Are Hybrid Funds an option to FDs? Things to consider...

Are Hybrid Funds an option to FDs? Things to Consider...

Speaker: Chirag Mehta, Senior Fund Manager, Alternative Investments August 13, 2021

2

Are Low & Falling FD Rates hurting your Savings?

Bank

FD interest rates

SBI

2.90% - 5.40%

HDFC

2.50% - 5.50%

14 SBI 1 year FD rate 12 10 8

ICICI

2.50% - 5.50%

Axis

2.50% - 5.75%

6

Kotak

2.50% - 5.30%

4

Data as of August 5 th 2021

2

Source: FD Interest Rates | Compare Fixed Deposit Interest Rate Today (myloancare.in) Bloomberg, SBI, Data as of July 2021

3

Despite Low Returns, bulk of Money still in FDs 53% of household savings are kept in Bank deposits

Source: Quarterly Estimates of Households’ Financial Assets and Liabilities, RBI, June 2020

4

How Efficient is India’s Preferred Saving Instrument?

Bank Fixed Deposit Pros: • Assured returns • Deposit Insurance • Loan against FD

Bank Fixed Deposit Cons: • Low returns / low real returns • Insured upto 5 lacs • Liquidity – penalty on premature withdrawal • Taxation as per tax slab

FD is a Long-term Losing Proposition Consumer Basket TOTAL SPENDING PER ANNUM

Price of gold, INR/10 grams Units ( Grams) of gold to consume my basket

BSE SENSEX Units of BSE-30 Index to consume my basket

Fixed Deposit Basket Index Value (Value of initial investment Jan 1, 1990 =1000) (SBI 1 Year Deposit Rate)* Units of FD Basket to consume my basket

1990*

2000

2010

2015

2020

CAGR

23,759

68,923

151,279

280,064

427,619

10.1%

3,409

4,528

18,268

26,335

50,104

9.4%

70

152

83

106

85

730

4,659

15,585

26,557

47,751

33

15

10

11

9

1,064

2,220

3,550

4,628

5,814

22

31

43

61

73

14.9%

6.0%

Past performance may or may not sustained in future Quarterly compounding and Tax rate on Fixed Deposit assumed to be 30%

Other Assets have Better Return Options, should you opt for them?

Asset Class Outlook: Equity

Consensus Earnings Upgrades After Many Years of Flat Growth

Source: Bloomberg As on 31st July 2021. Past Performance may or may not sustained in future

Spiking PER Overstates Valuation Given The Prior Quarter’s Gap Down

Source: Bloomberg Data as on 31st July 2021. Past Performance may or may not sustained in future

Foreign Investors Return as New Covid Cases Decline; Third Wave if any, Could Again Lead to Outflows Net Foreign Activity (USD bn)

Net Local Activity (USD bn)

Total Activity (USD bn)

Change in S&P BSE-30 TRI in that period (% ) ( % USD)

6.6 8.7 10.7 8.1 17.7 -12.0 17.5 29.4 -0.4 24.4 20.1 16.1 3.2 3.2 7.8 -4.4 14.4

0.1 -0.3 3.0 3.4 1.7 3.3 -1.2 -6.1 1.3 -3.9 -3.7 3.9 11.1 7.1 18.4 17.6 7.6

6.7 8.4 13.7 11.5 19.4 -8.7 16.3 23.3 0.9 20.5 16.4 20.0 14.3 10.3 26.2 13.2 22.0

+86.5% +20.5% +40.2% +51.6% +67.0% -60.8% +90.3% +24.2% -35.7% +24.1% -1.9% +29.2% -8.1% +0.9% +37.8% -2.0% +13.1%

23.0

-7.5

15.5

YTD 2021

6.8

7.4

July 2021 Cumulative

-1.5

0.6 2.6

+14.5% +9.0%

200.9

56.5

1.1 257.3

+0.2% +1218.9%

Period CY CY CY CY CY CY CY CY CY CY CY CY CY CY CY CY CY CY

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Past Performance may or may not sustained in future Source: Sebi.gov.in, NDSL, as of 31st July, 2021

