Quantum Long Term Equity Value Fund - QLTEVF (1) - PowerPoint PPT Presentation

Title: Quantum Long Term Equity Value Fund - QLTEVF (1)


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Quantum Long Term Equity Value Fund
July 2021 Private Confidential
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TABLE OF CONTENTS
About Us About Quantum Mutual Fund Our Research
and Investment Process Overview - Indian
Economy QLTEVF Fund Performance Risk, Summary
and Conclusion
3
ABOUT US
4
Group Update The Past 25 Years
4

• Set the foundation for building an India-focused
  investment management institution across the 4
  major asset classes equity, fixed income, real
  estate, infrastructure Steady growth in assets,
  disciplined approach attracting clients
• Need for multiple asset classes to reduce the
  business risk of being dependent on any ONE
• product
• India is not mainstream - huge volatility in
  valuations and client interest
• 1990 to 2004 investment processes refined by
  affiliation with international groups
• 2004 to 2008 invested in people
• 2004 to 2008 incubated teams to diversify
  business risk
• 2008 to 2009 invested in world-class systems
• 2010 onwards maintaining our focus and
  discipline succession planning

5
Our Journey so Far

• Quantum Gold Savings Fund
• Indias first fully paperless Online Investing
  Platform

• Quantum Dynamic Bond Fund
• Transactions through Email, WhatsApp Fax

• Quantum Gold Fund
• Quantum Nifty ETF
• Quantum Tax Saving Fund

• Set up Quantum AMC

• Launch of Regular Plans

2005
2006
2008
2009
2011
2012
2015
2016
2017
2019

• Quantum Long Term Equity Value Fund completes
  10-year track record

• Quantum Long Term Equity Value Fund
• Quantum Liquid Fund

• Quantum Equity
• Fund of Funds
• Path to Profit Launched

• Quantum Multi Asset Fund of Funds

• Quantum India
• ESG Equity Fund

6
About our Sponsor Quantum Advisors Pvt. Ltd.
6

• Currently managing an AUM of USD 2.95 Billion
  (INR 21,960 crore) as July 31, 2021
• Manages Indian equity investments for some of the
  largest institutions in the world, including
  Sovereign Wealth Funds, pension funds,
  endowments, and foundations
• Currently registered as a Portfolio Manager with
  SEBI and other international regulators
• Quantum Advisors is 50.8 owned by Mr. Dayal and
  the Management Team and 49.2 owned by HWIC
  Asia. HWIC Asia is ultimately promoted and wholly
  owned by Fairfax Financial Holdings Limited
  (FFHL). FFHL is listed on the Toronto Stock
  Exchange and is led by Mr. Prem Watsa, known as
  the Warren Buffet of Canada

7
ABOUT QUANTUM MUTUAL FUND
8
About Quantum Mutual Fund
8

• Quantum Mutual fund was established in 2006 with
  the launch of the Quantum Long Term
• Equity Value Fund
• Quantum Mutual Fund was the 29th, but Indias 1st
  Fund house that started with a focus on a Low
  Cost Approach for investors
• Simple range of funds No confusion for investors
• Disciplined Research and Investment Process
  Team-driven, no star fund managers
• Staying the course, no short cuts Asset
  Managers, not Asset Gatherers
• Quantum MF AUM Rs.2,011.83 Cr. as on 31st July
  2021
• Number of Folios 72,854 as on 31st July 2021

9
Company Structure

• Quantum Advisors, India (QAS), provides
  investment advisory services and manages
  portfolios of FIIs and Indian clients. Registered
  as Portfolio Manager with SEBI since 1997. It is
  led by Mr. I. V. Subramaniam (Subbu), who is the
  MD Group Head (Equities) of the company.
• Subbu joined Quantum in 1996 and has over 25
  years of experience in the investment management
  and financial services industry. Since June 2000,
  Subbu has managed India-dedicated portfolios for
  Indian clients and since 2005, he has managed
  India-dedicated portfolios for international
  clients. Subbu received his Bachelors degree in
  commerce from Osmania University in 1983 and his
  Law degree from Osmania University in 1986. He
  is a CFA Charter holder. Subbu was born in 1962.
• 100 subsidiary of QAS
• Quantum Asset Management, India (QAMC) SEBI
  Registered Asset Management Company and
  Investment manager for Quantum Mutual Fund. It is
  led by Mr. Jimmy Patel, who is the MD CEO of
  the company.
• Jimmy Patel joined Quantum in 2010 and has over 3
  decades of experience in the financial services
  sector, and has held various key management
  roles. Along with holding a Chartered
  Accountants degree, Mr. Patel has also completed
  his
• L.L.B. from the University of Mumbai. Mr. Patel
  is a Fellow of the Chevening
• Standard Chartered Financial Services Leadership
  Programme at Kings College, London. He has been
  a Director on Association of Mutual Funds In
  India (AMFI) Board and also has been a member of
  various AMFI and SEBI Committees.
• Jimmy was born in 1967.

