The stock markets have seen their fair share of volatility in recent weeks. Concerns over interest rate cuts, geopolitical tensions, and looming elections have all contributed to a somewhat unpredictable environment. If you’re an investor who wants a safer approach while navigating these uncertainties, you might want to consider a hybrid fund. In this blog, we’re spotlighting a hidden gem in the world of mutual funds that has delivered astonishing returns: Quant Absolute Fund.
Quant Absolute Fund is classified as an Aggressive Hybrid Fund, which is an open-ended scheme investing predominantly in equity and equity-related instruments. The fund also includes a moderate exposure to debt securities and money market instruments, offering a balanced approach to risk and return.
The primary goal of Quant Absolute Fund is to generate income or capital appreciation by investing mainly in equity and equity-related instruments, with a smaller focus on debt securities and money market instruments. While there’s no guarantee that the investment objective will be achieved, the fund’s strategy aims to strike a balance between risk and reward.
Here’s how Quant Absolute Fund allocates its assets under normal circumstances:
Under normal circumstances, the asset allocation pattern will be as follows | Indicative allocations (% of total assets) | Risk Profile | |
Instruments | Min | Max | High/Medium/Low |
Equity and equity related instruments | 65 | 80 | Very High |
Debt and money market instruments | 20 | 35 | Low to Medium |
Units issues by REITS/InvITS | 0 | 10 | Very High |
Quant Absolute Fund primarily invests in equity instruments, with a moderate amount allocated to debt and money market instruments. The equity strategy aims to build a diversified portfolio across various industries, economic sectors, and market capitalizations to maintain an acceptable risk-reward balance. The debt strategy focuses on generating income and minimizing return volatility.
An SIP (Systematic Investment Plan) of Rs 5000 per month in the Quant Absolute Fund since its inception in 2013 would have resulted in an investment value of Rs 6.8 lakh. As of April 26, 2024, the corpus would have grown to an impressive Rs 24 lakh, yielding a profit of Rs 17.2 lakh. This translates to an absolute return of 252.69% since inception—a remarkable achievement for any hybrid fund.
If you’re looking for a hybrid fund that balances equity and debt while offering substantial returns, Quant Absolute Fund is a hidden gem worth exploring. With a unique investment strategy and a history of delivering strong returns, it’s a fund that can cater to a wide range of investment goals and risk appetites.
Ready to watch your savings grow? Try our SIP Calculator today and unlock the potential of disciplined investing. Perfect for planning your financial future. Start now!
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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