Quantum Mutual Fund has introduced the Quantum Flexi Cap Fund, an open ended dynamic equity scheme investing across large, mid and small cap stocks. The scheme document did not carry final NFO dates at the time this article was prepared, so investors should confirm the live subscription window on the AMC’s website before applying.
The fund’s objective is long term capital appreciation, built through a diversified portfolio that can move across market capitalisation as opportunities change. There is no assurance this objective will be met.
Flexi cap funds have drawn strong investor interest recently, leading net equity inflows over the past year as reported by Business Standard. For an investor who wants one scheme that can shift across market caps rather than running separate funds, this category is worth understanding before deciding whether it fits a portfolio.
Quantum Flexi Cap Fund NFO details
Fund name | Quantum Flexi Cap Fund |
Fund type | Open ended dynamic equity scheme |
Category | Flexi Cap Fund |
Nature of scheme | Investing across large cap, mid cap and small cap stocks |
Benchmark | BSE 500 TRI (Tier I) |
Fund managers | Chirag Mehta, CIO Ketan Gujarathi, Associate FM |
NFO opens | Not available |
NFO closes | Not available |
Allotment / Reopening date | Not available |
Minimum investment | Rs 500, in multiples of Re 1 |
Additional investment | Rs 500, in multiples of Re 1 |
SIP amount | From Rs 100 (daily) or Rs 500 (other frequencies) |
NAV during NFO | Rs 10 per unit |
Riskometer | Very high risk |
Stamp duty | 0.005% |
Entry load | Nil |
Exit load | Nil on first 10% redeemed within 180 days; 1% on remaining units within 180 days; nil after |
AMC details
AMC name | Quantum Asset Management Company Private Limited |
Assets under management | Not available |
Website | www.QuantumAMC.com |
CustomerCare@QuantumAMC.com | |
Registered office | 1st Floor, Apeejay House, 3 Dinshaw Vachha Road, Backbay Reclamation, Churchgate, Mumbai 400020 |
Contact number | 1800-209-3863 / 1800-22-3863 (toll free) |
Source: AMFI India: New fund offer.
What has Quantum Mutual Fund launched?
Quantum Mutual Fund has launched an open ended dynamic equity scheme, the Quantum Flexi Cap Fund. Unlike a large or small cap fund, it is not tied to one part of the market, investing 65% to 100% of assets across large, mid and small cap companies based on relative opportunity.
The fund follows an active style, with room, up to 10%, for REITs and InvITs, and up to 35% for debt instruments, mainly for liquidity or a defensive stance in uncertain markets. Company size follows SEBI’s definitions, refreshed periodically by AMFI.
How does the Quantum Flexi Cap Fund strategy work?
The fund follows a Growth at Reasonable Price approach: studying the business, industry and management quality before valuation enters the picture.
Step | What happens? |
1 | Evaluate the business, its environment and management quality |
2 | Check whether financials can support long term goals |
3 | Compare valuation multiples against peers and the stock’s own history |
4 | Buy where price offers reasonable upside to estimated long term value |
5 | Monitor on fundamentals, sector weight and concentration limits |
6 | Sell when price runs ahead of value, risk-reward turns poor, or a better option appears |
7 | Rebalance across large, mid and small cap allocations as opportunities shift |
Let’s understand the Quantum Flexi Cap Fund through an example
Say the manager finds a mid cap company with a strong balance sheet, trading below estimated long term value. The team studies the business and management first, then checks valuation against peers and history.
If it holds up, the stock could enter the mid cap allocation, and later be trimmed if price runs ahead of fair value. This illustrates process only, not a return projection.
Quantum Flexi Cap Fund portfolio allocation
Instrument | Minimum | Maximum |
Equity & equity related instruments | 65% | 100% |
Equity & equity related instruments (other than above), including REITs | 0% | 10% |
Debt & money market instruments | 0% | 35% |
Units of InvITs | 0% | 10% |
As a new scheme, the fund has no actual holdings yet. Allocation will follow this table once live.
Quantum Flexi Cap Fund investment strategy
The fund invests after fundamental analysis, both quantitative and qualitative, favouring growth potential, good management, durable business models, reasonable valuations and sound governance.
Risk is managed through sector diversification and single-stock limits rather than concentrated bets. For liquidity, the scheme can hold cash, treasury bills or short term deposits, and may use derivatives for hedging up to 5% of net assets, not for non-hedging exposure.