10
Always Putting Investors First, Even Above our
Growth in AUM
10
Quantum Mutual Fund SEBI Imposes Rule on MF Industry
Refused to follow the opaque Entry Load Model Mar 2006 Jun 2009
Pioneered Direct to Investor, despite Slow Internet Speed and No Smart Phones Mar 2006 Jan 2013
One Scheme / product per asset class Mar 2006 Oct 2017
Exit Load swept into funds for the benefit of Unit Holders Mar 2006 Nov 2012
No Discrimination against Retail Investors Mar 2006 Sep 2012
Introduced the practice of following Total Return Index (TRI) as benchmark for Equity Fund Mar 2006 Jan 2018
Majority of Independent Directors on AMC Board Mar 2006 ?
Path to Profit (Investor Education Awareness Program) Aug 2009 Sep 2012
100 Independent Board of Trustees Oct 2010 ?
Mark to Market valuation in Liquid Fund, irrespective of the maturity Jul 2012 April 2020
ZERO Upfront Distributor Commission and uniform trail commission across all partners on Regular Plan Apr 2017 Sep 2018
TER based on AUM Slabs Feb 2017 April 2019
11
Profile of Management Team - QAMC
Jimmy Patel MD CEO (2010) Jimmy Patel has over
3 decades of experience in the financial services
sector, and has held various key management
roles. Along with holding a Chartered
Accountants degree, Mr. Patel has also completed
his L.L.B. from the University of Mumbai. Mr.
Patel is a Fellow of the Chevening Standard
Chartered Financial Services Leadership Programme
at Kings College, London. He has been a Director
on Association of Mutual Funds In India (AMFI)
Board and also has been a member of various AMFI
and SEBI Committees. Jimmy was born in
1962. Rina Nathani Chief Business Officer
(2020) Rina has over 20 years of experience in
building businesses, advising companies and
leading teams to successful outcomes. Prior to
joining Quantum AMC, Rina was a Director in
KPMGs Advisory Practice in the US and Head
Retail Businesses at Suminter India Organics,
India. She has done Masters in Management
Studies from Jamnalal Bajaj institute of
Management Studies (JBIMS). Rina was born in
1974. Malay Vora Head Legal Compliance
(2008) Malay Vora has more than 15 years of
experience in Legal, Compliance and Corporate
Secretarial matters in the financial service
industry. He is a Commerce and Law Graduate and
an Associate Member of Institute of Company
Secretaries in India. Malay is the Head of Legal
Compliance and the Compliance Officer for
Quantum AMC. He has been associated with Quantum
since 2008. He is a SEBI Committee member and
has represented Quantum at an AMFI committee in
the past. Malay was born in 1977.
12
Sandeep Bhosle AVP Investor Interaction
(2011) Sandeep Bhosle has more than 18 years of
experience in Financial Services and Market
Research. He a Post Graduate in Marketing
Management. He has Completed Medium and Small
Scale Industries Management Development Program
from NMIMS. Prior to Quantum AMC, he has been
with ICICI Prudential and Birla Sunlife
Insurance and has been instrumental in developing
Rural Markets and New Initiatives, Process
Quality, Loyalty Programs, RR Initiatives. Raje
ndra Gadiyar Head Operations (2011) Rajendra
brings with him more than 2 decades of experience
in Operations and Fund Accounting in Mutual
Funds and Insurance. Prior to joining Quantum, he
was associated with various companies across
Insurance, Asset Management and Investment
Management sectors. Rajendra was born in 1968.
Meera Shetty Head Investor Services (2006) Meera
Shetty has almost two decades of experience in
Investor Servicing. Before joining Quantum, she
was associated with Edelweiss AMC, Principal AMC
and UTI-TSL. She holds a degree in Commerce and
is an MBA with dual specialization in Finance
and Marketing. Meera was born in 1969.
13
Portfolio Team Equity
Nilesh Shetty (2009) Nilesh has more than 17
years of experience in research. He has been a
part of Quantum Asset Management Company since
2009, and at present is the Fund Manager for
Quantum Long Term Equity Value Fund and Quantum
Multi Asset Fund of Funds. Nilesh is a
qualified CFA (Chartered Financial Analyst),
ACMA (CIMA, UK) and has completed his Masters
in Management Studies (Finance) from the Mumbai
University. Nilesh was born in 1980
Sorbh Gupta (2011) Sorbh has more than 16 years
of experience in equity research as well as
managing funds. At present hes the Fund Manager
for Quantum Long Term Equity Value Fund
Quantum Tax Saving Fund. Hes Qualified as a
Chartered Accountant and has completed all the 3
levels of CFA. Sorbh brings with him a wealth
of experience of having tracked varied sectors
in his previous work assignments. Prior to
joining Quantum, he was associated with
Siddhesh Capital Private Ltd. Sorbh was born in
1980
Sneha Joshi (2015) Sneha has over 8 years of
experience in economic, credit and quantitative
research. She holds a Ph.D. in Economics and has
earned an M.A. in Economics from Gokhale
Institute of Politics and Economics. She joined
Quantum AMC in August, 2015. Prior to joining
Quantum, she was associated with Credit Capital
Research as a fixed income research analyst.
Sneha was born in 1988
Hitendra Parekh (2004) Hitendra has close to 3
decades of experience in financial services
industry. Prior to working with Quantum, he has
been with the Unit Trust of India for 4 years
and UTI Securities Ltd for 9 years. He has
completed his B.Com Masters in Financial
Management from Mumbai University. Hitendra was
born in 1968
14
Portfolio Team Non Equity
Ghazal Jain (2020) Gold/Commodities Ghazal has
over 4 years of experience in the field of
finance and alternative investments including
of Gold, Asset Allocation and Personal Finance
investment allocation. She has been with
Quantum Asset Management Company since January,
2019. Prior to joining Quantum, she was
associated with Fox Education LLP and Bahubali
Electronics Private Limited
Pankaj Pathak (2013) Fixed Income Pankaj has
over 11 years of experience in Fixed income
investments and research. He joined Quantum
Asset Management Company in August, 2013 and at
present, is Fund Manager for Quantum Dynamic
Bond Fund and Quantum Liquid Fund. Prior to
joining Quantum, he was associated with Bank of
Maharashtra. Pankaj holds a Post Graduate
Diploma in Banking Finance from National
Institute of Bank Management, Pune and is
qualified CFA (Chartered Financial Analyst).
Chirag Mehta (2006) Gold/Commodities Chirag
has 19 years of experience in the Indian
commodities markets. He also specializes in the
field of alternative investment strategies. He
is a qualified CAIA (Chartered Alternative
Investment Analyst), and has also completed his
Masters in Management Studies in Finance. He
currently manages funds largely in the field of
alternative investments that includes Gold Fund,
a Multi Asset Fund of Funds and an Equity fund
of funds and is also a Fund Manager of Quantum
India ESG Equity Fund. He joined the Quantum
after gaining hands on experience in the
physical commodities market during internship
with Kotak Co. Ltd and working on projects for
the Federation of Indian Commodities Exchanges.
Chirag was born in 1981
15
Criteria to Select a Good Fund House

