Why Are Schemes Of Quant Mutual Fund Topping The Charts? | ETMONEY
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- เผยแพร่เมื่อ 15 มิ.ย. 2024
- A few weeks back, we received an interesting question on the ET Money youtube channel. We were asked why the different schemes of Quant AMC, their multi-cap fund, their tax saver, mid-cap, small-cap, why are most of their schemes suddenly delivering the highest returns within their respective fund categories?
If you haven’t been keeping a track, the equity schemes of Quant mutual fund have done extremely well over the last one year with most then ranked either 1, 2 or 3 for their category.
And in this ET Money video, we shall answer the question regarding Quant Mutual Funds.
👉 Chapters
00:00 Introduction
02:23 Quant Active Fund
08:26 Quant Small Cap Fund
12:04 Summary
#ETMONEY #QuantFunds
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Excellent video. I can confidentially say no other experts would dare to reveal such analysis. ETMoney saved ones a week of analysis and let subscribers consume the whole content in just 15 mins. 👍
Thank you Vijay Kannan
Finally, the request worked (btw team - I had requested for this nearly 6 months ago!). This was much needed as Quant isn't covered extensively in any forum. Thanks Shankar and the ET money team! I think the quant team is standing true to 'active fund management' - whether this works or not in the long run remains to be seen..
Thank you!
@@ETMONEY Yes.. i have invested in this fund..and it's really performing... 🙏
It's huge risk they are taking which is paying off for now. They just have to fail once to wipe off all the good work they have done till then.
It will always work after 10 / 20 years also. This kind of approach is only needed to beat indian growing inflation adjust to new strict SEBI rules and help simple middle class persons like us to earn and grow our hard earned money
@@gordonfernandes6873 hey are you talking about quants active fund?
Great time. I was planning to increase my sip in SBI small cap but looks like better to start the additional amount into quant funds.
Brilliant video Mr. Shankar.Thank you for educating your investors, this is what makes ET Money different and better.
You're most welcome, Satyam Dwivedi. We are investors ourselves so we try to pick up & make videos problems that we are are likely to face.
Very well researched content. I also recently saw this Quant fund name at few places as they were top performers and was wondering the same thing. So thank you for explaining everything so clearly 👌👍🏻
Glad you found it useful, Sachin KN
i just can't stop myself from liking and subscribing it.... Excellent analysis..please keep the good work going...
# Respect
Dear SN, as usual another excellent video. and i like the way you explain it with facts and figures. have become big fan of yours.
Thank you so much for your appreciation
Dear Shankarnath, another awesome video from you. I was about to invest in Quant Active Fund and doing my own research of the fund house and the funds performance. Your video couldn’t come anytime better than is. You’ve again explained the facts in your own master class style! Also, I’m wondering if you’ve any plans to provide access to your application outside India for NRI s to use and invest in funds? The amount of quality work you’re doing in providing financial literacy for MF category is second to none and I don’t believe anyone has done this in the past and will beat your quality in the future !! Thanks Again!
Thank you very much. Glad to know that the video was timely and useful to you!
Which site did you use to invest in Quant funds?
@@arunnair7584 ETMONEY
Thanks for your video on Quant funds. I was in a dilemma as the funds history was short. I checked about quant fund in your ET money as I always do yet I couldn't come to a conclusion. This video has helped me to gain a great understanding about Quant funds
Glad it was helpful! Thx!
Excellent analysis... Now I am confident...I did a good thing by choosing quant over other traditional mutual funds 😀
You are genius and very competent person when you analyse mutual funds
Thank you for your vote of confidence. Always feels good to receive appreciation.
Kudos to your in depth analysis. Only thing stopping me from subscribing to Genius is your association with economic times.
I have bought Quant infra direct fund 3 months ago and it is going superb amidst bad market conditions. I have Quant smallcap as well which is beaten down a little bit, but I have confidence in it.
Hello brother i am going to start investing in that mutual fund...quant infrastructure direct growth....how is your fund going on?
