Quantum Fixed Income Team - Mutual Fund · • Debt Funds or Income Funds are mutual fund schemes...

Quantum Dynamic Bond Fund (An Open-ended Debt Scheme with Defined Credit Exposure

and Dynamic Maturity Profile )#

NFO date 29/4/2015

to 13/5/2015

Quantum Fixed Income Team

Quantum Dynamic Bond Fund

(Yellow)

Medium risk

1 Date: 16 April 2015


PRODUCT LABEL

This product is suitable for investor who are seeking*:

Regular income over short to medium term and capital appreciation

Investment in Debt / Money Market Instruments / Government Securities

Medium risk (YELLOW)

(BLUE) investors understand

that their principal will be at low

risk

(YELLOW) investors understand

that their principal will be at

medium risk

(BROWN) investors

understand that their principal

will be at high risk

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Risk may be represented as:

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• Debt Funds or Income Funds are mutual fund schemes which invest in debt securities and money market instruments.

• They aim to generate income and moderate capital appreciation with relatively lower risk.

• Dynamic Bond Fund is a debt fund which gives the fund manager flexibility to actively manage the portfolio based on interest rate view.

Debt Fund vs Dynamic Bond Fund


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• Investment Objective

• To generate income and capital appreciation through active management of portfolio consisting of short term and long term debt and money market instruments .

• Fund Features • Invest in high quality debt and money market instruments.

• Manage portfolio duration based on market assessments.

• No Exit load and Low expense ratio.



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• To reduce the impact of equity market volatility on overall portfolio.

• Provide active exposure to interest rate.

• Tax efficient returns over medium to long term.

• Free to withdraw investment anytime.

Why to invest in Bond Fund


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• Offers a solution for all your long term debt investment needs.

• Minimize credit risk in your portfolio.

• Low expense ratio.

• No exit load.

Why Quantum Dynamic Bond Fund


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Dividend option:

• Investors receive dividends tax free. However mutual fund has to pay dividend distribution tax.

Growth option:

• Investor can take indexation benefit if investing for more than three years. It reduces the total taxable amount relative to inflation.

Taxation benefits


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• If interest rates expected to rise - Invest in short term securities that mature early and re-invest the proceeds at higher rate.

• If interest rates expected to fall - Invest in long term bonds to lock in high interest rates. If interest rates fall subsequently the value of bond will increase providing capital growth.

Active Interest Rate Management


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• Long term bond yields on downward trajectory, making Risk-Return profile favorable towards bonds.

• Bonds have limited downside due to higher interest accruals and significant upside potential in near future.

• Rising Equity Market + High Interest Rate = Favorable Time to Invest in Debt Funds.

• Expected Political and Macro stability will ensure increased capital inflows.

QDBF: Why Now?


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QDBF - Asset Allocation


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• Experienced Fund Management Team with proven track record of managing Debt products.

• In-house research capability- not dependent on third party research.

• Investment philosophy is based on SLR principle in that order. (Safety Liquidity Return)

• Investors primarily exposed to interest rate risk with minimal credit / illiquidity risk in the portfolio.

Research & Resources


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Risk Management Strategies

Key Risks Risk Mitigation Strategies

Interest Rate Risk

• Active interest rate management through altering maturity profile at appropriate time.

• Macro research team actively tracks and forecasts interest rate outlook.

Credit and Default Risk

• Invest major portion in securities issued by Government and top rated PSU companies.

• Credit analysts track the credit profile of the issuer and project likely credit changes.

Liquidity Risk • Investment team determine the time taken to

liquidate any position based on market trades.


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NFO Details - How to Invest

Scheme Options Growth Option Monthly Dividend Payout Option Monthly Dividend Re-investment Option.

NFO Period 29th April 2015 to 13th May 2015

Lock-in Period Nil

Expense Ratio Up to 1.00%

Benchmark Index Crisil Composite Bond Fund Index

How to Invest

New investors – Offline, MF Utility, ASBA Existing investors – Offline, Online, MF Utility, ASBA


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Mutual fund investments are subject to market risks, read all scheme related documents carefully.

Investment Objective: The investment objective of Quantum Dynamic Bond Fund (QDBF) is to generate income and capital

appreciation through active management of a portfolio consisting of short term and long term debt and money market

instruments. Asset Allocation pattern: Government Bond/Bills: 25-100%, PSU Bonds: 0-50%, Certificate of Deposits,

Commercial Paper, Short Term Debt Instruments: 0-75% and CBLO/ Repos: 0-100%.Terms of Issue: QDBF is An Open

Ended Debt Scheme with Defined Credit Exposure and Dynamic Maturity Profile offering Growth, Monthly Dividend Re-

investment and Monthly Dividend Payout Options. The units will be available at Rs. 10 per unit during the NFO period.

Minimum Application Amount: Rs.500 and in multiples of Rs 1. thereafter.. Entry Load: N.A. Exit Load: Nil.

Risk Factors: Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme(s) 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(s) 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(s). 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.

Disclaimer


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http://www.quantummf.com/





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. 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.

15 Quantum Dynamic Bond Fund

Disclaimer continued

Quantum Fixed Income Team - Mutual Fund · • Debt Funds or Income Funds are mutual fund schemes...

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