Potential benefits of the Quantum Flexi Cap Fund
Potential benefit | Why does it matter? |
Flexibility across market caps | The manager can shift between large, mid and small cap stocks as opportunities change |
Diversification | A single scheme spreads exposure across company sizes and sectors |
Active, research led selection | Stocks are chosen through a defined process rather than passively tracking an index |
Defensive flexibility | Up to 35% may sit in debt when equity valuations look stretched |
Key risks in the Quantum Flexi Cap Fund
Risk | What does it mean? |
Market risk | Equity holdings can fall with broader market moves; capital is not guaranteed |
Liquidity risk | Some holdings may be harder to buy or sell quickly at a fair price |
Concentration risk | Meaningful sector or company exposure could hurt returns if that area underperforms |
Interest rate risk | The debt portion can lose value if interest rates rise |
Who may consider the Quantum Flexi Cap Fund?
Investor type | Why it may fit |
Horizon of 5 years or more | Equity across market caps needs time to work through cycles |
Wants single-scheme diversification | One fund spans large, mid and small cap exposure |
Comfortable with very high risk | The scheme carries a very high riskometer rating |
Building a core equity allocation | Flexi cap funds often serve as a core holding |
Who may not find the Quantum Flexi Cap Fund suitable?
Investor type | Why it may not fit |
Horizon under 3 to 5 years | Less room to ride out equity volatility |
Seeking capital protection | The scheme does not guarantee returns or protect capital |
Uncomfortable with mid and small cap risk | Allocation could shift meaningfully into these segments |
Already holding several flexi cap funds | Adding another may increase overlap, not diversification |
Quantum Flexi Cap Fund vs traditional investment options
Feature | Fixed Deposit | Debt Fund | Hybrid Fund | Equity Fund | Flexi Cap Fund (New) |
Risk | Low | Low-moderate | Moderate | High | Very high |
Return potential | Fixed | Moderate | Moderate | High | High |
Volatility | Minimal | Low-moderate | Moderate | High | High |
Liquidity | Limited | High | High | High | High, post NFO |
Horizon | Short-medium | Short-medium | Medium | Long | Long |
Suits | Capital safety | Conservative investors | Balanced investors | Equity investors | Flexible, diversified equity exposure |
Quantum Flexi Cap Fund Review by Zenith Finserve
The Quantum Flexi Cap Fund can work as a core equity holding for a goal based financial plan still five years or more away, such as a child’s education or a retirement corpus built up gradually. Moving across large, mid and small cap stocks rather than one segment, it may suit investors wanting a single fund for that job.
That flexibility carries a very high risk rating and no guaranteed return, so it does not fit money needed soon, or investors unsettled by NAV swings. As a new scheme, its sector tilts will only show once disclosures begin.
Weigh it against existing mutual fund holdings first, since heavy flexi cap exposure may gain little from another. Reviewing this within broader investment planning helps place the decision in context.
How Zenith Financial Management can help
At Zenith Financial Management, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments. We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Similar NFOs on Zenith Finserve
TRUSTMF Large & Mid Cap Fund NFO: another recent active equity launch investing across large and mid cap stocks, though with a narrower mandate than the Quantum Flexi Cap Fund’s full market cap flexibility.
Axis Nifty50 Equal Weight Index Fund NFO: a passive equity launch from the same period, useful as a contrast to this fund’s active, research led stock selection.
Quantum Flexi Cap Fund NFO: Frequently asked questions
1. What is the Quantum Flexi Cap Fund?
An open ended dynamic equity scheme from Quantum Mutual Fund, investing across large, mid and small cap stocks.
2. When does the NFO open and close?
Not confirmed in the scheme document at the time of writing. Check Quantum Mutual Fund’s website for the live window.
3. What is the minimum investment?
Rs 500, in multiples of Re 1. SIPs start from Rs 100 daily.
4. What is the NAV during the NFO?
Rs 10 per unit.
5. What is the riskometer rating?
Very high risk, for both scheme and benchmark.
6. Who are the fund managers?
Chirag Mehta, Chief Investment Officer, and Ketan Gujarathi, Associate Fund Manager.
7. What is the benchmark?
The BSE 500 TRI.
8. Is the Quantum Flexi Cap Fund NFO good to invest in?
That depends on your goals, horizon and portfolio. This is not investment advice; consult a qualified planner.
9. What is the exit load?
Nil on the first 10% redeemed within 180 days, 1% on the rest within 180 days, nil after.
10. Does it guarantee returns?
No. Returns depend on market performance.
11. Can I start a SIP?
Yes, once ongoing subscriptions begin, from Rs 100 daily or Rs 500 for other frequencies.
12. What is the expense ratio?
Up to 2.10% on the first Rs 500 crore of daily net assets, reducing in slabs thereafter.