Thank You Shankar for such elabrated Video! We watch your videos regularly. Such precise and amazing content is difficult to find now a days! Thank you once again to Shankar and ET Money Team!
So nice of you. Thank you for your kind appreciation.
Brilliant. Analysis like this is what is required for retail Investors. Wondering why there is no VRO Rating for Quant Active Fund yet? The Fund itself has a decent age of 9 yrs. May be it's the value gradient that it has shown in the recent years that disallows bracketing their methods into accepted norms.
Thank you. Possible reason maybe that the fund has been managed by Quant MF for less than 3 years only. Pls recall, it was Escorts MF earlier
Thanks a lot ET money. I have holdings in Quant mutual fund. So this really helped me cement my belief
Thanks!
As always ET Money videos are outstanding and much genuine. Thank you Shankar and team for your great presentation.
:) Thanks for your kind appreciation
Awesome.. nice detailed explanation without fancy jargons... Grt 👍
Thanks a lot 😊
Dear ETMoney and to Shakarnath, thank you so much for this video. Very indepth analysis and the research done by the team. Well presented as usual by Shankarnath.
Our pleasure! Thank you for the appreciation, Sundaram Gokulnath
Thanks much for the insightful video 🙏
I needed this personally
Especially coming from you
Thank you 🙏
Most welcome
thanks i found this video after i invested in Quant infrastruce, ESG along with motilal oswal mid cap, Sbi consumption,UTI transportation.
I was checking the Quant performance then I Realized this fund outperform all fund management. I searched for quant mutual fund on TH-cam and i watched your video it is really helpful
Thank you. Happy to know this was helpful to you
Your videos are always informative! I request you to please share video on allocation ratio of mutual funds into different category into equity like large, mid, small, value fund, etc. Though I understand it cannot be common for all. But for average investor it will help. It will also help investors to take better
decision as there are large number of funds. Also please suggest where can we get trailing returns of mutual funds along with comparison with other funds. Also please suggest good books on mutual fund.
Thank you. The allocation ratio cannot be generalized to serve everyone as some needs an aggressive split while someone else is too conservative. Further, allocation depends on a time basis (20 year old vs 60 year old) and also on a goal basis (saving for retirement vs saving for buying a 1st house post marriage). We are coming up with something clever on ETMONEY app this month which should help with that. Stay tuned
Wow! What a brilliant analysis of Quant AMC. 🙌🙏
Loved the video, was looking for a video like this on Quant AMC. This does make it seem like they do have a strategy than dumb luck. If that strategy is future-proof or not who's to say. But it is not LUCK. That helps a lot, and this fund can definitely be added in small quantities as a hedge against all the other funds, which mostly have the same 10 top-performing stocks in their portfolios.
Thank you!
They follow the same principle as Jim Simmon's fund (Medallion) does. As the name suggests, Quant AMC uses advanced mathematical & statistical models to predicts price movement - very unconventional for a public fund house though
Right
I think same like you.
Unlike medallion this fund is a mutual fund open to public which raises suspicion
Great video as always , a video on debt funds and how to choose them with a live example(i know u have a video on basics ) or a mf advisor on how bonds are picked by them would be a great watch !
Thank you
Mr Shankar Nath chooses the most interesting Topics. Love your videos. Your Expertise reflects.
Thank you very much. Glad you liked it
Hi Shankarnath ji, just a correction in what you mentioned about the top 10 stocks that Qunat Active Fund holds, there is ICICI Bank which was present in March 2020 and is still in Nov 2021 :)
Other than this, it was truly a knowledge full and enjoyable video, Thanks a lot. Please keep us enlightened through your reserached videos. Thanks once again
Thank you for your appreciation. Nice spot on ICICI Bank, but as we've heard before: bade bade deshon mein aisi choti choti galtiyan hoti rehti hain :)
Hello Team,
Thanks for very informative video on Quant funds. Will be really great to have an informative video from ET money on Smallcase.