• What is the background?
• What is the experience?

PEOPLE

• Is there a clearly defined investment philosophy
  across all market situations or is this a
  ride-the-wave, bull-market manager?

PHILOSOPHY

• What is the research and investment process and
  how reliable is it?

PROCESS

• Given the process, is the performance as
• predictable as it should be?

PERFORMANCE
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OUR RESEARCH INVESTMENT PROCESS
17
Stock Markets Offer Real Opportunities

• Market cap USD 3,049.49 bn
• 4,000 listed companies
• 314 companies market cap gt USD 1 bn
• 886 companies market cap gt USD 100 mn
• Daily trading volume USD 9.64 billion/day for the
  period Aug 2020 July 2021
• 651 companies with daily avg traded gt USD 1 mn
• 475 companies with daily avg traded gt USD 2 mn
• Represents many real industries not only
  financial services and property stocks
• Equity culture Bombay Stock Exchange over 130
  years oldest in Asia
• Newer electronic NSE is the 3rd largest stock
  exchange in the world by volume

18
Our Macro Assumptions
The 4 inputs to our bottom-up stock selection
process
Our estimate Current readings Comments
GDP, long-term 6.2 0.4 (Oct 20-December 20) Fiscal response may improve growth outlook. Growth may trend above our estimate if implementation picks up
Inflation 5.0 to 5.5 5.5 We expect inflation to be near 5 in FY 2022 as high import duties increase domestic cost of goods
10-year bond Long term(10yr) 6.50-6.75 Short term (5yr) 6.00-6.25 6.2 High fiscal and high inflation will get bond yields up over the next year. RBI managing bond yield curve with Operation Twist and LTRO
FX rates /-2 (INR /USD in a 73-78 band) INR/USD74.5 RBI dollar buying at record pace to arrest INR appreciation. RBI has enough FX reserves to buffer any sharp depreciation
Source Quantum AMC estimates, as of March 2021
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Value Investing Quantum Mutual Fund

• We follow the Value investing strategy that
  involves buying companies at discounts to their
  long-term intrinsic value
• We focus on the long term potential of the
  business
• We normalize our assumptions - we do not value
  the companies on the basis of peak or trough
  margins
• While valuing the company, we would generally
  give a 40 discount to its intrinsic value to set
• our buy limits
• Typical characteristics of the portfolio
  following Value Investing strategy
• Low price to earnings ratio
• Low price to book ratio
• Low price to sales multiple
• Low price to cash flow
• High dividend yield

20
Our Investment Criteria - Value

• 01 Evaluate
• The business of the company
• The environment in which it operates
• The management, and their long-term goals
• Can the financials support the long- term goals?

