18 August, 18 September,… October, 18 November, 18 December, 18 January, 19 February, 19 March, 19 April, 19 May, 19 June, 19 July, 19 August, 19 September,… October, 19 November, 19 December, 19 January, 20 February, 20 March, 20 April, 20 May, 20 June, 20 July, 20 August, 20 September,… October, 20 November, 20 December, 20 January, 21 February, 21 March, 21 April, 21 QMAFOF 3 years rolling returns SBI FD 3 years rolling returns CRISIL Composite Bond Fund Index (20%) + S&P BSE Total Return Index (40%) + CRISIL Liquid Index(25%) + Domestic price of Gold (15%) 3 years rolling returns Total Days: 2120 Down Days : 336 Down Days %: 15.85
  23. Unbiased, dynamic and agile asset allocation.. Asset class Range of

    Exposure Fund Equity 25-65% Quantum Long Term Equity Value Fund, Quantum Nifty ETF, Quantum India ESG Equity Fund Debt 25-65% Quantum Liquid Fund, Quantum Dynamic Bond Fund Gold 10-20% Quantum Gold Fund (ETF) Past performance may or may not sustained in future
  24. Bank on Sustainability

  25. 25 Data Source: Bloomberg, LLP Past Performance may or may

    not be sustained in future. Stocks referred above are illustrative and not recommendation of Quantum Mutual Fund/AMC. The Fund may or may not have any present or future positions in these Stocks. The above information of stocks which is already available in publically access media for information and illustrative purpose only and not an endorsement / views / opinion of Quantum Mutual Fund /AMC. The above information should not be constructed as research report or recommendation to buy or sell of any stocks. Past Performance may or may not be sustained in future. Shree Cement Sustainability Initiatives  Business managed by professional CEO despite promoter holding of ~60%  5 of 9 Board members are independent  37% of the material from renewable sources  93% of packaging material is recyclable  Implemented responsible sourcing guidelines in 2017
  26. 26 Shree Cement Examples of irresponsible corporate behavior and their

    consequences ENVIRONMENTAL Affected element Irresponsible behavior Consequence Water Inadequate and poor proper waste management system Litigation and fines Bad reputation Protests by community members and organizations Negative media attention Stalled projects Air Use of traditional technologies to produce high-end products which lead to higher pollution Land Unchecked deforestation and mining can make the ground unsuitable for plant life SOCIAL Affected element Irresponsible behavior Consequence Supplier Low cost suppliers Litigation, bad reputation, product boycotts, Protests by community members and organizations Negative media attention Employee Unfair wages or poor working conditions Strikes and factory shutdowns; liabilities in case of injury or death of employee; sexual harassment cases; inability to attract and retain good talent Customer Low quality raw materials Consumer complaints, refunds, fewer repeat purchases, loss of market share, bad reputation, risk of litigation
  27. 27 *Percentage of studies showing Data Source: Oxford report ‘From

    stockholder to stakeholder’ based on more than 200 academic studies (March 2015) Strong ESG profile More competitive Higher Profitability Higher dividends Strong ESG profile Better risk management Lower risk of severe incidents Lower tail risk Strong ESG profile Low systematic risk Low cost of capital High valuation A Positive Correlation Between Sustainability and Economic Profitability
  28. Stock News Issue Date Share price drop on NSE J&K

    Bank Investigations against the former chairman following allegations that he offered loans worth crores to people recommended by politicians, placed his relatives in plum positions, and for even diverting funds meant for the bank’s corporate social responsibility (CSR) initiative Governance June -19 ~20% in 1 day Sun Pharma A whistleblower email claims Sun Pharma promoter Dilip Shanghvi and his brother-in- law engaged in financial irregularities with stock market scam accused Dharmesh Doshi Governance Dec-18 ~26% in 2 months Manpasand Beverages Deloitte resigned as statutory auditor before Q4 results saying in a letter to the board that the company didn’t provide “significant information.” Governance May -18 ~40% in 2 days Vakrangee Company came under the SEBI scanner for alleged price and volume manipulation of its own scrip on the BSE Governance Feb-18 ~48% in 5 days Vedanta Government rejected Vedanta’s bauxite mining plans in Niyamgiri Social & Environment Jan-14 ~66% in 2 years Satyam Computer Services Chairman confessed to accounting fraud to the tune of ₹7,000 crore and to falsifying revenues, margins and cash balances of the company. One of the largest accounting frauds, which raised serious questions on India’s corporate governance standards as well as the credibility of auditors. Governance Jan-09 ~78% in 1 day Stocks referred above are illustrative and not recommendation of Quantum Mutual Fund/AMC. The Fund may or may not have any present or future positions in these Stocks. The above information of stocks which is already available in publically access media for information and illustrative purpose only and not an endorsement / views / opinion of Quantum Mutual Fund /AMC. The above information should not be constructed as research report or recommendation to buy or sell of any stocks. Evidence of Stock Price Reaction to Negative News
  29. 29 As on April 30, 2021. Data Source: Bloomberg, LLP