Thank you
One of the most underrated channel.
Well researched content.
Please do share more such contents in future
Thank you Samrat Gaikwad
Quant Small cap is in my watchlist. Thank you for your nice explanation 👍
You are welcome 😊
Shankar ji, very informative. Had this doubt since long time. Thanks.
Thank you Vijai A
im always waiting for your videos because im learning alot from that. Thanks
Happy to help, Muhammad Ali. We too learn quite to a bit in the process of researching for these topics
Excellently explained. It's extremely good analysis
Thank you
Thanks ETmoney for the insightful video.. Recently I observed that funds in Axis mutual fund have under performed vs the benchmark indices.. It would be very helpful if your team can research and share valuable insights.
Hello Abhas, for what period (number of months) are you evaluating this "under performance" of Axis MF?
Agree all bluechip, midcap and small cap are well below than others from last 2 years.
@@skmahatwa I was thinking to start Axis Mid & small Cap.. if it's not doing good for 2 years what do u suggest?
@@ETMONEY I was thinking to start Axis Mid & small Cap.. if it's not doing good for 2 years what do u suggest?
Great to see such video.i do have invested in small cap Quant mutual fund.But we need how t
It works.
Thank you
Great job guys as always... keep rocking
Thanks a ton
excellent..just the kind of insights i was looking for !
Thanks
Have started SIP in Quant in April'21...
Amazing in last 2-3 days I have learnt so much on this channel wish I was here 10 years ago 😭 kind lost a lot of time 😬
:) The 2nd best time to start is now. Welcome!
@@ETMONEY 😄
Worth a try as an alternate to swing trading as well!
Very informative video, loved it. I was wondering if its correct to say/assume that Quant funds follow a momentum strategy? I have Axis Bluechip and Axis Small Cap and I am now wondering if I should switch to Quant Active fund ?
I have strd in axis small cap .. this month only.. quant expense ratio is 0 .56
Thank you very much. Yes, there seems to be seeds of momentum in their fund although in an interview, their team did not clarify that they use momentum signals.
Thanks for the detailed review of Quant MF. Though this AMC is not much favourite of most of investors. I have started investing in Quant Tax plan since Jun21. Since my investment in ABSL tax saver fund completed three years, I have withdrawn step by step and start investing in this fund. One uniqueness I found in this is most of the AMCs top holding will be Financials but this holds in Pharma while I start ivnesting now in service sector.
Most welcome. Quant schemes tend to change sectoral allocation fasters than most other schemes. You might not see pharma as the top sector a few short months from now.
@@ETMONEY Yes,
Much awaited. Keep it up ❤️🔥
Thank you! Will do!
Excellent.. mind blowing analysis !!
Thanks. Glad you found it useful
I hold both quant funds. currently giving 20% returns. will add quant tax plan also this year. traditional funds from axis, sbi, hdfc, etc. are waste of money. actively managed funds are best in the current volatile indian stock market.
Another insightful video.. Thank you so much.
Can you please prepare similar video on PGIM India AMC?
Most welcome
I feel Quant uses some form of "Zack's rank" tailored for Indian equity . I'm a data scientist and for the past few months I've been doing mini research on what factors actually pushes the stock price . surprisingly none of the traditional annual financial factors actually decide stock price rise . Only 2 things that decide price rise is "The current price" and "Graham number" (Here the PE multiplier may not be 15 , it can be PE of the stock at which it trades the most) . This isn't a concluding result ... but it kinda feels like Stock market doesn't really follow the economy 8/10 . As Rakesh Jhunjunwala say's "It's important what you buy , but it's more important at what price do you buy" ... makes sense
Hi. We get to talk to many people in this industry and if not more, everyone has a different template to fund management. Price is certainly a much used variable, not as much with the Graham number (incidentally, very few people even make reference to Ben Graham).
