QASL

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10 Charts, 1 Growth Story India
Speakers Mr. Sorbh Gupta Fund Manager,
Equity Mr. Arvind Chari CIO, Quantum
Advisors April 23, 2021
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What Drives Growth?
30
GDP(nominal)
GDP(real)
20 10 0 -10 -20 -30
Dec-99 Oct-00 Aug-01 Jun-02 Apr-03 Feb-04
Dec-04 Oct-05 Aug-06 Jun-07 Apr-08 Feb-09
Dec-09 Oct-10 Aug-11 Jun-12 Apr-13 Feb-14
Dec-14 Oct-15 Aug-16 Jun-17 Apr-18 Feb-19
Dec-19 Oct-20
Source CMIE, Quantum Research, Quarterly Data
till December 2020
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Investments drive Growth
16.0
14.0
China GDP
China Capital
India GDP
India Capital
14.0
12.0
12.0
10.0
10.0
8.0
8.0
6.0
6.0
4.0
4.0
2.0
2.0
growth
growth
0.0
0.0
Source TED Database, As on July 2020.
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Rising savings and investment sustains Growth
5
India will be a Large Part of The Global Economy
You Cannot Ignore It
Source Quantum, Angus Maddison, University of
Groningen
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Indias Continued Reforms will Make India the
Next China
World India China India average 6.1 China
average 9.2
14.0
12.3
11.6
12.0
9.9
9.6
9.5
10.0
8.8
8.7
8.5