    Past performance may or may not sustained in future ESG Indices Versus Equity Indices - 50 100 150 200 250 300 350 400 Apr 2011 Jul 2011 Oct 2011 Jan 2012 Apr 2012 Jul 2012 Oct 2012 Jan 2013 Apr 2013 Jul 2013 Oct 2013 Jan 2014 Apr 2014 Jul 2014 Oct 2014 Jan 2015 Apr 2015 Jul 2015 Oct 2015 Jan 2016 Apr 2016 Jul 2016 Oct 2016 Jan 2017 Apr 2017 Jul 2017 Oct 2017 Jan 2018 Apr 2018 Jul 2018 Oct 2018 Jan 2019 Apr 2019 Jul 2019 Oct 2019 Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Apr 2021 MSCI India ESG Leaders Index NIFTY 100 ESG Index NIFTY Index BSE 200 Index MSCI India Index Higher returns over long duration, Lower downside risk, Less volatile, Sustainable Profitability
  30. Governance - Board / Management / Ethics Environment and Social

    Externalities' Disruptive Change Growth & Capital Efficiency Financial Strength ESG is more about Identifying Opportunities
  31. Past performance may or may not be sustained in the

    future. Data as of 30th April , 2021 Load is not taken into consideration in scheme returns calculation Different Plans shall have different expense structure. The Schemes has been in existence for more than 1 year but has not yet completed 3 and 5 years period. 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 19, 51 & 52. Mr. Chirag Mehta manages 5 schemes of Quantum Mutual Fund. Period Current Value of 10,000 Invested at the beginning of a given period Benchmark Additional Benchmark Benchmark Additional Benchmark Scheme Returns (%) NIFTY 100 ESG TRI (%) S&P BSE Sensex TRI (%) Scheme (Rs) NIFTY 100 ESG TRI (Rs) S&P BSE Sensex TRI (Rs) 1 Year 61.20% 54.08% 46.26% 16,120 15,408 14,626 Since Inception (12th July 2019) 23.04% 19.85% 14.81% 14,540 13,867 12,832 Performance of Quantum India ESG Equity Fund - Direct Plan The Scheme is managed by Mr. Chirag Mehta and Ms. Sneha Joshi. Mr. Chirag Mehta is the Fund Manager effective from July 12, 2019. Ms. Sneha Joshi is the Associate Fund Manager effective from July 12, 2019
  32. Equities: Questions in Investor’s Mind Equities : Resilient or Complacent?

  33. Though localized, all of India is under some kind of

    restriction
  34. Covid-19: Lockdown déjà vu ‘This Time is Different’ How is

    Corporate India Placed ? The lockdowns are lesser stringent this time. Corporate Balance-Sheet are better. The focus has been on debt reduction and liquidity Last one year has been all about cost control and business continuity Pvt. Banks & NBFC’s have raised capital and are best capitalized in last 10 years As Global Recovery is intact, export companies and commodity producers are comfortably placed
  35. Corporate India: Listed Companies Are Faring Better

  36. Smaller Companies are Losing Market Share -60% -50% -40% -30%

    -20% -10% 0% 10% 20% 30% Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Sales Growth Top 3 Deciles Bottom 3 Deciles -40% -30% -20% -10% 0% 10% 20% 30% Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Fixed Assets Top 3 Deciles Bottom 3 Deciles CMIE- Economic Outlook, Data as on December 2020
  37. Business Strength of Larger Companies Reflect in Equity Returns Over

    Long Term Data as on 31st March 2021 Past performance may or may not sustained in future
  38. Spiking PER Overstates Valuation Given The June Quarter’s Gap Down