What is Graham number
@Sandeep Gupta imo trust your fund manager not the brand
As long as it gives good returns it's okay.after all we put money to earn profit and quant AMC is also growing rapidly now more than 1b dollar aum.i have also invested in quant active fund and it is only fund in my portfolio which was green even during Russia Ukraine crisis erupted while all other reputed funds returns went red.
Dear Team, kindly make a detailed video on being a so called star fund manager Mr.Ajay Garg, managing ABSL Tax Relief 96 is literally under performing in ELSS category,even though the underlying shares are seems like highly convicted.
Excellent analysis team. It would be great if you could post such analysis for Axis and Mirae fund house or their schemes.
Thank you
Superb original vdo 👍....
My conclusion Quant needs to demonstrate this isn't aflash in the pan !!
Anyone has data on how they performed during the Oct Dec qtr...
Thank you
This video has earned a subscriber 🎉
Nice video .. great presentation and presentor
well explained with an insight understanding
Excellent video , crisp and clear information..
Thank you
Amazing video. Fully informative. Made me feel like I'm sitting in office.
Glad you liked it! Thank you
Thank you for your analysis which I am having for a while in mind.
I am having QAUNT Multi Asset fund in ET money, whether its really having multi asset allocation?
Thank you. You can check out Quant Multi-Asset Fund's holding on ET Money at www.etmoney.com/mutual-funds/quant-multi-asset-fund-direct-growth/16918
Excellent video. Very balanced research view.
Much appreciated!
What great and well researched video, quality stuff
Glad it was helpful! Thx
Hindi madhe asal tar lavkar samzel
Always loved your talks. 👍
Appreciate that! Thanks for your words of appreciation and encouragement
Is it highly dependent on Fund Manager ? Or the AMC's mentality ?
Nicely explained.
Excellent video.. Can we have updated video since this one js 2 years old
Good perspective on QUANT MF. Historically some smaller & young fund houses Out performed but later fizzled out. We have to watch their performance continuously and exit at appropriate time. ET money ranking is taken as a sort of ADVICE to buy, and ET money should advise when to EXIT any fund.
0
What do you mean fizzled out?
excellent video....your videos r insightful and have learnt a lot from them. Have recently started investing in Quant MFs and they have done very well...but there are testing times ahead so lets see.
Thank you very much
Great Video much needed. But is this fund house recommended by ETMoney or there is any risk ?
Thank you
Much useful. Thank you.
You're welcome!
I'm planning to invest in quant. It's going well now. What about the future in next five years? Will it perform the same? Will I atleast get my capital if it fails??
@et money. If turnover ratio is high like this - will this increase expense ratio of mutual fund gradually in coming years. Is expense ratio related to turnover
My only worry is that the "favourite fund/ fund house" does not sustain its position over the long term . I invested in Franklin India Tax Shield over a decade ago when the fund was among the top 2 and only terminated my SIP 6 months ago. I also invested in their debt schemes when they were highly recommended. Yeah we all know how that went. Similarly even Axis LTE was a darling of MF consultants till a year ago. I'm glad I resisted the urge to invest in it. Today it is ranked 11th; although it still has a 4 star rating from ET money. So, not all that bad. DSP micro cap was another darling that is doing so-so right now. I am glad i withdrew from it before peaks. Lesson: don't put all your money into the top ranking funds basket.
1. Yes, that true for everything. No company can consistently give high growth, no person can give the same level of work focus for years, no athlete can run at the same pace all the time and no fund house can be #1 all the time. We made a video on "Chasing Mutual Fund Performance" about an year back that explained this with data
2. It's interesting that you brought Axis MF into the discussion. Let me explain with an example.
Say there are two funds - Axis and Baxis. Axis rose by 50% from Apr 2020 to Mar 2021 while Baxis rose by 75%. Now this is what 99% of investors are seeing and concluding that Baxis is the better fund. But now - I'll have an additional piece of information for you. Axis fell by 20% from Feb 2020 to Apr 2020 while Baxis fell by 35%. What this means is that on an absolute basis - Axis went up by 20%, while Baxis was up by 14% - in the 14 month period.