Asset Class Outlook: Fixed Income

Interest Rates at Historic Lows 10 year Gsec

1 year Gsec

10.0%

8.0%

6.0%

4.0%

2.0%

Source – Bloomberg; Quantum Research, Data as of 31st July 2021 Past performance may or may not sustained in future

Government Borrowing to Remain Elevated Gross borrowings

Net market borrowing

Borrowing Amount in INR Billion

14000 12000

Govt Borrowings jumped after

10000 8000 6000

4000 2000 0 FY15

FY16

FY17

FY18

FY19

FY20

2021

2022 BE

Source – CMIE, Indiabudget.gov.in, Quantum Research

‘Das PUT’ in Action RBI's Bond Buying

Amount in Rs. Trillion

5.0 4.0 3.0

2.0 1.0 0.0 -1.0 FY 2013 FY 2014 FY 2015

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022* Gross Purchase

Net OMO * FY22 data is from 1st April 2021 till 26th July 2021 only Source – RBI, Quantum Research, data as of 26 th July 2021

Jun-21

Mar-21

Dec-20

Sep-20

Jun-20

Mar-20

Dec-19

Sep-19

Jun-19

CPI-Headline

Mar-19

Dec-18

Sep-18

Jun-18

Mar-18

Dec-17

Sep-17

Jun-17

Mar-17

Dec-16

Sep-16

Jun-16

Mar-16

Dec-15

Sep-15

Jun-15

Inflation breached the 6% ‘Laxman Rekha’ Core-CPI

8.0%

6.0%

4.0%

2.0%

0.0%

Source – MOSPI, Quantum Research, data as of July 2021

Asset Class Outlook: Gold

Gold is a Monetary Asset – Gold has kept up with money supply growth 1600 1400

US Money Supply - M2

Gold Prices

1200 1000 800 600 400 200 Rebased = 100

0 1974

1977

1981

1985

1989

1993

1997

2001

2005

2009

2013

2017

2021

Data as of June 2021 Source: fred.stlouisfed.org Past performance may or may not sustained in future

18

Headwind: Change in Fed stance  The US central bank signaled it will raise rates earlier than planned in 2023.

 With inflation raging, the Fed has to show awareness…

Percent change in US Consumer Price Index from a year prio

Data as of 23 July 2021. Source: fred.stlouisfed.org

Data as of May 2021. Source: Statista.com

Premature tightening could throw economic recovery off track

19

Gold’s fundamentals remain supportive  Interest rates set to remain low until 2023 and possibly beyond  Interest rate hike by central banks to lag inflation – Real interest rates to remain low to negative  Central banks continue to fund deficits / asset purchases

 Economies will need Government support in form of higher spending  US to soon unveil a massive infra spending

 A weaker dollar

Central Bank balance sheet – Total Assets

Real interest rates will continue to be under pressure

$ Trillion

USD

10 9 8 7 6 5 4 3 2 1 0

2250

12

2000

10

1750

8

1500

6

1250

4

1000

2

750

0

500

-2

250

-4

0

-6

%

 Accommodative Central banks

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

US -FED

JAPAN - BOJ

EU -ECB

CHINA - PBOC

Data as of July 2021. Source: Bloomberg

Gold price

US Real interest rate

Data as of July 2021. Source: Bloomberg

Equities or Fixed Income or Gold?

How do you pick the winning asset class?

21

It is a Challenge to Consistently Pick Winners amidst Unpredictability & Volatility 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 2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021*

Sense x 49%

Sense x 49%

Gold 26%

Sense x 83%

Gold 23%

Gold 32%

Sense x 28%

Sense x 11%

Sense x 32%

Bonds 9%

Bonds 13%

Sense x 30%

Gold 8%

Gold 16%

Gold 28%

Sensex 11%

Gold 20%

Gold 16%

Bonds 9%

Gold 24%

Sense x 19%

Bonds 7%

Gold 12%

Bonds 4%

Bonds 14%

Sensex -4%

Gold 11%

Gold 5%

Bonds 4%

Bonds 7%

Sense x -52%

Bonds 4%

Bonds 5%

Sense x -24%

Bonds 9%

Gold -5%

Gold -8%

Gold -7%

Sense x 3%

Bonds 5%

Imagine someone holding an all equity portfolio in 2008, or holding none in the equity rally that followed?

