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What is asset allocation?

What is asset allocation?

Understand your Savings, What are your financial goals, Put a number to it, priorities, Needs and Investment Options

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Quantum Mutual Fund

June 08, 2021
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  1. Prudent Financial Planning with Right Asset Allocation

  2. Now let’s understand Savings First.. Saving Before Spending, is the

    right way of financial planning. YOUR MONEY CYCLE
  3. A Car What are your financial goals? Defining your goal

    is the first step towards planning. Dream Holiday House Child’s Education Child’s Marriage Retirement
  4. Put a number to it, priorities & give a timeframe

    A CAR HOUSE DREAM HOLIDAY RETIREMENT ₹6L ₹60L ₹2L ₹2.5Cr. 2 Years 12 Months CHILD’S EDUCATION CHILD’S MARRIAGE ₹20L ₹30L 15 Years 25 Years 5 Years 25 Years Short Term Plan Medium Term Plan Long Term Plan Above number is illustrative purpose only
  5. Needs and Investment Options • Safety of Principal critical •

    Minimal volatility as one may need the money anytime • Better Returns, but capital to be safe • Little volatility to be expected • Returns have to beat inflation • Volatility can be blunted with time Short Term Needs 1-12 Months Medium Term Needs 12-60 Months Long Term Needs More than 60 Months • Bank Fixed Deposit • Bank Recurring Deposit • Liquid / Money Market Funds • Short Term Debt Funds • Direct Equities • Equity Diversifies Mutual Funds • Real Estate • EFP & PPF • Bank Fixed Deposits • Debt Funds • Corporate Fixed Deposits OBJECTIVE Options to Consider
  6. Investment avenues to achieve your goal Choose your investments depending

    on your Age, Risk appetite and Wealth Goals. In addition to FD there are other investment to consider to achieve your goals Amount Volatility Return RD/FD/Debt Gold/Gold ETFs Equities/MF Real Estate Starts at ₹500 Starts at ₹500 Starts at ₹500 Huge Lumpsum Amount Very Low Volatility Low-Medium Volatility Medium-high Volatility Low Volatility 5-8% pa 8-9 %+ in a good year 12-15%+ in a good year 3-4% Rental Return; 5-10% Annual Return in a good year Taxation Interest Taxable Gain Taxable Gain Tax-free upto ₹1 lakh Gain Taxable The comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to invest. Investments in 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 Mutual Funds. Investments in Mutual Funds as compared to Fixed deposit 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
  7. • Quarterly compounding and Tax rate on Fixed Deposit assumed

    to be 30% • Data as on December 2020. But consider inflation in your plans 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 Inflation affects your savings and returns. Make sure your goals are aligned to inflation. Past Performance may or may not sustained in future
  8. What is Asset Allocation? Asset allocation involves dividing an investment

    portfolio among different asset categories like equities, bonds, property, commodities and cash Summer Monsoon
  9. Benefits of Asset Allocation Reduced Risk: A properly allocated portfolio

    strives to lower volatility or fluctuation in returns, by simultaneously spreading market risk across several asset class categories Long term Risk Adjusted Returns: By Investing in a variety of asset class you can improve your chance of participating in market gains and lessen the impact of poorly performing asset class categories on overall results A Greater focus on Long–Term Goals: A properly allocated portfolio is designed to alleviate the need to constantly adjust investment positions to chase market trends. It can also help reduce the urge to buy or sell in response to short – term market swings.
  10. Importance of right asset allocation The above illustration is calculated

    for monthly SIP of Rs.24,000/-. Annual Return Assumed Equity – 10%, Debt – 8% and Gold – 6%. The above corpus are pre-tax. Investment Allocation Mr. A Corpus (Rs) Mr. B Corpus (Rs) Equities 30% 95.54 L 60% 1.91 Cr Debt & Cash 60% 82.46 L 30% 41.23 L Gold 10% 10.93 L 10% 10.93 L Total 100% 1.88 Cr 100% 2.43 Cr Likely to achieve the goal Age 35 years Time to Retire 20 years Retirement Corpus Required Rs. 2.20 Cr. Mr. A & Mr. B The above table is for illustrative purpose only. The information is not to be considered as investment advice/ recommendation. Investment through SIP does not guarantee any return or protection of capital.
  11. Benefits of Diversification -60% -40% -20% 0% 20% 40% 60%