• 02 Analyze
• The stock price of the company based on
  fundamentals relative to its peer group, its
  history, and the market

• 03 Buy
• Current price is generally 40 lower than our
  estimate of long- term value (in case of first
  time buy)

• 04 Sell
• Current price is gt our estimate of long- term
  value
• Better Investment
• Alternatives
• Changed view of management, Changed view of
  business

• PER, PCF, P/BV, Div Yld, EV/EBITDA

21
Quantums Bottom-Up Stock Selection Process
Clients get best of bottom-up ideas with a risk
control measurement for each sector Generally, lt
20 of the stocks we cover meet our Buy criteria
25 to 40 stocks
PORTFOLIO
Portfolio of stocks with broad exposure to
various sectors. Approved by the portfolio
team Reflects three broad themes domestic
consumption, exports and infrastructure
201 stocks
VALUE AND INTEGRITY SCREENING
Analysts study stocks in their sector (India)
with global comparison, travel worldwide, prepare
detailed projections. Regular research meetings
to review ideas and approve stocks for the
database. Consensus required. All stocks are
reviewed time to time generally within 180
days. We must trust the managements/founders
327 stocks
ADDRESSABLE UNIVERSE
Number of companies trading over US 1 million/day
Number of stocks mentioned are as per current
average trading volume value criteria. The number
of Stock in trading volume criteria, and in
portfolio will be changed from time to time
based on Investment Strategy of the scheme.
22
Portfolio Construction
Stock under active coverage? Volume INR 6.98 Crs
per day YES
No
To research team
Part of SP BSE-30 Index? No effect on decision
No
Below Buy limit?
Wait
YES What sector?
Indifferent guided by Research Portfolio of
25-40 stocks Investment Rules Minimum wt 2 at
cost Maximum wt 6 at cost Maximum wt 10 at
market value
Weights assigned to a stock are a function of
1) 2) 3) 4) 5)
Reliability of management Quality of earnings
Stability of earnings Upside Potential
Alternatives/Cash
Our portfolio turnover is typically 20,
suggesting a 5 year holding period. Please refer
Scheme Information Document of the Scheme for
complete Investment Strategy
23
A Tale Of Two Stocks Since 1991
(1) We buy liquid shares of good businesses
(2) Illiquid stocks give managers the fees
investors get nothing
Source Bloomberg Finance L.P., As of July 31,
2021 Disclaimer The stocks discussed herein
are for information purpose only. This is not a
recommendation to buy or sell any security.
24
OVERVIEW- INDIAN ECONOMY
25
Myth 1- India will grow 8 P.A
If the world slips sideways, India will grow...as
it has over the past 39 year We believe 6.5 Real
GDP growth is a realistic long term assumption
Source RBI and www.parliamentofindia.nic.in as
of June 2019. Note The number in red rectangle
is from a changed data series starting Jan 2015.
While a superior series, there is no
comparable number to equate the New with the
Old. Most economists deduct 0 to 1.5 from the
New to equate to the Old therefore under
Modi, the GDP has been at 5.9 at best matching
the 5.6 under the BJP-led coalition government
of Vajpayee that resulted in a rout for the BJP
at the time of the next election in 2004! Please
note that data used for World GDP for 2017 is a
median Estimate since World Bank data is not yet
available and India GDP data is governments
second advance estimate released at the end of
May.
26
Myth 2 Make in India will Boost Exports
Sector Contribution To GDP
100
29
41
80
53
15
60
25
Services
40
30
Industry
56
Agriculture
20
34
18 18
Exports
8
0
6
1951
1991
2015
Source Quantum AMC, Google Images, Bloomberg
Finance L.P.
27
Indians Still Consuming The Hungry Consumers!
Year (March end) 2-wheelers (Domestic sales Mn units) Passenger Vehicles (Domestic sales Mn units) Refrigerators (Production Mn units) Cement (mn tn) Home loans outstanding (Rs. bn)
2008 8,064,903 1.6 6.1 174 2,603
2009 8,439,786 1.6 6.7 187 2,794
2010 10,511,009 2.0 8.0 207 3,009
2011 13,302,335 2.5 8.7 216 3,499
2012 15,384,261 2.6 9.9 230 3,971
2013 15,753,563 2.7 11.1 248 4,567
2014 16,890,778 2.5 10.7 256 5,386
2015 18,433,027 2.6 12.0 270 6,285
2016 18,938,727 2.8 11.9 283 7,468
2017 19,928,958 3.1 13.1 280 8,601
2018 23,007,691 3.3 13.5 298 9,746
2019 24,460,688 3.4 15.6 337 11,601
2020 20,936,201 2.7 15.0 334 13,498
2021 18,397,111 2.5 11.2 294 14,591
2022 YTD 3,540,693 0.6 1.6 80 14,646
CAGR (since 2008 till 2021) 6.5 3.8 4.8 4.1 14.2
2022 YTD data Two-wheeler sales data as on June
'21, Passenger Vehicle sales data as on June 21,
Refrigerator data as on May 21, Cement sales
data as on June' 21, Housing loans data as on
June 2021, Source 2 wheelers, Cement passenger
vehicle CMIE database refrigerator production
data CMIE (IIP) database home loans
outstanding RBI Data on Sectoral deployment of
Bank credit (June 2021). Annualized Returns
28
India Linked to Global Capital Flows, Not GDP
As a of GDP Private Consumption Exports of Goods Services
India 58.8 19.2