I found this very interesting because the fact that Axis did not fall by much (which investors should be happy about) .. it actually came to haunt Axis because it showed their 50% in weaker light relative to the 75% that Baxis delivered.
Now the above is not an illustration but is actually true data. In the 03-Feb-2020 to 03-Apr-2020 period, the Axis Bluechip Fund, the Axis Smallcap Fund and the Axis Flexicap Fund fell the least amongst all schemes in their respective category.
This probably answers why Axis Long Term Equity is higher than what one might anticipate in the ETMONEY Ranking because our algorithm gives credence to other factors like consistency, downfall protection etc.
Sorry for the long reply. Hope this helps.
@@ETMONEY Cant believe you take effort and time to reply with data. Respect
@@boldschool6308 School mein maine sirf English and Maths sikha :) Thank you
@@ETMONEY thank you for the detailed reply. I agree with your point about Axis. I always look at 3 year and 5 year performance to select a fund.
@@gazpachopolice7211 The other problem I think they will encounter is now that everyone will be shifting their funds to Quant due to recent returns. They may find it hard to do the high level of churning because of bigger AUM. E.g 600 cr vs 12000 cr
I have invested in Quant Small Cap in January 2021, since then got a return of 91%, however the absolute fund is not doing that good.
Could you please elaborate??
This is beyond excellent Sir 👍
Thank you! Cheers!
Thank you…I am a beneficiary of Quant funds. ET money’s videos are great 👍
Glad you like them!
@@ETMONEY I love them …watched liked and commented on almost all of them
How much you invested and I'm a beginner should i invest in it for a period 1 or 3 years just to park my money and grow it?
@@Sahilkhan-fq8xs I have invested approximately 2 lakh. Invest via SIP route and keep topping up when market goes down or when when you have excess money and hold it for atleast > 5 years
Dear Sir,
Why Navi Mutual Fund house isn't available for participation on ET Money app ?
tq sir for this quality content
500% portfolio turnover.....Fund Manager Subah uth ke yehi sochta hai aaj kya kharidun..aaj kya bech dun...those chasing returns without understanding risk can invest in the fund....Ratios are lagging indicators...performance kewal momentum play se aa rahi hai...ratio apne aap acche ho jate hain jab short term out performance itni hogi.. jab tak AUM kam hai tab tak ye strategy short term me kaam kar sakti hai but not in log run...but agar aap ka mindset active trading wala hai, aap momentum strategy play karna chahte ho but aap time na hone ki wajah se trade nahi kar pa rahe to ye fund sahi hai ;)
If u r planning to for 10 years then it is fine right ?
Totally on point!!!
Thanks!
very nice explanation
They are at least trying their best to generate performance unlike big players like HDFC, ICICI, Aditya Birla who despite underperformance are charging very high expense ratio to spend more on advertisement, sales personals to attract customers. Prashant jain always talk about value investing, PSU etc but HDFC bought Paytm share and now been forced to sell
After watching this video I visited ET money app and look in for the Quant Active Fund. I found the following figures in the app which are not matching with whats mentioned in the video.
1. Age is showing 9+ years
2. As of multicap fund it should invest min. 25% in small cap, but its showing 17% only
3. 10Y return is showing 31%
I liked ET money app, but there are few bugs(might not be the bug exactly as app might be showing what it received from Quant API) like above which need to address quickly. Lots of funds showing incorrect age I guess.
Not finalized to invest through the app for now, will look forward once the conflicts got resolved.
Thanks much for sharing knowledge on Quant fund house.
