Upgrade to Pro — share decks privately, control downloads, hide ads and more …

What are the investment opportunities in India?

What are the investment opportunities in India?

How are the macro-economic factors likely to pan out in the future and what does it mean for India? What are the criteria to select a good mutual fund house? Why diversification is important? Find answers to these questions and much more.

601881d9b51b59092c7351d727cf0de9?s=128

Quantum Mutual Fund

June 09, 2021
Tweet

Transcript

  1. India Investment Opportunities Speakers: Mr. Sandeep Bhosle, AVP Customer Interaction

    Mr. Arvind Chari – CIO, Quantum Advisors May, 2021
  2. • What is the background? • What is the experience?

    PEOPLE • Is there a clearly defined investment philosophy across all market situations or is this a ride-the-wave, “bull-market” manager? PHILOSOPHY • What is the research and investment process and how reliable is it? PROCESS • Given the process, is the performance as predictable as it should be? PERFORMANCE Criteria to Select a Good Fund House
  3. 3 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 India’s 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.1,914.71 Cr. as on 30th April 2021  Number of Folios: 71,906 as on 30th April 2021 About Quantum Mutual Fund
  4. 4 Look Out For…. Event When Impact trend Remarks Budget

    February LT policies matter more than annual targets Monsoon June – Sept Need for a healthy water table Pakistan Winter sport A waste of time for both countries Local Politics The curse? A global problem China Recent Needs capital and materials US Fed Recent The “Risk on” and “Risk- off” behaviour 120 m youth Recent If no jobs then big trouble
  5. Myth #1- “India will grow 8% P.A” If the world

    slips sideways, India will grow...as it has over the past 39 year Source: RBI and www.parliamentofindia.nic.in as of Dec 2020. 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. We believe 6.5% Real GDP growth is a realistic long term assumption
  6. India will be a Large Part of The Global Economy:

    You Cannot Ignore It Source: Quantum, Angus Maddison, University of Groningen
  7. India’s Continued Reforms will Make India the Next China 2.3%

    3.9% 3.2% 2.9% 3.7% 2.2% 3.4% 4.0% 3.5% 3.3% 5.9% 5.4% 5.3% 5.2% 6.1% 6.7% 5.8% 8.5% 7.1% 4.9% 9.6% 9.9% 6.5% 12.3% 9.5% 7.8% 8.7% 11.6% 8.8% 7.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Jan 80 - Oct 84 Congress Nov 84 - Dec 89 Congress Jan 90 - Jun 91 Janata Dal* July 91 - May 96 Congress Jun 96 - Mar 98 DF* Apr 98 - Apr 99 BJP* Jun 99 - May 04 NDA* Jun 04 - May 09 UPA* Jun 09 - May 14 UPA* Jun 14 - Dec 20 NDA** Real GDP Growth World India China India average 6.1% China average 9.2% Source: Worldbank, RBI and www.parliamentofindia.nic.in as of December 2020. Please note that data used for World GDP for 2020 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 September.
  8. Based on Historical Data: A simple Equity Market Return Assumption

    Indian Equity Market Return Assumptions & Expectations GDP Growth, real +6.5% + Inflation +5.0% = GDP Growth, nominal +11.5% If GDP Growth = Revenue Growth (Revenues of Typical Companies) +11.5% Profit Growth of Typical Companies +11.5% Companies, listed and in an Index > Typical Company +13.5% In Long-term Equity Return should Reflect Corporate Earnings Past performance may or may not be sustained in future. Source: RBI, CMIE, Quantum Estimates
  9. Questions in Investor’s Mind What will be the impact of

    Resurgence of Covid-19? Will Value Style Perform ? Large Caps or Mid/Small Caps, where to invest? Why is diversification Important? India in a global context
  10. Covid-19: Second Wave or Tsunami Source: John Hopkins University 0

    50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 151 161 171 181 191 201 211 221 231 241 251 261 271 281 291 Daily Cases February 2021 to April 2021 March 2020 to December 2020 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 151 161 171 181 191 201 211 221 231 241 251 261 271 281 291 Daily Tests February 2021 to April 2021 March 2020 to December 2020 Days 0% 5% 10% 15% 20% 25% 30% 1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 151 161 171 181 191 201 211 221 231 241 251 261 271 281 291 Test Positivity February 2021 to April 2021 March 2020 to December 2020 Days 0 500 1000 1500 2000 2500 3000 3500 4000 1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 151 161 171 181 191 201 211 221 231 241 251 261 271 281 291 Daily Deaths February 2021 to April 2021 March 2020 to December 2020 Days
  11. Covid-19: Lockdown déjà vu ‘This Time is Different’ How is

    Corporate India Placed ? The lockdowns are lesser stringent and more localized 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
  12. 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
  13. Business Strength of Larger Companies Reflect in Equity Returns Over

    Long Term Past performance may or may not sustained in future
  14. What is ESG all about?