Sensex Sensex Sensex 7% 14% 17% Bonds 6%

Bonds 11%

Bonds 12%

Bonds 1% Gold -3%

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 July 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

22

Each Asset Serves a Role in a Portfolio Context

GOLD Diversifies against macro events and a store of value

FIXED INCOME

Regular income and stability

EQUITY Long term growth

23

Combine Asset Classes for better Risk Adjusted Returns One asset’s down cycle is balanced by another asset’s up cycle

Risk-Return

Equity +Debt +Gold *

Equity + Debt **

Equity

Debt

Gold

CAGR

11.13%

11.13%

12.80%

7.18%

11.45%

Annualized SD

9.37%

13.45%

22.02%

3.27%

17.34%

Maximum Drawdown

0.21

0.36

0.56

0.06

0.25

Sharpe Ratio

0.524

0.365

0.299

0.293

0.302

Time frame is November 2004 to July 2021. The period is taken from 2004 since the asset allocation weights are calculated based on normalizing the historical monthly equity and debt indicators. Given the normalization time frame used in the strategy, data availability for certain parameters beyond the time frame analyzed was a constraint. Compiled by Quantum AMC *Equity-Debt-Gold in ratio of 40-40-20. **Equity-Debt allocated in 60-40 range Based on Sensex Index, Crisil Composite Bond Fund Index, and Domestic Gold Prices Note: Past performance may or may not be sustained in the future

The most diversified strategy yields similar returns with the lower volatility, compared to a pure equity strategy

Hybrid Funds – Perception vs Reality

Hybrid Fund Mandates Vary Widely

Investors need to reconcile what suits their Risk – Return profile Type

Allocation to Equity

Allocation to fixed income

Allocation to gold

Aggressive hybrid funds

65-80

20-35

0

Balanced hybrid funds

40-60

40-60

0

Conservative hybrid funds

10-25

75-90

0

Dynamic Asset allocation/Balanced Advantage funds

0-100

0-100

0

Multi Asset allocation funds

10-80

10-80

10-80

The Missing Element .. Gold!

Gold is an effective portfolio diversifier Allocation to Equity

Allocation to fixed income

Allocation to gold

Risk-Return

Equity +Debt +Gold *

Equity + Debt **

Aggressive hybrid funds

CAGR

11.13%

11.13%

Balanced hybrid funds

Annualized SD

9.37%

13.45%

Maximum Drawdown

0.21%

0.36%

Sharpe Ratio

0.524

0.365

Type

Conservative hybrid funds Dynamic Asset allocation/Bal anced Advantage funds Multi Asset allocation funds

Time frame is November 2004 to July 2021. The period is taken from 2004 since the asset allocation weights are calculated based on normalizing the historical monthly equity and debt indicators. Given the normalization time frame used in the strategy, data availability for certain parameters beyond the time frame analyzed was a constraint. Compiled by Quantum AMC *Equity-Debt-Gold in ratio of 40-40-20. **Equity-Debt allocated in 60-40 range. Based on Sensex Index, Crisil Composite Bond Fund Index, and Domestic Gold Prices Note: Past performance may or may not be sustained in the future

Investors’ favorite Aggressive hybrid funds (erstwhile Balanced funds) are not as balanced as perceived Higher returns are accompanied with higher risks

Average annual return Best year Worst year % of years with a loss

CRISIL Hybrid 35+65 Aggressive Index 12% 75% -41% 17%

S&P BSE 30 TRI 14% 118% -58% 23% Source: CRISIL, S&P Time frame of data is 31 st July 2007 to 31st July 2021

• There has been a big divergence in investor’s perception of these funds and reality • With minimum 65% allocation to equities, investing in these funds is as good as investing in a pure equity fund!