China 39.3 19.6 Lower glob al links


Indonesia 57.7 19.1
Thailand 50.7 68.9
Malaysia 54.9 67.7
Brazil 64.0 12.5
Russia 51.5 25.7
GDP https//data.worldbank.org/indicator/NY.GDP.MKTP.CD
Pvt consumption https//data.worldbank.org/indicator/NE.CON.PRVT.CD
Exports (Goods Services) https//data.worldbank.org/indicator/NE.EXP.GNFS.CD
Source World Bank database Updated as of March
31, 2021
29
Fund Manager Mr. Sorbh Gupta Work experience 15.9 years. He has been managing this fund Since December1, 2020. Mr. Nilesh Shetty Work experience 16 years. He has been managing this fund Since March 28, 2011.
Category of Scheme Value Fund
Features QLTEVF uses bottom-up stock selection process used to minimize risk. QLTEVF Follows disciplined research and investment process. QLTEVF has a low portfolio turnover. QLTEVF holds cash when stock are overvalued - no derivatives and no hedging. QLTEVF contains a well-balanced portfolio typically 25 to 40 stocks, across sector.
Useful for Retirement. Childs Education. Childs Marriage. Wealth Creation.
Quantum Long Term Equity Value Fund
30
Quantum Long Term Equity Value Fund Must have
equity diversified fund
Value Oriented Equity Diversified Fund since
March 2006 Well balanced portfolio typically 25
to 40 stocks, across sectors Instrumental for
Long Term Financial Goals like Retirement,
Childs Education, Childs Marriage Wealth
Creation A disciplined research and investment
process Low portfolio turnover Very boring, Buy
after Conviction, Hold it for long Holds shares
or cash No derivatives, No hedging
31
Performance across the market cycles - (Mar 2006
July 2021)
Data as on 31st July 2021. 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 32 Source Bloomberg
32
Performance of Quantum Long Term Equity Value
Fund Direct Plan Growth Option
The Scheme is co-managed by Mr. Sorbh Gupta and
Mr. Nilesh Shetty. Mr. Sorbh Gupta is the Fund
Manager effective from December 1, 2020. Mr.
Nilesh Shetty is the Fund Manager effective from
March 28, 2011.
Period Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period
Period Benchmark Additional Benchmark Benchmark Additional Benchmark
Period Scheme Returns () SP BSE 200 TRI () SP BSE Sensex TRI () Scheme (Rs) SP BSE 200 TRI (Rs) SP BSE Sensex TRI (Rs)
1 year 55.45 49.77 41.55 15,527 14,960 14,141
3 years 11.21 13.60 13.14 13,755 14,661 14,484
5 years 10.94 14.66 14.73 16,814 19,836 19,896
7 years 11.32 13.26 12.05 21,191 23,919 22,180
10 years 12.97 13.32 12.72 33,914 34,969 33,143
Since Inception (13th Mar 2006) 13.88 12.59 12.37 74,000 62,082 60,236
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). with
effect from February 01,2020 benchmark has been
changed from SP Sensex TRI to SP BSE 200 TRI.
As TRI data is not available since inception of
the scheme, benchmark performance is calculated
using composite CAGR SP BSE 200 index PRI Value
from March 13, 2006 to July 31, 2006 and TRI
Value since August 1, 2006 For performance of
other Schemes Managed by Mr. Sorbh Gupta please
see slide number 42 and for performance of other
Schemes Managed by Mr. Nilesh Shetty please see
slide 42
33
SIP Performance - Direct Plan Growth Option
SIP Investments Since Inception SIP 10 year SIP 7 year SIP 5 year SIP 3 year SIP 1 year SIP
Total Amount Invested (Rs.'000) 1,840 1,200 840 600 360 120
Mkt Value (Rs.'000) 5,833.33 2,429.85 1,322.29 856.13 497.28 148.02
Scheme Returns (XIRR) () 13.80 13.55 12.79 14.27 22.36 47.56
SP BSE 200 TRI (XIRR) () 13.37 15.30 15.49 17.61 24.34 41.85
SP BSE Sensex TRI (XIRR) _at_ () 12.76 14.50 14.94 17.13 21.30 32.67
Data as of 31st July 2021 Past performance may or
may not be sustained in the future. Load is not
taken into consideration using applicable NAV on
the SIP day (5th of every month). Return on SIP
and Benchmark are annualized and compounded
investment return for cash flows resulting out of
uniform and regular monthly subscriptions as on
5th day of every month (in case 5th is a
non-Business Day, then the next Business Day)
and have been worked out using the Excel
spreadsheet function known as XIRR. XIRR
calculates the internal rate of return for series
of cash flow. Assuming Rs 10,000 invested every
month on 5th day of every month (in case 5th is a
non-Business Day, then the next Business Day),
the 1 year, 3 years, 5 years, 7 years, 10 years
and since inception returns from SIP are
annualized and compounded investment return
computed on the assumption that SIP installments
were received across the time periods from the
start date of SIP from the end of the relevant
period viz. 1 year, 3 years, 5 years, 7 years, 10
years and since Inception. XIRR - XIRR
calculates the internal rate of return to measure
and compare the profitability of series
of investments. Benchmark Returns. _at_Additional
Benchmark Returns.
34
Performance of Quantum Long Term Equity Value
Fund Regular Plan Growth Option
The Scheme is co-managed by Mr. Sorbh Gupta and
Mr. Nilesh Shetty. Mr. Sorbh Gupta is the Fund