    80% 100% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Equity Gold Bonds Imagine someone holding an all equity portfolio in 2008, or holding none in the equity rally that followed? Source: Bloomberg Data as on December 2020 Past Performance may or may not sustained in future
  12. 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? 12 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%
  13. None
  14. How Mutual Funds Work? In a mutual fund, our money

    is managed by a professional called fund manager. MUTUAL FUND
  15. Why invest with a Mutual Fund? Professional Management Diversification Return

    Potential Low Cost Liquidity Transparency Flexibility Choice of Schemes Well Regulated Tax benefits
  16. Your money can do more, with Mutual Funds 2,000 /

    2,344 = 0.85 shares 2,000 / 1125 = 1.78 shares 2,000 / 158 = 12.66 shares 2,000 / 241 = 8.30 shares 2,000 / 2,661 = 0.75 share Investor can invest in all companies at once through a mutual fund. If you had Rs. 2,000 to invest in Equities which would you pick? Investor can invest in one-two companies at most. The above information is for illustrative purpose only. The Mutual Fund schemes invest in stocks as per the scheme investment objectives.
  17. Young & Carefree Family Responsibilities PLAY INVESTMENT SACRED MONEY PLAY

    INVESTMENT SACRED MONEY Phases of our lives
  18. The above table is for illustrative purpose only. The information

    is not to be considered as investment advice/ recommendation. Investment through SIP does not guarantee any return or protection of capital.
  19. Create an Emergency Fund Keep 6-12 months of expenses in

    Liquid Fund, Bank Fixed Deposit so that It can be withdrawn immediately. Unplanned Expenses Job Loss Natural Calamities Sudden Loss of Income Hospital Expenses
  20. Suggested Fund Allocation 12-80-20 Approach Emergency Funds equivalent to 12

    month expenses. 20% in gold funds 80% in equity funds Please note that the above is the suggested fund allocation only and is not to be considered as investment advice/ recommendation. Please seek independent professional advice and arrive at an informed investment decision before making any investments.
  21. Our Suggested Allocation

  22. Equity generally works best in long term Longer the tenure,

    better the return As the Markets are cyclic BULL RUN Maximum Risk Maximum Opportunity Euphoria Suspicion Optimism Panic Fear Depression BEAR PHASE
  23. Start Your Journey with us

  24. Our Journey so Far • Quantum Long Term Equity Value

    Fund completes 10-year track record • Quantum Long Term Equity Value Fund • Quantum Liquid Fund • Set up Quantum AMC • Quantum Gold Fund • Quantum Nifty ETF • Quantum Tax Saving Fund • Quantum Gold Savings Fund • India’s first fully paperless Online Investing Platform • Quantum Equity Fund of Funds • “Path to Profit” Launched • Quantum Multi Asset Fund of Funds • Quantum Dynamic Bond Fund • Transactions through Email, WhatsApp & Fax • Launch of Regular Plans • Quantum India ESG Equity Fund 2005 2006 2008 2009 2011 2012 2015 2016 2017 2019
  25. What we offer Direct to Investor Focused on low cost

    approach. 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.
  26. Quantum Long Term Equity Value Fund 01 Mr. Sorbh Gupta

    Work experience: 15.9 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  QLTEVF uses bottom-up stock selection process used to minimize risk.  QLTEVF Follows disciplined research and investment process.  QLTEVF has a low portfolio turnover.  QLTEVF holds cash when stock are overvalued - no derivatives and no hedging.  QLTEVF contains a well-balanced portfolio: typically 25 to 40 stocks, across sector. Retirement. Child’s Education. Child’s Marriage. Wealth Creation. Fund Manager Category of Scheme Features Useful for
  27. Quantum Equity Fund of Funds 02 Mr. Chirag Mehta Work