• Unsuitable for conservative investors looking to move out of FDs

The Aggressive Hybrid category took on higher risks, comparable to the Large cap equity category, and failed to minimize downside. On the other hand, the Multi Asset category of funds gave better risk adjusted returns and minimized the downside Average category performance 200.00 150.00 100.00 50.00 0.00 -50.00 -100.00 03-Jan-05 To 10-May06

10-May-06 To 14-Jun06

14-Jun-06 To 08-Jan08

Aggressive Hybrid Fund

08-Jan-08 To 09-Mar09

09-Mar-09 To 05-Nov10

05-Nov-10 To 20-Dec11

Balanced Advantage

20-Dec-11 To 03-Mar15

03-Mar-15 To 25-Feb16

Multi Asset Allocation

25-Feb-16 To 14-Jan20

14-Jan-20 To 23-Mar20

23-Mar-20 To 06-Aug21

Large Cap Fund

Source: Ace MF Past performance may or may not be sustained in the future Note: Off late, performance divergence between MAA category and other Hybrid/Large cap category has been reducing on account of Equity bias of most MAA funds

Most Multi Asset Funds are also biased towards Equities - Does that match your risk appetite?

Equity allocation in benchmark Multi Asset Category Average

60

Multi Asset Category Maximum

70

Multi Asset Category Minimum

40

Quantum Multi Asset Fund of Funds

40

Asset allocation should be Unbiased, Dynamic & Agile

QMAFOF: Unbiased Asset Allocation…

Not biased to any particular asset class..

QMAFOF invests across Asset Classes : Equity, Debt and Gold Diversification across asset classes and within asset classes by investments is done through schemes of Quantum Mutual Fund

Asset class Equity

Range of Exposure

Fund

25-65%

Quantum Long Term Equity Value Fund, Quantum Nifty ETF, Quantum India ESG Equity Fund

Debt

25-65%

Gold

10-20%

Quantum Liquid Fund, Quantum Dynamic Bond Fund Quantum Gold Fund (ETF)

QMAFOF: Dynamic Asset Allocation..

Research backed process & discipline Ideal asset allocation is not static Asset allocation needs to change depending on an asset class’s relative performance vis-à-vis other asset class.

Portfolio allocation between the units of equity, debt/ money markets and gold schemes broadly depends on the relative valuations between the asset classes Relative valuations are determined by evaluation of various influencing factors: •

• •

Price/Earnings Ratio relative to historical averages;

The relationship between Earnings Yield to Bond Yield relative to historical averages; Macroeconomic factors prevailing globally, and within India

Asset Class Equity Fixed Income Gold Cash (Net)

Allocation (% of net Assets) 25.99% 55.64% 14.60% 3.77%

Scheme Quantum Long Term Equity Value Fund Quantum Nifty Fund (ETF)

Allocation (% of net Assets) 12.13% 10.98%

Quantum Liquid Fund

42.37%

Quantum Dynamic Bond Fund

13.27%

Quantum Gold Fund (ETF)

14.60%

Quantum India Esg Equity Fund

2.88% Data as of July 2021

Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21

QMAFOF: Agile Asset Allocation..

Equity allocation Sensex TRI

65.00% 90000

60.00%

75000

55.00%

50.00% 60000

45.00% 45000

40.00% 30000

35.00%

30.00% 15000

25.00% 0

Data as of July 2021; Source: Quantum MF Note: Past performance may or may not be sustained in future

34

90% of the time, you would have been better off than a FD 260 250 240 230 220 210

Total Days: 3307 Down Days vs SBI FD : 336 Returns since inception: 9.63% Standard Deviation : 5.93%

Quantum Multi Asset Fund of Funds SBI 1 year deposit CRISIL Composite Bond Fund Index (20%) + S&P BSE Total Return Index (40%) + CRISIL Liquid Index(25%) + Domestic price of Gold (15%)

200

N 190 A 180 V 170 160 150

140 130 120 110

(Base = 100, as on 11th July 2012)

100 90 11-Jul-12

Period

31-Jul-21

Past performance may or may not be sustained in future. Data as on 31st July, 2021. This graph should be reviewed in conjunction with detailed performance of the scheme provided on slide number 36. The comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to invest. Investments in Quantum Multi Asset Fund of Funds / 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 Quantum Multi Asset Fu nd of Funds / mutual funds investment.