Manager effective from December 1, 2020. Mr.
Nilesh Shetty is the Fund Manager effective from
March 28, 2011.
Period Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period
Period Benchmark Additional Benchmark Benchmark Additional Benchmark
Period Scheme Returns () SP BSE 200 TRI () SP BSE Sensex TRI () Scheme (Rs) SP BSE 200 TRI (Rs) SP BSE Sensex TRI (Rs)
1 year 54.67 49.77 41.55 15,448 14,960 14,141
3 years 10.72 13.60 13.14 13,575 14,661 14,484
Since Inception (01st Apr 2017) 9.86 14.85 15.59 15,034 18,225 18,740
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). with
effect from February 01,2020 benchmark has been
changed from SP Sensex TRI to SP BSE 200 TRI.
As TRI data is not available since inception of
the scheme, benchmark performance is calculated
using composite CAGR SP BSE 200 index PRI Value
from March 13, 2006 to July 31, 2006 and TRI
Value since August 1, 2006. For performance of
other Schemes Managed by Mr. Sorbh Gupta please
see slide number 42 and for performance of other
Schemes Managed by Mr. Nilesh Shetty please see
slide 42
35
QLTEVF Monthly Cash Weight - Move To Cash When
There Is No Value And Wait Patiently
Source Quantum AMC. As of July 31, 2021
36
While Avoiding The Illiquidity Trap Is Critical
To Our Investment Process, We Are Not Shy Of
Owning Small Caps
Market Cap Dec 2016 Dec 2016 Dec 2017 Dec 2017 Dec 2018 Dec 2018 Dec 2019 Dec 2019 Dec 2020 Dec 2020 July 2021 July 2021
Market Cap Number of Stocks Weight Number of Stocks Weight Number of Stocks Weight Number of Stocks Weight Number of Stocks Weight Number of Stocks Weight
gt INR 35,000 Crs 19 75 17 75 19 75 17 69 21 75 23 80
gt INR 5,000 Crs,lt INR 35,000 Crs 4 11 3 9 5 15 8 18 7 17 5 11
gtINR 3,000 Crs,lt INR 5,000 Crs 0 0 1 3 0 0 0 0 0 0 0 0
lt INR 3000 Crs 1 2 0 0 1 2 1 1 1 1 0 0
Total Stocks in portfolio 24 88 21 87 25 92 26 88 29 93 28 92
Data as of 31st July 2021 Source Bloomberg. The
number of stocks in portfolio will be changed
from time to time based on Investment Strategy of
the Scheme.
37
Divergent Portfolio - Not the Index for Sure!
Even though we focus on buying liquid stocks, we
do not necessarily buy Index stocks
SP BSE-200 Index (Weight) Do we own it in the QLTEVF? Change for the month ended July 31, 2021
Reliance Industries Ltd 7.25 N/A 19.49
Infosys Ltd 6.50 8.14 118.81
HDFC Bank Ltd 6.41 5.69 33.79
ICICI Bank Ltd 5.21 3.66 94.25
Housing Development Finance Corp Ltd 4.85 8.02 39.10
Total 30.22 25.51 305.45
Source Quantum Asset Management Company Pvt Ltd
and Asia Index Pvt Ltd As of July 31, 2021 Stocks
referred above are for illustrative purpose only
and not recommendation of Quantum Mutual Fund /
AMC. The Fund may or may not have any present or
future positions in these stocks. The above
information should not be constructed as research
Report or recommendation to buy or sell of any
stocks.
38
Portfolio Top 5 Holdings Different Weights
QLTEVF (Weight) SP BSE-200 TRI (weight)
Infosys Ltd 8.14 6.50
Housing Development Finance Corporation Ltd 8.02 4.85
HDFC Bank Ltd 5.69 6.41
Tata Steel Ltd 5.47 1.23
ACC Ltd 4.08 0.22
Total 31.40 19.21
Source Quantum Asset Management Company Pvt Ltd
and Asia Index Pvt Ltd. As of July 31, 2021
Stocks referred above are for illustrative
purpose only and not recommendation of Quantum
Mutual Fund / AMC. The Fund may or may not have
any present or future positions in these stocks.
The above information should not be constructed
as research Report or recommendation to buy or
sell of any stocks.
39
Sector Exposure of Our Bottom-Up Stock Picking
Process
Sector MSCI AC World November 2019 SP BSE- 30 Index November 2019 QLTEVF December 2016 QLTEVF December 2017 QLTEVF December 2018 QLTEVF December 2019 QLTEVF Dec 2020 QLTEVF July 2021
Communication Services 9 2 2 2 2 0 0 0
Consumer Disc. 11 6 23 24 19 19 17 14
Consumer Staples 8 8 0 0 0 0 0 0
Energy 5 13 9 3 3 2 2 2
Financials 17 47 16 14 25 30 29 29
Healthcare 12 1 3 6 6 5 6 6
Industrials 10 4 3 1 2 0 2 2
Materials 5 3 5 4 7 8 10 13
Real Estate 3 0 0 0 0 0 0 0
Technology 17 14 14 15 17 17 17 16
Utilities 3 2 13 14 12 11 10 10
Cash Equiv. 0 0 12 19 8 8 7 8
Total 100 100 100 100 100 100 100 100
No. of Securities 3,060 31 24 21 25 26 29 28
Note Past Performance may or may not be
sustained in future. Source MSCI, Quantum AMC
As of July 31, 2021 Sectors referred above are
for illustrative purpose only and not
recommendation of Quantum Mutual Fund / AMC. The
Fund may or may not have any present or future
positions in these sectors. The above information
should not be constructed as research Report or
recommendation to buy or sell of any sectors /
stocks.
40
Portfolio Top 10 Holdings
Stocks Weights
Infosys Ltd 8.14
Housing Development Finance Corporation Ltd 8.02
HDFC Bank Ltd 5.69
Tata Steel Ltd 5.47
ACC Ltd 4.08
Shriram Transport Finance Company Ltd 3.95
ICICI Bank Ltd 3.66
Wipro Ltd 3.61
State Bank of India 3.47
Mahindra Mahindra Ltd 3.35
Total 49.44
Source Quantum Asset Management Company Pvt Ltd.
