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This Multicap Fund Holds Crisil Rank 1; Higher Allocation To Service Sector Scrips: Check Details
Multicap funds as the name suggests provide you with the advantage of investments across market capitalisation so you get exposure to diversified companies of different sizes. Also, to make it true to their label, SEBI lately mandated minimum 25% allocation to each of the market capitalisation i.e. minimum 25% each into small-cap, mid-cap and large-cap.
So, if you wish to take equity exposure and are not very sure of market dynamics, you can probably lap up multicap funds for wholesome diversification and better risk-adjusted returns. Remember but these funds are largely for long term investors who can bear the market related volatility. Not to forget as these funds will surely have 50% allocation to small and mid-cap stocks, there shall still be a higher degree of volatility in such funds.
Likewise, here we will delve on one of the Multicap fund that is accorded CRISIL Rank 1:
Quant Active Fund
This Quant Mutual fund scheme is the only scheme within the category to be rewarded the CRISIL 1 Rank. The scheme has a fund size of Rs. 2329.31 crore i.e. close to 4% of the investment in the category. The expense ratio of the Regular scheme is on the higher side and is higher than the category average at 2.63%. NAV of the fund as on June 29 is Rs. 374.7966.
Risk-o-meter classifies the fund to carry low to moderate risk.
Other important details on the fund
Quant Active Fund has been in existence for over 20 years and its return since launch has been at 18.56%. The fund's performance is benchmarked against Nifty 500 Multicap 50:25:25 TRI. For SIP in the fund, you can kick-start your investment with a minimum sum of Rs. 1000.
Returns from the fund
As return is the prime objective behind any investment and SIP investing makes more sense, here we have put forth the SIP returns from the fund.
| Fund | 1-year SIP return | 3-year return | 5-year return |
|---|---|---|---|
| Quant Active Fund-G Regular Plan | -11.50% | 29.97% | 23.32% |
So, as is clear as the current correction has led the headline indices to drop around 9-10% so far this year, there is seen negative returns from the fund too in the last 1-year. Also, not to forget, the fund has the highest 3 and 5-year return within the category.
Sector and scrip allocation
Going by the Value Research analysis of the fund, the fund is heavily concentrated towards service sector scrips. This said it is way higher than what the category on an average holds. Following, services, the fund's top sectoral bets include consumer staples, healthcare, financials, metals and mining and materials.
Further, of the 59 stocks held in the fund's portfolio, top 10 stocks account for over 43% of the fund's holdings.
Coming to its top stock holdings, ITC, Vedanta, SBI, Patanjali Foods, L&T, Adani Ports, Adani Enterprises, Linde India, Fortis Healthcare and IRB Infra are the top 10 holdings of the fund.
Scrips included in the fund from the services space includes Adani Ports, Adani Enterprises, CRISIL, Easy Trip Planners, Zee Entertainment and Aegis Logistics.
Disclaimer
Investing in equities/mutual funds/SIPs/debts poses a risk of financial loss. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions taken based on the article.