Thanks for your appreciation although it did feel very stale given the critical nature of the enquiries. Seems I have gotten too old and my education in tolerance & on seeking-answers-before-accusing is past its prime. Anyways --
1. Age is showing 9+ years because that's what Quant MF is saying about its Active Fund (pls do a Ctrl+F with "inception date" on this webpage quantmutual.com/equity/quant-growth)
2. Curious to know - do you have any information that small cap is not 17% but 25%? If yes, please share with us
17% is what we received in the feed. The same will be seen in other publications like valueresearchonline aswell (www.valueresearchonline.com/funds/17361/quant-active-fund-direct-plan). Infact, you'll see here that the entire category is showing 16% small cap
3. 10Y return is not shown on ET Money app or etmoney.com. Can you explain where you found this piece of information from?
@@ETMONEY where I can share screen recording? (As screenshot doesn’t captured fund name)
Sure. Pls upload the video on your TH-cam channel and send us the link in the reply
@@ETMONEY here is the link to video:
th-cam.com/users/shortsrQXBv3SbNhM?feature=share
I’ve also updated my main comment for better clarity.
Thanks for sharing. I have sent the link to the product team. We can expect a response from them either today or early next week. Will keep you posted.
I check this page on my device and a couple of family member's phones and there it only shows up until 5 years (as it should have; direct plan of Quant Active fund is yet to cross 10 years)
Sir Can Kindly Add Navi AMC in ET money App Because of its Low Expense Ratio of Passive Mutual Funds.
Great video 👍🙏 but m still wondering on who should apply in quant active fund ?? Plz answer
Thank you
Great insight....seems Quant Fund Managers are working to gain the attention of more & more investors...by working around the clock and giving best of the results to investors...
Thank you
Seems only 2 guys are managing all the funds of quant. One new guy and a veteran
great video, thank you
Thanks
thanks very. useful information
Most welcome
Quant after sales provider who KFIN or CAMS. Please advice.
So they are doing positional trading with huge money backed by good research? Thanks for covering this topic.
Thanks
Great video. Is it safe to invest in one AMC? Most of my investments are in quant AMC(ELSS, Small cap)?
Or should I diversify across AMC's?
Yes, you should invest in different AMC's as all AMC's have their own strategy in business market.
Thanks for this analysis
Most welcome
Very well researched
Thanks
Brilliant Analysis 🔥
Thank you!
When the market in bull fage Quant funds performs well, and when in bear phase fell nav sharply.
B.Nagaraj.
good..what about quant flexicap fund?
Greetings Sir,
I've a question that if we're taking any scheme for probably 3 yr, so in that particular fund we'll be getting return according to yearly basis or of 3 year return. Because while reaching for the fund it shows 1st year return higher than the 3rd year return.
Returns they show are of the past 1 year or past 3 years. 15% 3 year returns mean that had you invested 10,000 3 years ago you would've got 15,208 today (at a CAGR of 15%).
And coming to your other Q, why the past 1 year returns are higher than 3 year returns for almost all of the funds is because of the Covid scenario - markets were cheaper 1 year ago than 3 years ago. Markets crashed heavily during March 2020 and then are in a increasing trend from then.
One point
Majority of funds have higher allocation for stocks beyong nifty 500 ,
Microcaps are aggressive and have higher volatility and alpha
Hi, I am confused b/w Quant, Canara Robeco, IDFC, Mahindra manu ELSS schemes. Please suggest which ELSS one to go with.
Kindly check out ET Money fund report card on our app. We have covered performance, downside protection and risk scores there
Very nice explanation. I want to know how to check sip details with folio number in quant website. Is there any way? Please answer.
Thanks. Sorry, not sure of this query. I invest in Quant Mutual Fund schemes from the ET Money app itself
@@ETMONEY ok. Thanks for your quick response
Dear Shankarnath, can you pls do a video on tax rules of MF if we are switching between two different MF of same house. Not sure if you have ever covered in your past videos. Thanks !!
Hi. This might not need a video. The rules are simple. "Switching" means selling units in scheme X and buying units in scheme Y. Which means, capital gains might be applicable in case of scheme X. Depending if X was an equity scheme or non-equity scheme, the applicable capital gain taxation will be applied as explained in this video. Hope this helps
@@ETMONEY 🙏🏻