As of July 31, 2021 Stocks referred above are for
illustrative purpose only and not recommendation
of Quantum Mutual Fund / AMC. The Fund may or may
not have any present or future positions in these
stocks. The above information should not be
constructed as research Report or recommendation
to buy or sell of any stocks.
41
Stocks we Own are Liquid
No of trading days to sell positions Dec 2016 Dec 2016 Dec 2017 Dec 2017 Dec 2018 Dec 2018 Dec 2019 Dec 2019 Dec 2020 Dec 2020 July 2021 July 2021
No of trading days to sell positions Number of stocks Weight Number of stocks Weight Number of stocks Weight Number of stocks Weight Number of stocks Weight Number of stocks Weight
Less than 1 day 20 77 17 71 21 78 21 76 26 87 26 87
1 day to 5 days 4 11 2 3 2 8 4 14 3 6 2 5
5 days to 22 days 0 0 2 6 2 7 1 2 0 0 0 0
gt 22 trading days 0 0 0 0 0 0 0 0 0 0 0 0
Total Stocks in portfolio 24 88 21 81 25 93 26 92 29 93 28 92
Source Bloomberg. Data as on 31st July 2021.
Based on average daily volume of portfolio stocks
for the last one year and Quantums trading share
of 33. The number of stocks in portfolio will
be changed from time to time based on Investment
Strategy of the Scheme.
42
Other Schemes managed by Sorbh Gupta and Nilesh
Shetty
Quantum Tax Saving Fund Mr. Sorbh Gupta is the
Fund Manager effective from October 1, 2016.
Period 1 year 1 year 3 years 3 years 5 years 5 years
Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns ()
Quantum Tax Saving Fund- Direct Plan (Gr) 54.83 49.77 11.26 13.60 11.08 14.66
Quantum Tax Saving Fund- Regular Plan (Gr) 54.08 49.77 10.77 13.60 N.A. N.A.
Past performance may or may not be sustained in
the future. Data as of 31st July , 2021 SP BSE
200 TRI. With effect from February 01,2020
benchmark has been changed from SP Sensex TRI to
SP BSE 200 TRI. Returns are net of total
expenses and are calculated on the basis of
Compounded Annualized Growth Rate (CAGR). Mr.
Sorbh Gupta co-manages 2 scheme of the Quantum
Mutual Fund. Quantum Multi Asset Fund of
Funds Mr. Chirag Mehta and Mr. Nilesh Shetty are
Fund Managers effective from July 11, 2012.
Period 1 year 1 year 3 years 3 years 5 years 5 years
Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns ()
Quantum Multi Asset Fund of FundsDirect Plan (Gr) 12.78 15.59 9.61 11.95 8.66 10.80
Quantum Multi Asset Fund of FundsRegular Plan (Gr) 12.38 15.59 9.33 11.95 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 Benchmark has been changed from
Crisil Composite Bond Fund Index (40) SP BSE
SENSEX Total Return Index (40) Domestic price
of gold (20) to CRISIL Composite Bond Fund
Index (20) SP BSE Total Return Index (40)
CRISIL Liquid Index (25) Domestic Price of
Gold (15) with effective from April 01, 2021. It
is a customized index and it is rebalanced daily
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. Mr. Nilesh
Shetty manages 2 schemes of the Quantum Mutual
Fund.
43
RISK, SUMMARY AND CONCLUSION
44
Impact/Risk Analysis on The Portfolio
A Top-down View for Presentation Purposes
44
Dec 2016 Dec 2016 Dec 2017 Dec 2017 Dec 2018 Dec 2018 Dec 2019 Dec 2019 Dec 2020 Dec 2020 July 2021 July 2021
Number of Stocks Weight Number of Stocks Weight Number of Stocks Weight Number of Stocks Weight Number of Stocks Weight Numbe r of Stocks Weight
Local Opportunity 6 25 5 24 10 39 11 41 11 42 11 40
Global opportunity 11 41 11 40 10 39 9 37 12 40 12 40
Regulatory/Tariff 7 22 5 17 5 15 6 14 6 11 5 12
Total Stocks in Portfolio 24 88 21 81 25 93 26 92 29 93 28 92
Source Quantum AMC. Data as on 31st July
2021 Note Companies where bulk of the sales
come from India are classified under Local
Opportunity Companies where 25 or more, sales
come from outside India are classified under
Global Opportunity Companies which have their
pricing determined by government policies are
classified under Regulatory/Tariff The number of
stocks in portfolio will be changed from time to
time based on Investment Strategy of the Scheme.
45
Indian Private /MNC/ Government
Events Dec 2016 Dec 2016 Dec 2017 Dec 2017 Dec 2018 Dec 2018 Dec 2019 Dec 2019 Dec 2020 Dec 2020 July 2021 July 2021
Events Number of Stocks Weight Number of Stocks Weight Number of Stocks Weight Number of Stocks Weight Number of Stocks Weight Number of Stocks Weight
Government 8 26 6 21 7 19 7 19 7 14 6 15
Indian Private 10 41 8 35 12 47 12 45 12 44 12 42
MNC 6 21 7 25 7 27 7 28 10 35 10 35
Total Stocks in Portfolio 24 88 21 81 26 93 26 92 29 93 28 92
Source Quantum AMC. Data as on 31st July 2021.
The number of stocks in portfolio will be changed
from time to time based on Investment Strategy of
the Scheme.
46
The Portfolio Relative To The SP BSE-30 Index
QLTEVF As Of SP BSE-30
QLTEVF SP BSE-30 Index Index
Number of equity stocks 28 30
Median market capitalization (USD mn) 11,693 39.00 30,317
Weighted dividend yield 1.40 132.00 1.10
Weighted PER March 2021E 13.58x 70.00 19.30x
Weighted EPS Growth March 2021E 22.52 98.00 23.00
PEG Ratio (excludes cash) 0.60x 72.00 0.84x