    experience: 19 years. He has been managing this fund since November 1, 2013. 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. Long term capital appreciation. Fund Manager Category of Scheme Features Useful for
  28. Quantum India ESG Equity Fund 03 Mr. Chirag Mehta Work

    experience: 19 years. Ms. Sneha Joshi Work experience: 7 years. Both have been managing the fund since July 12, 2019. Thematic Scheme.  Offers an avenue to invest in businesses adhering to sustainable practices that will drive long term performance.  Invests based on a comprehensive in-house proprietary research on Environment, Social and Governance aspects.  Offers a well-diversified exposure to good quality and sustainable companies with relatively low volatility and downside risk. Long term capital appreciation. Fund Manager Category of Scheme Features Useful for
  29. Quantum Tax Saving Fund 04 Mr. Sorbh Gupta Work experience:

    15.9 years. He has been managing this fund Since October 1, 2016. Equity Linked Saving Scheme.  QTSF optimizes tax saving under Section 80C.  QTSF minimizes risk by pursuing bottom-up stock selection.  QTSF has a lower portfolio turnover.  QTSF holds cash when stocks are overvalued - no derivatives and no hedging.  QTSF follows a value investment strategy. Long term capital appreciation. Fund Manager Category of Scheme Features Useful for
  30. Quantum Multi Asset Fund of Funds 05 Mr. Chirag Mehta

    Work experience: 19 years. Mr. Nilesh Shetty Work experience: 16 years. Both have been managing this fund since July 11, 2012. Fund of Funds Domestic.  Diversifies across asset classes - which mitigates risk inherent of a particular asset class and provides risk adjusted returns.  Reduces dependency on a single asset class to generate returns.  No need to time markets. Invest in peace - the Fund manager strategically positions the portfolio to generate optimal returns while watching risks.  Follows regular rebalancing approach within each asset class which allows Investors to "buy- low sell-high”.  Aims at reducing volatility of returns. Long term capital appreciation and current income. Fund Manager Category of Scheme Features Useful for
  31. Quantum Liquid Fund 06 Mr. Pankaj Pathak Work experience: 11.6

    years. He has been managing this fund since March 01, 2017. Liquid Fund.  Invested in government securities treasury bills and AAA/A1 rated PSUs  No private corporate credit risks.  Entire portfolio is marked-to-market daily to ensure the declared NAV is “real”  Disciplined asset liability management.  Disciplined proprietary research and investment process.  Weekly disclosure of portfolio. Short term investment and liquidity. Fund Manager Category of Scheme Features Useful for
  32. Quantum Gold Savings Fund 07 Mr. Chirag Mehta Work experience:

    19 years. He has been managing this fund since May 19, 2011. Ms. Ghazal Jain Work experience: 4 years. She has been managing this fund since June 2, 2020. Fund of Funds Domestic.  Helps to diversify your Investments in gold.  Enables investments in gold through SIP or STP of as little as Rs 500/month.  Does not require a demat account as is the case with Gold ETFs.  Does away with problems like storage & theft as the fund house takes care of all risks of storage & safety for a minimal expense ratio.  Ensures quality of gold is up to the mark as it invests in Quantum Gold Fund where the gold is sourced from London Bullion Market Association approved refiners. For diversification and long-term capital appreciation. Fund Manager Category of Scheme Features Useful for
  33. And Investors have reposed their faith on us YoY 528

    1,039 1,326 3,664 6,162 11,566 19,405 29,332 32,557 38,606 38,065 44,156 46,246 51,022 53,070 55,123 55,598 - 10,000 20,000 30,000 40,000 50,000 60,000 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Apr-21 Active Investors Data as on 30th April 2021
  34. 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. 28th May 2021 Mutual fund investments are subject to market risks, read all scheme related documents carefully.
  35. For additional information, please contact: Quantum Asset Management Company Private

    Limited Hoechst House, 6th Floor, Nariman Point Mumbai-400021, India Sandeep Bhosle AVP- Customer Interaction Email: SandeepB@QuantumAMC.com Mobile: +91- 98209-43101 Office :+91-22-6144-7804 Fax :+91-22-2285-4318 Website: www.QuantumAMC.com
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