With Over 85% Absolute SIP Returns In 5-Years, This Multi-Asset Allocation Fund Is Good For SIP

Many investors are concerned about current market conditions. They are hesitant to put money into a pure equity fund. Hybrid funds with graded equity exposure can provide a protective investment for such investors. The allocation of stock and debt in a portfolio is determined by the investing objectives. This percentage is skewed due to the non-uniformity of market movement. This particular hybrid fund seeks capital appreciation by investing government securities market, The fund, in the last 5 years offered over 85% returns via SIP. It also outperformed the benchmark.

Quant Multi-Asset Fund - Direct Plan-Growth

This is a 21-year-old Multi-Asset Allocation Mutual Fund scheme launched in February 2001. It is an open-ended hybrid medium-sized fund of its category from the house of Quant Mutual Fund.

The fund's Direct Plan-Growth has Rs 295.85 Crores worth of assets under management (AUM). Whereas, its latest declared Net Asset Value (NAV) as of 26th May 2022 is Rs 78.5014. It has an expense ratio of 0.5%, which is higher than its category average expense ratio of 0.8%. 

It is rated a highly risky fund for investments. S&P BSE 200 TRI (65), MCX I-COMDEX Composite Index (20), and CRISIL Short-Term Bond Index (15) are this fund's benchmarks.

To start investment in this fund, the minimum investment amount required is Rs 5,000, whereas, to start SIP, the minimum required amount is Rs 1,000. For additional investment, it is Rs 1,000 as well. There is no lock-in period in this fund. There is also Rs 0 charges for exit or redemption. 

The fund's primary goal is to generate income and capital appreciation by investing in the Government securities market. By investing in securities established and issued by the Central Government and/or a State Government, as well as repos/reverse repos in such government securities as may be approved by RBI, the goal is to earn returns commensurate with little credit risk.

Absolute & Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 13.24% average annual returns.

Tenure	Absolute Returns	Annualised Returns
1 Year	15.81%	15.81%
2 Year	129.43%	51.47%
3 Year	112.86%	28.55%
5 Year	129.42%	18.06%
Since Inception	221.29%	13.24%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	3.24%	6.08%
2 Year	36.78%	33.44%
3 Year	60.84%	33.46%
5 Year	85.99%	25.10%

Portfolio

The fund is invested in Indian stocks to the tune of 73.02 per cent, with 27.09 per cent in large-cap stocks, 5.53 per cent in mid-cap stocks, and 30 per cent in small-cap equities. Debt makes up 8.6% of the fund's investment, with 8.6% of it in government securities. 

The financial, services, construction, consumer staples, and communication sectors make up the majority of the fund's equity holdings. In comparison to other funds in the category, it has less exposure to the Financial and Services industries. The fund's debt portion has a very low credit rating, meaning that the borrowers to whom it has lent money are of poor quality. 

Nippon India ETF Gold BeES, GOI, Ruchi Soya Ind. Ltd., Just Dial Ltd., and IRB Infrastructure Developers Ltd. are the fund's top five holdings.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.