Investment in Quantum Multi Asset Fund of Funds as compared to Fixed Deposits carry moderately high risk, different tax treat ment and subject to market risk and any investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor. Source – Bloomberg, Quantum AMC

35

86% of the time, you would have been better off on a 3-Year Rolling Basis 16% 14% 12%

Total Days : 2212 Down Days vs SBI FB : 306 Down Days % : 14

QMAFOF 3 years rolling returns SBI FD 3 years rolling returns CRISIL Composite Bond Fund Index (20%) + S&P BSE Total Return Index (40%) + CRISIL Liquid Index(25%) + Domestic price of Gold (15%) 3 years rolling returns

10% 8% 6% 4%

0%

July, 15 August, 15 September,…

October, 15 November,…

December,…

January, 16 February, 16 March, 16 April, 16 May, 16 June, 16 July, 16 August, 16 September,…

October, 16 November,…

December,…

January, 17 February, 17 March, 17 April, 17 May, 17 June, 17 July, 17 August, 17 September,…

October, 17 November,…

December,…

January, 18 February, 18 March, 18 April, 18 May, 18 June, 18 July, 18 August, 18 September,…

October, 18 November,…

December,…

January, 19 February, 19 March, 19 April, 19 May, 19 June, 19 July, 19 August, 19 September,…

October, 19 November,…

December,…

January, 20 February, 20 March, 20 April, 20 May, 20 June, 20 July, 20 August, 20 September,…

October, 20 November,…

December,…

January, 21 February, 21 March, 21 April, 21 May, 21 June, 21 July, 21

2%

Past performance may or may not be sustained in future. This graph should be reviewed in conjunction with detailed performance of the scheme provided on slide number 36.

The comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to i nvest. Investments in Quantum Multi Asset Fund of Funds / 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 Quantum Multi Asset Fund of Funds / mutual funds investment. Investment in Quantum Multi Asset Fund of Funds as compared to Fixed Deposits 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. Source – Bloomberg, Quantum AMC

Performance of Quantum Multi Asset Fund of Funds Direct Plan – Growth Option The Scheme is co-managed by Mr. Chirag Mehta and Mr. Nilesh Shetty since July 11, 2012.

Current Value of 10,000 Invested at the beginning of a given period

Period

Scheme Returns (%) 0

Benchmark Returns (%)#

S&P BSE Sensex TRI Returns (%)

Scheme (Rs)

Benchmark (Rs)#

S&P BSE Sensex TRI (Rs.)

1 year

12.78%

15.59%

41.55%

11,274

11,555

14,141

3 years

9.61%

11.95%

13.14%

13,167

14,031

14,484

5 years

8.66%

10.80%

14.73%

15,157

16,708

19,896

7 years

8.68%

10.03%

12.05%

17,909

19,526

22,180

Since Inception (11th July 2012)

9.63%

10.63%

14.45%

23,000

24,979

33,974

Past performance may or may not be sustained in the future. Load is not taken into consideration in scheme returns calculation. Data as of 31st July 2021. Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR). # Indicates CRISIL Composite Bond Fund Index (20%) + S&P BSE SENSEX Total Return Index (40%) + CRISIL Liquid Index(25%) + Domestic price of Gold (15%). It is a customized index and it is rebalanced daily. For performance of other Schemes Managed by Mr. Chirag Mehta please see slide number 44 and 45 and for performance of other Schemes Managed by Mr. Nilesh Shetty please see slide number 43.