    Source: Bloomberg Finance L.P., as March, 2020 Past Performance may or may not be sustained in future.
  39. Estimates Corrected Sharply during first wave. Have seen upgrades since

    then Data as on 30th April 2021 Past performance may or may not sustained in future
  40. Earning upgrades driven by margin expansion: Real test of upgrade

    cycle will start now: EBITDA vs Revenue Growth % (FY21) 1Q21 2Q21 3Q21 4Q21* No. of Firms (A)** 80 80 80 28 Firms with EBITDA outperformance YoY (B) 27 60 57 20 (B)/(A) % 34% 75% 71% 71% Firms with EBITDA outperformance QoQ (C) 36 52 41 10 (C)/(A) % 45% 65% 51% 36% EBITDA Margins (FY21) 1Q21 2Q21 3Q21 4Q21* No. of Firms (A)** 80 80 80 28 Firms with margin Improvements YoY (B) 27 60 58 20 (B)/(A) % 34% 75% 73% 71% Firms with margin Improvements QoQ (C) 40 61 42 10 (C)/(A) % 50% 76% 53% 36% * As of now 28 firms have come out with results in 4q21 ** Out of BSE 100; 20 firms are financials hence not considered for analysis Past performance may or may not sustained in future. Source: Bloomberg
  41. 6.5% is a good long-term assumption; 8% is NOT a

    good long-term assumption! Myth #1- “India will grow 8% P.A” Real GDP growth rate across 10 governments has been 6.3% p.a. over the last 39 years Source: RBI and www.parliamentofindia.nic.in as of June 2019. Note: The number in red rectangle is from a changed data series starting Jan 2015. While a “superior” series, there is no comparable number to equate the “New” with the “Old”. Most economists deduct 0% to 1.5% from the “New” to equate to the “Old”; therefore under Modi, the GDP has been at 5.9% at best matching the 5.6% under the BJP-led coalition government of Vajpayee that resulted in a rout for the BJP at the time of the next election in 2004!* Please note that data used for World GDP for 2017 is a median Estimate since World Bank data is not yet available and India GDP data is governments second advance estimate released at the end of May.
  42. Lockdowns Need to be Contained: India’s Biggest Risk – Jobs

    & Income
  43. Quantum Long Term Equity Value Fund Mr. Sorbh Gupta Work

    experience: 15 years. He has been managing this fund Since December1, 2020. Mr. Nilesh Shetty Work experience: 16 years. He has been managing this fund Since March 28, 2011. Value Fund • Uses bottom-up stock selection process used to minimize risk. • Follows disciplined research and investment process. • Low portfolio turnover. • Holds cash when stock are overvalued - no derivatives and no hedging. • A well-balanced portfolio: typically 25 to 40 stocks, across sector. Retirement Planning. Child’s Education. Child’s Marriage. Wealth Creation. Fund Manager Category of Scheme Features Useful for
  44. Performance of Quantum Long Term Equity Value Fund – Direct

    Plan – Growth Option Period Current Value of 10,000 Invested at the beginning of a given period Benchmark* Additional Benchmark Benchmark* Additional Benchmark Scheme Returns (%) S&P BSE 200 TRI (%) S&P BSE Sensex TRI (%) Scheme (Rs) S&P BSE 200 TRI (Rs) S&P BSE Sensex TRI (Rs) 1 year 57.24% 53.92% 46.26% 15,724 15,392 14,626 3 years 7.82% 11.46% 12.85% 12,538 13,851 14,377 5 years 11.17% 15.09% 15.15% 16,991 20,209 20,260 7 years 12.31% 14.43% 13.23% 22,546 25,710 23,874 10 years 11.47% 11.84% 11.35% 29,659 30,659 29,328 Since Inception (13th Mar 2006) 13.39% 12.12% 11.99% 67,030 56,564 55,546 Past performance may or may not be sustained in the future. Load is not taken into consideration in scheme returns calculation. Data as of 30th April 2021 Different Plans shall have different expense structure. Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR). *with effect from February 01,2020 benchmark has been changed from S&P Sensex TRI to S&P BSE 200 TRI. As TRI data is not available since inception of the scheme, benchmark performance is calculated using composite CAGR S&P BSE 200 index PRI Value from March 13, 2006 to July 31, 2006 and TRI Value since August 1, 2006. For performance of other Schemes Managed by Mr. Sorbh Gupta please see slide number 53 and for performance of other Schemes Managed by Mr. Nilesh Shetty please see slide 19 The Scheme is co-managed by Mr. Sorbh Gupta and Mr. Nilesh Shetty. Mr. Sorbh Gupta is the Fund Manager effective from December 1, 2020. Mr. Nilesh Shetty is the Fund Manager effective from March 28, 2011.
  45. Quantum Long Term Equity Value Fund – A Must have