T12M PE 22.40x 36.60x
Weightage of stocks with PER gt 20 72.00 91.00
Weightage of stocks with PER gt 30 46.00 66.00
Source Quantum Asset Management Company Pvt Ltd
As of July 31, 2021 cash weight excluded
SP BSE-30 Index weight is based on free-float.
SP BSE 30 Index column depicts the Fund
fundamentals as a percentage of SP BSE 30 Index
fundamentals. The figures mentioned in WTD PER,
WTD EPS and PEG ratio are calculated on the
basis of Bloomberg consensus estimates for
companies owned by the Fund as well as the
companies in the SP BSE 30 as of the reporting
date i.e. July 31, 2021.
47
Summary A significant allocation to public
equities using a disciplined, long-term,
bottom-up, value-driven research and investment
process for investing in the evolving Indian
stock markets
47

• Overall, economic policy is geared towards growth
• India is a party to global trade and tariff
  agreements
• Political risk exists but effect is more on
  specific sector reforms, rather than overall
  direction
• Indian companies and entrepreneurs have oriented
  themselves to live and thrive in free
  markets world class management
• While the macro-economy looks good, fiscal
  deficits could rekindle inflationary pressures, a
  hardening interest rate environment will put
  growth on a 6 trajectory
• Infrastructure Lot of talk, little action
  inflection point?
• Yes, shake hands but count how many fingers you
  get back!

48
India A Wonderful Long-term Theme, But On A
Bumpy Road Requires

• Our Tried and Tested Research and Investment
  Process
• to give Clients with a Long-term investment
  philosophy a Channel

that aims to outperforms on the Upside
and limits the Downside
49
Product Label
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Product Label
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Product Label
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For additional information, please
contact Sandeep Bhosle AVP- Customer
Interaction Email SandeepB_at_QuantumAMC.com
Mobile 91- 98209-43101 Office
91-22-6144-7804 Fax 91-22-2285-4318 Website
www.QuantumAMC.com Quantum Asset Management
Company Private Limited Hoechst House, 6th
Floor, Nariman Point Mumbai-400021, India
55
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. 17th August 2021 Mutual
fund investments are subject to market risks,
read all scheme related documents carefully.
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