37

Based on Rolling Returns, There isn’t a single 3-year period since QMAFOF’s inception when it posted a negative return QMAF 3 year Rolling Returns as of July 2021

Minimum Return Maximum Return Average Return

1.54% 13.63% 8.79%

Past performance may or may not be sustained in future. This table should be reviewed in conjunction with detailed performance of the scheme provided on slide number 36. The comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to inv est. Investments in Quantum Multi Asset Fund of Funds / mutual funds should not be construed as a promise, guarantee on or a forecast of any minimum retu rns. Unlike fixed deposit with Banks there is no capital protection guarantee or assurance of any return in Quantum Multi Asset Fund of Funds / mutual funds investment. Investment in Quantum Multi Asset Fund of Funds as compared to Fixed Deposits 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. Source – Quantum AMC

Asset Class Performance & QMAFOF Quantum Multi Asset Fund of Funds 400

350

300

Quantum Multi Asset Fund of Funds CRISIL Composite Bond Fund Index (20%) + S&P BSE Total Return Index (40%) + CRISIL Liquid Index(25%) + Domestic price of Gold (15%) S&P BSE Sensex Total Return Index Crisil Composite Bond Fund Index Crisil Liquid Total Return Index

N 250 A V

Domestic price of Gold

200

150

100

50 11-Jul-12

(Base = 100, as on 11th July 2012)

Period

31-Jul-21

The performance shown in the graph should be reviewed in conjunction with detailed performance of the scheme provided on slid e number 36, Time Period: July 11,2012 to July 30 2021. Note: Past performance may or may not be sustained in future

QMAFOF has not changed course - may give less returns than other hybrid funds in bull markets but importantly has protected downsides better Average category returns vs QMAFOF 100.00

80.00

60.00

40.00

20.00

0.00

-20.00

-40.00 03-Mar-15 To 25-Feb-16

25-Feb-16 To 14-Jan-20

14-Jan-20 To 23-Mar-20

23-Mar-20 To 06-Aug-21

Bear Phase

Bull Phase

Bear Phase

Bull Phase

Aggressive Hybrid Fund

Balanced Advantage

Multi Asset Allocation

Quantum Multi Asset FOF Source: ACE MF Past performance may or may not be sustained in future

40

Options to FDs – What are we looking for?

Market linked Returns Lower Volatility Better Predictability Lower Downside

41

Consider an option of QMAFOF before you book your next FD Diversifies across asset classes – which mitigates risk inherent of a particular asset class and provides risk adjusted long term 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” Better and a more tax efficient option for investors who park their money in long term FDs (3 years and above)

Aims at reducing volatility of returns Note: Unlike Fixed Deposit with Banks there is no capital protection guarantee or assurance of any return in Quantum Multi Asset Fund.

Investments in Quantum Multi Asset Fund as compared to Fixed Deposit carry “moderately” high risk and is subject to market risk

42

Make a prudent choice!

It’s time you reconsider your FD which may be a losing proportion in terms of inflation and make way for a multi asset allocation strategy option which has the potential to provide a boost of long-term risk adjusted returns with measured equity allocations while minimizing downside risk from the debt and gold allocations..

Other Schemes managed by Nilesh Shetty Quantum Long Term Equity Value Fund

Mr. Sorbh Gupta effective from December 1, 2020.Co-managing with Mr. Nilesh Shetty effective from March 28, 2011

Period

1 year

Scheme Returns (%)

3 years

Benchmark Scheme Benchmark Returns (%) Returns (%) Returns (%) # #

5 years

Scheme Benchmark Returns (%) Returns (%) #

Quantum Long Term Equity Value Fund–Direct Plan (Gr)

55.45%

49.77%

11.21%

13.60%

10.94%

14.66%

Quantum Long Term Equity Value Fund–Regular Plan (Gr)

54.67%

49.77%

10.72%

13.60%

NA

NA

Past performance may or may not be sustained in the future. Load is not taken into consideration in Scheme Return Calculation. Data as of 31st July ,2021 #BSE 200 TRI. Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Sorbh Gupta & Mr. Nilesh Shetty manages 2 schemes of Quantum Mutual Fund.