7.8


8.0
7.1
7.1
6.7
6.5
6.1

5.9
5.8
6.0
5.4
5.3
5.2


4.9




4.0
3.9

3.7
3.5
4.0
3.4
3.3
3.2
2.9
2.3
2.2
2.0
0.0
Jan 80 - Oct Nov 84 - Dec Jan 90 - Jun 91 July 91
- May 84 Congress 89 Congress Janata Dal 96
Congress
Jun 96 - Mar 98 DF
Apr 98 - Apr 99 BJP
Jun 99 - May Jun 04 - May Jun 09 - May 04
NDA 09 UPA 14 UPA
Jun 14 - Dec 20 NDA
Real GDP Growth Source Worldbank, RBI and
www.parliamentofindia.nic.in as of December 2020.
Please note that data used for World GDP for 2020
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 September.
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India Demographics will Boost Savings
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India Demographics will Boost Income
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Growing Incomes Create Opportunities
Source Morgan Stanley research
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These Opportunities Draw Investors Investments
Cumulative Foreign Direct Investments (FDI) USD
Billion
Cumulative Foreign Portfolio Inflows (FPI) into
Equity and Debt, USD Billion
3,500.0
1,000.0
China
India
China
India
3,000.0
800.0
2,500.0
600.0
2,000.0
1,500.0
400.0
1,000.0
200.0
500.0
0.0
0.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
2019
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
2019
Source World Bank
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Indias Economic Growth Reflected in Corporate
Earnings
Source change in INR, CLSA and Bloomberg
Finance L.P., as of January 31, 2021. CY 21 and
CY 22 are estimate numbers.
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Indias Economic Growth Reflected in Stock Market
Returns
GDP(nominal)
Sensex EPS
SENSEX Index
1500 1300 1100 900 700 500 300 100
Mar-03 Nov-03 Jul-04 Mar-05 Nov-05 Jul-06
Mar-07 Nov-07 Jul-08 Mar-09 Nov-09 Jul-10
Mar-11 Nov-11 Jul-12 Mar-13 Nov-13 Jul-14
Mar-15 Nov-15 Jul-16 Mar-17 Nov-17 Jul-18
Mar-19 Nov-19
Source change in INR, CLSA and Bloomberg
Finance L.P., as of January 31, 2021. CY 21 and
CY 22 are estimate numbers Past performance may
or may not sustained in future
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Based on Historical Data A simple Equity Market
Return Assumption
Indian Equity Market Return Assumptions Expectations Indian Equity Market Return Assumptions Expectations
GDP Growth, real 6.5
Inflation 5.0
GDP Growth, nominal 11.5
If GDP Growth Revenue Growth (Revenues of Typical Companies) 11.5
Profit Growth of Typical Companies 11.5
Companies, listed and in an Index gt Typical Company 13.5
In Long-term Equity Return should Reflect Corporate Earnings In Long-term Equity Return should Reflect Corporate Earnings
Source RBI, CMIE, Quantum Estimates
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Equities Questions in Investors Mind
What will be the impact of Resurgence of Covid-19
on Equities ? Large Caps or Mid/Small Caps, where
to invest? Will Value Style Perform ? Why is
diversification Important?
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Covid-19 Second Wave or Tsunami
April 30 2020 June 30 2020 Sep 30 2020 Dec 31 2020 Feb 28 2021 April 22 2021
Daily new infections 1,901 18,522 80,472 21,822 16,752 314835
Deaths- Cumulative 1,075 16,893 97,497 148,738 157,051 184,687
Vaccine Shots Cumulative 14,301,497 132,015,981
Source John Hopkins University
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Covid-19 Lockdown déjà vu This Time is
Different How is Corporate India Placed ?
The lockdowns are lesser stringent and more
localized this time Corporate Balance-Sheet are
better. The focus has been on debt reduction and
liquidity Last one year has been all about cost
control and business continuity Pvt. Banks
NBFCs have raised capital and are best
capitalized in last 10 years As Global Recovery
is intact, export companies and commodity
producers are comfortably placed
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Lockdowns Need to be Contained Indias Biggest
Risk Jobs Income
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Large Caps or Mid/Small Caps, Where to Invest?
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Corporate India Listed Companies Are Faring
Better
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Smaller Companies are Losing Market Share
Sales Growth
Fixed Assets
30
30
20
20
10
10
0
-10
0
-20
-10
-30
-20
-40
-50
-30
-60
-40
Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13
Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16
Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19
Dec-19 Jun-20 Dec-20
Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13
Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16
Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19
Sep-19 Mar-20 Sep-20
Top 3 Deciles
Bottom 3 Deciles
Top 3 Deciles
Bottom 3 Deciles
CMIE- Economic Outlook, Data as on December 2020
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Business Strength of Larger Companies Reflect in
Equity Returns Over Long Term
Past performance may or may not sustained in
future
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Spiking PER Overstates Valuation Given The June
Quarters Gap Down
Source Bloomberg Finance L.P., as March, 2020
Past Performance may or may not be sustained in
future.
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Will Value Style Perform ?
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Value vs. Growth (2000-2010)
Source Bloomberg. Past Performance may or may
not sustained in future.
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Value vs. Growth (2010-20)
Source Bloomberg. Past Performance may or may
not sustained in future.
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2000-10 vs. 2010-2020 How Different are the
Macro Variables
Last 10 years are characterised by low global
growth, low inflation low interest rates Few
companies which showed growth , were chased by
liquidity making the market polarised
2000-10 2010-20
Average GDP growth Rate (India) YoY 6.32 6.50
Average global GDP growth Rate ( US) YoY 2.23 1.91
Average 10 Year G-Sec Yield ( India) 7.65 7.60
Average 10 Year G-Sec Yield (US) 4.41 2.22
Average Inflation (India) 5.53 7.32
Average Inflation (US ) 2.57 1.72
Source World Bank, Reuters. Past performance may
or may not sustained in future.
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2021 How Things Stack Up For Value Strategy
Broad based economic recovery leading to earning
upgrades. Normal inflation interest rate cycle
will be the key.
Source Bloomberg. Past Performance may or may
not sustained in future.
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Why is Diversification Important?
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Diversification Different Styles Perform In
Different Macro Market Environment
Returns () YTD CY20 CY19 CY18 CY17 CY16
Value Category return 7.95 10.13 -2.31 13.68 22.77 5.59
Large Cap Category return 3.00 14.47 6.12 15.10 16.77 2.43
Midcap Category Return 10.5 24.47 4.93 -10.55 42.51 4.77
Small Cap category return 12.90 27.98 -1.95 -19.03 50.06 6.93
BSE 200 3.84 16.07 8.87 -0.64 32.83 3.97
BSE Sensex -0.10 15.48 14.08 5.90 27.50 2.01
The input data has been sourced from
valueresearch.com for calculating annual returns
(this is data source and not methodology for
calculation of returns) The annual period from
CY16 to CY20 is 31st December ending. The YTD
data is 31st March 2021 ending. Past performance
may or may not be sustained in future.
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Asset Classes Grow Contract in Cycles
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
Sensex 49 Sensex 49 Gold 26 Sensex 83 Gold 23 Gold 32 Sensex 28 Sensex 11 Sensex 32 Bonds 9 Bonds 13 Sensex 30 Gold 8 Gold 16 Gold 28 Sensex 4
Gold 20 Gold 16 Bonds 9 Gold 24 Sensex 19 Bonds 7 Gold 12 Bonds 4 Bonds 14 Sensex -4 Gold 11 Gold 5 Sensex 7 Sensex 14 Bonds 17 Bonds -0.5
Bonds 4 Bonds 7 Sensex -52 Bonds 4 Bonds 5 Sensex -24 Bonds 9 Gold -5 Gold -8 Gold -7 Sensex 3 Bonds 5 Bonds 6 Bonds 11 Sensex 12 Gold -10
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 March 2021 Past performance
may or may not be sustained in future. Based on
SP BSE Sensex Domestic Gold prices and CRISIL
Composite Bond Fund Index Source Bloomberg
Imagine someone holding an all equity portfolio
in 2008, or holding none in the equity rally
that followed?
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Fund Manager Mr. Sorbh Gupta Work experience 15 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 Uses bottom-up stock selection process used to minimize risk. Follows disciplined research and investment process. Low portfolio turnover. Holds cash when stock are overvalued - no derivatives and no hedging. A well-balanced portfolio typically 25 to 40 stocks, across sector.
Useful for Retirement Planning. Childs Education. Childs Marriage. Wealth Creation.
Quantum Long Term Equity Value Fund
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Quantum Long Term Equity Value Fund A 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 Buy after
Conviction, Hold it for long Holds shares or
cash No derivatives, No hedging
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Portfolio Positioning
Winter crop (Rabi) production has been robust
monsoon is expected to be normal. Some of the
portfolio stocks are well positioned to benefit
from strong agri rural economy High quality
stocks available at reasonable valuations were
added to the portfolio in the correction in
February March 2020 Higher weight in NBFC,
Consumer discretionary and IT Portfolio stocks
look comfortable after stress test - have strong
balance-sheet or strong parentage to survive the
downturn Existing cash holding will be used to
add new names in case of correction
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2021 Boom Bust, Evenly Poised

