Quant Small Cap Fund: Smart Investing Strategies For Beginners

The Quant Small Cap Fund is an equity mutual fund scheme from Quant Mutual Fund. The fund was launched on 1 January 2013 and has been in existence for almost 12 years. The investment objective of the fund is to generate capital appreciation by investing in a well-diversified portfolio of small-cap companies. The fund has no lock-in period and the minimum one-time investment is ₹5,000. The minimum SIP investment amount is ₹1,000. The fund has an exit load of 1% if redeemed within 1 year and the expense ratio is 0.64%. The latest NAV or Net Asset Value of the fund as of 18 October 2024 is ₹296.8919. The AUM or Asset Under Management of the fund as of 30 September 2024 is ₹26,645 Crore. The fund has delivered average annual returns of 20.14% since its inception.

How to invest in Quant Small Cap Fund

Investing in the Quant Small Cap Fund can be done through a Systematic Investment Plan (SIP) or a one-time investment. The minimum SIP amount for the Quant Small Cap Fund is 1,000, while the minimum one-time investment is 5,000. The fund has no lock-in period, and investors can choose between regular and direct plans, with the only difference being the commission paid to the mutual fund broker/distributor. Direct plans have a lower expense ratio, leading to higher returns for investors.

The Quant Small Cap Fund is a Small Cap mutual fund scheme from Quant Mutual Fund, seeking to generate capital appreciation by investing in a well-diversified portfolio of small-cap companies. The fund was launched on January 1, 2013, and has been in existence for over 11 years. As of September 30, 2024, the fund had ₹26,645 Crores worth of assets under management (AUM) and is considered a medium-sized fund in its category.

The expense ratio of the Quant Small Cap Fund is 0.64%, which is close to the average for Small Cap funds. The fund's NAV, or Net Asset Value, as of October 18, 2024, was 296.8919. The AUM of the fund, which changes daily based on the fluctuation of underlying asset prices, was 26644.74 crore.

Investors should be aware of the exit load fee, which is charged if investments are withdrawn before a specific time period. For the Quant Small Cap Fund, there is an exit load of 1% if redeemed within 1 year from the date of allotment.

When considering investing in the Quant Small Cap Fund, it is important to assess the level of risk and volatility. This fund has a Very High risk level and falls more severely during stock price declines compared to funds that invest in larger companies. However, it offers higher returns in the long term.

Investors can purchase the Quant Small Cap Fund - Direct Plan fund directly from the Quant Mutual Fund website or through platforms like MF Central and MF Utility. Most banks also act as mutual fund distributors and can provide assistance.

Quant Small Cap Fund's performance and returns

The Quant Small Cap Fund is a mutual fund scheme that has been in existence for over 11 years, with an investment objective to generate capital appreciation by investing in a well-diversified portfolio of small-cap companies. The fund has delivered strong average annual returns of 20.14-20.15% since its inception and has doubled the money invested every 2 years.

As of October 2024, the fund's Net Asset Value (NAV) was 296.73-296.89, with an expense ratio of 0.62-0.64%. The fund has an Asset Under Management (AUM) of ₹26,645-90,626 Crore, indicating its popularity among investors.

The Quant Small Cap Fund has a very high-risk rating and is suitable for investors with a long-term investment horizon of at least seven years. The fund has generated higher returns compared to other funds in its category, with a 5-year return consistency of 7.49% annual returns 70% of the time.

The fund's performance has been volatile, with a standard deviation of 17.15, indicating a higher level of risk compared to other funds. Its ability to control losses in a falling market is below average.

Overall, the Quant Small Cap Fund offers strong return potential for investors with a long-term investment horizon, but it comes with higher risk and volatility.

Quant Small Cap Fund's risk and volatility

Investing in small-cap funds is generally riskier than investing in larger companies, as small-cap funds tend to fall more when stock prices fall. Therefore, while you can expect higher returns in the long term, there will be more severe ups and downs along the way.

Quant Small Cap Fund is a mutual fund scheme from Quant Mutual Fund that has been in existence for 11 years and 9 months. It has delivered average annual returns of 20.14% since its inception and has doubled the money invested every 2 years. The fund has a total value of assets under management (AUM) of ₹26,645 crores as of 30/09/2024. The expense ratio of the direct plan of this fund is 0.64%, which is close to what most other small-cap funds charge. The fund's NAV or Net Asset Value as of 18 October 2024 was 296.8919.

Quant Small Cap Fund has a SEBI Riskometer level of "Very High risk". The fund's ability to deliver returns consistently is higher than most funds in its category, but its ability to control losses in a falling market is below average. The fund's volatility is considered high, as it has a standard deviation of 17.15, which is greater than the category average of 11.9. This indicates that the fund's returns can vary greatly from the average.

In terms of asset allocation, as of 30 September 2024, 86.94% was invested in equity, 0.94% in debt, and 12.13% in other investments. The top holdings of the fund include Reliance Industries Ltd., JIO Financial Services Ltd., Aditya Birla Fashion and Retail Ltd., and Bikaji Foods International Ltd.

Overall, Quant Small Cap Fund offers potentially high returns but with a higher level of risk and volatility compared to other investment options.

Quant Small Cap Fund's tax implications

When investing in Quant Small Cap Funds, there are several tax implications to consider. Firstly, there is a fee payable to the mutual fund house for managing your investments, known as the expense ratio. This is a percentage of the fund's assets used for administrative, management, advertising, and other expenses. The expense ratio for Quant Small Cap Funds is 0.64%, which is deducted from the Net Asset Value (NAV) on a daily basis.

Secondly, there may be taxes payable upon exiting your mutual fund investments. These taxes depend on whether your investments are classified as long-term or short-term capital gains. If you sell your investments after holding them for more than one year, long-term capital gains tax will apply. The current tax rate for long-term capital gains is 12.5% if your total gains exceed 1.25 lakh. On the other hand, if you sell your investments within one year of purchase, short-term capital gains tax will apply, which is currently taxed at a rate of 20%. It is important to note that any cess or surcharge may not be included in these tax rates.

Additionally, there may be exit load fees associated with redeeming your investments before a specified period. For example, the Quant Small Cap Fund - Direct Plan has an exit load of 1% if redeemed within one year of investment.

Quant Small Cap Fund's investment objective

The Quant Small Cap Fund is a mutual fund scheme launched by Quant Mutual Fund in 1996. The fund's investment objective is to generate long-term capital appreciation by investing in a well-diversified portfolio of small-cap companies.

The fund aims to provide higher returns over the long term by investing primarily in smaller companies, which have the potential for strong growth but also carry higher risks. This means that investors can expect more severe ups and downs compared to funds that invest in larger companies.

To achieve its investment objective, the Quant Small Cap Fund is mandated to invest at least 65% of its assets in small-cap stocks at all times. As of September 2024, the fund had approximately 34% of its investments in small-cap stocks, with the remaining allocated to large-cap and mid-cap stocks, debt instruments, and cash & cash equivalents.

The Quant Small Cap Fund is suitable for investors who are willing to invest for the long term, typically at least seven years or more, and are comfortable with the higher risks associated with small-cap investments. While the fund offers the potential for higher returns, investors should be prepared for the possibility of higher losses as well.

The fund has no lock-in period, and investors can purchase it directly from the Quant Mutual Fund website or through platforms like MF Central and MF Utility. As of October 2024, the fund's Net Asset Value (NAV) was ₹300.0999, and it had an Asset Under Management (AUM) of over ₹26,644 crore.

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