Other Schemes managed by Mr. Chirag Mehta Quantum Gold Fund

Mr. Chirag Mehta is managing the scheme effective from May 1, 2009. Ms. Ghazal Jain is co-managing the scheme effective from June 2, 2020 Period 1 year 3 years 5 years

Scheme Returns (%) Quantum Gold Fund (Gr)

-10.23%

Benchmark Scheme Benchmark Returns (%) Returns (%) Returns (%) # #

-9.59%

16.62%

17.72%

Scheme Benchmark Returns (%) Returns (%) #

7.49%

8.53%

Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data as of 31st July ,2021 Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 Schemes and Ms. Ghazal Jain manages 2 Schemes of the Quantum Mutual Fund. The Scheme being Exchange Traded Fund has one plan to invest through stock exchange and having a single expense structure

Quantum Gold Savings Fund

Mr. Chirag Mehta is managing the scheme effective from May 19, 2011. Ms. Ghazal Jain is co-managing the scheme effective from June 2, 2020 Period 1 year 3 years 5 years

Scheme Returns (%)

Benchmark Scheme Benchmark Returns (%) Returns (%) Returns (%) # #

Scheme Returns (%)

Benchmark Returns (%) #

Quantum Gold Savings Fund– Direct Plan (Gr)

-11.24%

-9.59%

16.21%

17.72%

8.23%

8.53%

Quantum Gold Savings Fund– Regular Plan (Gr)

-11.33%

-9.59%

16.08%

17.72%

NA

NA

Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data as of 31st July 2021 Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 Schemes and Ms. Ghazal Jain manages 2 Schemes of the Quantum Mutual Fund.

Other Schemes managed by Mr. Chirag Mehta Quantum India ESG Equity Fund

Mr. Chirag Mehta effective from July 12, 2019.Co-managing with Ms. Sneha Joshi effective from July 12, 2019 Period

Quantum India ESG Equity Fund – Direct Plan (Gr) Quantum India ESG Equity Fund – Regular Plan (Gr)

1 year

3 years

5 years

Scheme Returns (%)

Benchmark Returns (%) #

Scheme Returns (%)

Benchmark Returns (%) #

Scheme Returns (%)

Benchmark Returns (%) #

56.41%

50.36%

NA

NA

NA

NA

55.13%

50.36%

NA

NA

NA

NA

Past performance may or may not be sustained in the future. Data as on of 31st July ,2021 Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 Schemes and Ms. Sneha Joshi 1 Schemes of the Quantum Mutual Fund. # NIFTY 100 ESG TRI.

Quantum Equity Fund of Funds

Mr. Chirag Mehta is the Fund Manager effective from November 01, 2013.

Period

1 year

Scheme Returns (%) Quantum Equity Fund of Funds – Direct Plan (Gr) Quantum Equity Fund of Funds – Regular Plan (Gr)

3 years

Benchmark Scheme Benchmark Returns (%) Returns (%) Returns (%) # #

5 years

Scheme Returns (%)

Benchmark Returns (%) #

50.18%

49.77%

12.76%

13.60%

13.04%

14.66%

49.81%

49.77%

12.52%

13.60%

NA

NA

Past performance may or may not be sustained in the future. Data as on of 31st July ,2021.

Load is not taken into consideration in Scheme Return Calculation. #BSE 200 TRI Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 schemes of the Quantum Mutual Fund.

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Disclaimer

The comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to invest. Investments in Quantum Multi Asset Fund of Funds / 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 Quantum Multi Asset Fund of Funds / mutual funds investment. Investment in Quantum Multi Asset Fund of Funds as compared to Fixed Deposits 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.

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.

13thAugust 2021 Mutual fund investments are subject to market risks, read all scheme related documents carefully.

Thank You

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