• Boom
• Real economic activity continue to revive
  corporate earning upgrade happen
• Real estate revives stamp duty cut, lower
  interest rates spur real estate demand
• Factories relocate from China to India
• Foreign flows FDI FII driven by higher yields
  and faster growth
• Bust
• Poor Government Policy
• Resurgence in Covid cases, Poor execution of
  Vaccine rollout
• Rising Inflation could dampen Demand Recovery

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Solutions to meet Sustainable Development Goals
SGD-17
SMILE
WHAT IS SMILE?
THE SMILE STORY
OUTCOME SO FAR
SMILE was born out of our desire to support
credible NGOs and create a steady stream of
money flow for them
Since 2018, Quantum MF investors have supported
7 NGOs from diverse sectors via the SMILE
facility
SMILE enables Quantum MF investors to contribute
10 of their investment in eligible schemes to
charities vetted by HelpYourNGO
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SMILE Process Flow
INVEST IN SMILE FACILITY Q Long Term Equity Value
Fund Q Equity Fund of Funds Q Dynamic Bond
Fund Q Multi Asset Fund of Funds Q Gold Savings
Fund Q Liquid Fund
DONATE TO NGOS
DONATION RECEIPTS HelpYourNGO sends donation
receipts and 80G Liaises with NGO
grantees Monitors reviews
Donated to NGOs selected by investors and
vetted by HelpYourNGO
Q Stands for Quantum for scheme names
Investors receive periodic program reports from
HelpYourNGO on the NGOs supported by them
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Product Label
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Product Label
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Product Label
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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
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Readers are advised to seek independent
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modifications and alterations to the performance
and related data from time to time as may be
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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. 23rd April 2021 Mutual fund
investments are subject to market risks, read all
scheme related documents carefully.
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Appendix
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2021- A Simple Asset Allocation Strategy to Deal
with Market Cycles
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Indias Recent Reforms Will Drive Growth

• Financial
• JAM Trinity
• Fin-Tech
• Payments
• New Bank licenses

• Governance
• Bankruptcy Code
• Tax and legislative Reforms
• Land Labor

• India Inc.
• FDI
• Privatization
• PLI
• Tax cuts

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Second Wave is Serious
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Increase JABS to save JOBS

• In this exclusive webinar, Sorbh Arvind will
  answer big questions like
• Has Covid Impacted Indias Long Term Growth
  Potential?
• What Opportunities Does Indias Growth Story
  Create?
• Are Equities The Best Way To Play Indias
  Long-Term
• Growth Story?