    Equity Diversified Fund Value Oriented Equity Diversified Fund since March 2006 Well balanced portfolio: typically 25 to 40 stocks, across sectors Instrumental for Long Term Financial Goals like Retirement, Child’s Education, Child’s Marriage & Wealth Creation A disciplined research and investment process Low portfolio turnover: Buy after Conviction, Hold it for long Holds shares or cash: No derivatives, No hedging
  46. Portfolio geared to benefit from the economic recovery at the

    same time minimizing risk of permanent loss of capital Winter crop (Rabi) production has been robust monsoon is expected to be normal. The recent surge in agri commodity prices will help farm income. Some of the portfolio stocks are well positioned to benefit from strong agri & rural economy High quality stocks in IT, Consumer discretionary, Banking & Capital goods, available at reasonable valuations were added to the portfolio in the correction in February & March 2020 Higher weight in Cyclicals like NBFCs & Consumer discretionary should aid performance in an economic recovery Portfolio stocks look comfortable after stress test - have strong balance-sheet or strong parentage to survive the downturn Existing cash holding will be used to add new names in case of correction
  47. 2021 – Boom & Bust, Evenly Poised • Boom: •

    Real economic activity continue to revive & corporate earning upgrade happen • Real estate revives – stamp duty cut, lower interest rates spur real estate demand • Factories relocate from China to India • Foreign flows – FDI + FII driven by higher yields and faster growth • Bust: • Poor Government Policy • Resurgence in Covid cases, Poor execution of Vaccine rollout • Rising Inflation could dampen Demand Recovery
  48. 2021- A Simple Asset Allocation Strategy to Deal with Market

    Cycles
  49. Solutions to meet Sustainable Development Goals: SGD-17 SMILE was born

    out of our desire to support credible NGOs and create a steady stream of money flow for them Since 2018, Quantum MF investors have supported 7 NGOs from diverse sectors via the SMILE facility WHAT IS SMILE? THE SMILE STORY OUTCOME SO FAR SMILE enables Quantum MF investors to contribute 10% of their investment in eligible schemes to charities vetted by HelpYourNGO + = “SMILE”
  50. SMILE Process Flow Q Long Term Equity Value Fund Q

    Equity Fund of Funds Q Dynamic Bond Fund Q Multi Asset Fund of Funds Q Gold Savings Fund Q Liquid Fund Donated to NGOs selected by investors and vetted by HelpYourNGO HelpYourNGO sends donation receipts and 80G Liaises with NGO grantees Monitors & reviews INVEST IN SMILE FACILITY DONATE TO NGO’S DONATION RECEIPTS Investors receive periodic program reports from HYNGO on the NGOs supported by them Investors receive periodic program reports from HelpYourNGO on the NGOs supported by them * Q Stands for Quantum for scheme names
  51. 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 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Gold Fund (Gr) -1.17% -0.37% 13.37% 14.44% 7.89% 8.94% Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data as of 30th April , 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 Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Gold Savings Fund– Direct Plan (Gr) -3.38% -0.37% 13.17% 14.44% 8.19% 8.94% Quantum Gold Savings Fund– Regular Plan (Gr) -3.46% -0.37% 13.05% 14.44% NA NA Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data as of 30th April , 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. 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 Other Schemes managed by Mr. Chirag Mehta
  52. Quantum Equity Fund of Funds Mr. Chirag Mehta is the

    Fund Manager effective from November 01, 2013. Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Equity Fund of Funds – Direct Plan (Gr) 47.42% 53.92% 8.30% 11.46% 12.83% 15.09% Quantum Equity Fund of Funds – Regular Plan (Gr) 47.06% 53.92% 8.09% 11.46% 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 30th April , 2021. # S&P BSE 200 TRI 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 Other Schemes managed by Mr. Chirag Mehta
  53. Other Schemes managed by Sorbh Gupta Quantum Tax Saving Fund

    Mr. Sorbh Gupta is the Fund Manager effective from October 1, 2016. Past performance may or may not be sustained in the future. Data as of 30th April , 2021 #S&P BSE 200 TRI. With effect from February 01,2020 benchmark has been changed from S&P Sensex TRI to S&P BSE 200 TRI. 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. Sorbh Gupta co-manages 2 scheme of the Quantum Mutual Fund. Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Tax Saving Fund- Direct Plan (Gr) 56.74% 53.92% 7.91% 11.46% 11.34% 15.09% Quantum Tax Saving Fund- Regular Plan (Gr) 55.98% 53.92% 7.46% 11.46% N.A. N.A.
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  59. Disclaimer – Terms of Use For AMFI/NISM Certified partners only.

    For private circulation only. 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. 21st May 2021 Mutual fund investments are subject to market risks, read all scheme related documents carefully.
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