  15. Generic term given to non financial factors that can have

    a material impact on firm valuation What is ESG Investing? Replacing the question “how much return?” with “how much sustainable return?”
  16. 16 Our analysis is guided by the materiality of the

    issues Governance sits at the heart of our analysis Typically focus on areas such as capital allocation, board composition, quality of disclosures and treatment of minority shareholders Shortcomings go hand in hand with poor performance on the social and environmental fronts, making it a good proxy for wider problems Identify companies that can act as long term stewards of capital Quantum’s ESG Approach
  17.  Clean and Environmental friendly businesses  Businesses contributing towards

    the society  Businesses having a fair and transparent practices  Businesses that are responsible  Businesses where sustainability drives long term performance Make Quantum India ESG Equity Fund a core part of your portfolio!!! Investing with Values
  18. 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 23, 24 & 25 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
  19. 2021- A Simple Asset Allocation Strategy to Deal with Market

    Cycles
  20. Why is Diversification Important?

  21. 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? 21 Ignore Asset Allocation at your own Peril 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% Bonds 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% Sensex 12% Gold -5%
  22. Performance of Quantum Liquid Fund – Direct Plan – Growth

    Option Mr. Pankaj Pathak is the Fund Manager effective from March 01, 2017 Past performance may or may not be sustained in the future. Different Plans shall have a different expense structure. Data as of 30th April 2021 * Simple Annualized . Pankaj Pathak also manages Quantum Dynamic Bond Fund. Please refer slide no. 27 to review performance of Quantum Dynamic Bond Fund. ** Returns for 1 year and above period are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Current Value Rs 10,000 Invested at the beginning of a given period Benchmark Additional Benchmark Benchmark Additional Benchmark Period Scheme Returns (%) Crisil Liquid Fund Index Returns (%) Crisil 1 year T-bill Index Returns (%) Scheme (Rs.) Crisil Liquid Fund Index (Rs.) Crisil 1 year T-bill Index (Rs.) 7 Days* 2.98% 3.47% 3.31% 10,006 10,007 10,006 15 Days* 3.09% 3.55% 3.23% 10,013 10,015 10,013 1 Month* 3.04% 3.61% 4.28% 10,025 10,030 10,035 1 year** 3.12% 3.95% 3.73% 10,312 10,395 10,373 3 years** 5.08% 5.93% 6.46% 11,604 11,889 12,069 5 years** 5.55% 6.34% 6.43% 13,103 13,603 13,660 7 years** 6.26% 6.94% 6.96% 15,299 15,998 16,027 10 years** 7.07% 7.48% 6.97% 19,812 20,580 19,624 Since Inception (07th April 2006)** 7.03% 7.14% 6.32% 27,856 28,274 25,197
  23. 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 18,24 & 25, For performance of other Schemes Managed by Mr. Nilesh Shetty please see slide number 26. 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
  24. 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 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 47.42% 53.92% 46.26% 14,742 15,392 14,626 3 years 8.30% 11.46% 12.85% 12,707 13,851 14,377 5 years 12.83% 15.09% 15.15% 18,300 20,209 20,260 7 years 14.65% 14.43% 13.23% 26,052 25,710 23,874 10 years 12.09% 11.84% 11.35% 31,352 30,659 29,328 Since Inception (20th July 2009) 13.59% 12.47% 11.92% 44,930 39,966 37,709 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 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 18,23 & 25
  25. 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
  26. Other Schemes managed by Mr. Nilesh Shetty Quantum Long Term

    Equity Value Fund Mr. Sorbh Gupta effective from December 1, 2020.Co-managing with Mr. Nilesh Shetty effective from March 28, 2011 Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Long Term Equity Value Fund–Direct Plan (Gr) 57.24% 53.92% 7.82% 11.46% 11.17% 15.09% Quantum Long Term Equity Value Fund–Regular Plan (Gr) 56.46% 53.92% 7.39% 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 #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 & Mr. Nilesh Shetty manages 2 schemes of Quantum Mutual Fund.
  27. Quantum Dynamic Bond Fund Mr. Chirag Mehta effective from July

    12, 2019.Co-managing with Ms. Sneha Joshi effective from July 12, 2019 Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Dynamic Bond Fund – Direct Plan (Gr) 5.82% 7.69% 8.21% 8.97% 8.56% 8.61% Quantum Dynamic Bond Fund – Regular Plan (Gr) 5.69% 7.69% 8.08% 8.97% NA NA Past performance may or may not be sustained in the future. Data as on 31th April 2021 Different Plans shall have a different expense structure. Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Pankaj Pathak also manages Quantum Liquid Fund. #Benchmark: CRISIL Composite Bond Fund Index. Other Schemes managed by Mr. Pankaj Pathak
  28. Product Label

  29. Product Label

  30. Product Label

  31. Product Label

  32. 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. 21st May 2021 Mutual fund investments are subject to market risks, read all scheme related documents carefully.
  33. Thank You 33