Written by Insights to Quant Small Cap Fund
Have you heard the saying “Multiply Your Income with the Quant Small Cap Fund“? If not, you just need to tap into the scheme to know more about it. This scheme was launched by Quant Mutual Funds on January 7, 2013. The scheme is mainly focused on the emerging companies of the market.
The increasing demand of the customer thrives for innovations. These innovations are stairs for sustainable development. These companies contribute to increasing the country’s economy. Moreover, the investments in the scheme give power to your potential. As a result, it will lead you to stay in the market.
Additionally, the scheme outperformed the benchmark of NIFTY Small Cap 250 TRI. The investment managers of the scheme are Mr. Ankit Pande, Mr. Vasav Sahgal, and Mr. Sanjeev Sharma. They keep records of the investment allocation. In addition, the scheme uses advanced mathematical models.
Moreover, the management team designs strategies using the models. These models analyze the statistics and data related to the market. Moreover, helps you in making decisions for investing. This scheme sticks to financial data instead of human emotions. This scheme makes wise decisions to make money through technical strategies.
Let’s deepen your knowledge about the scheme by focusing on the different aspects of it.
Is Quant Small Cap Fund Reliable?
Here is the overview that will help you in deciding whether to invest in the scheme or not:
High-Returns
The scheme has involvement in the newly entered firms of the market. These firms pay attention to improving their growth and performance. As a result, the improving performance leads the scheme to outperform in the market. Consequently, it benefits you with high earnings.
Long-Growth
The small cap firms take time to flourish in the market. That means it is a long-term procedure. In this way, when the productivity of firms outreach with a slow pace, the scheme goes with an upswing. As a result, it gives you an evergreen growth that will last long in the market.
Diversification
The developing firms are less explored part of the market. The scheme does invest in those firms that are fundamentally developed. Investments in this scheme are beneficial to you with the distinct investing. As a result, it diversifies your portfolio with less explored and growth-oriented investments.
Data-Driven Strategies
The management team of the Quant Small Cap Fund uses mathematical and technical models. These models analyze the market statistics precisely. Based on the precise data and probability. The team by using the models designs data-driven and research-oriented strategies. The data-driven strategies focus on the calculations rather than the human emotional aspects.
Growth Potential
The firms have to face various challenges till they progress in the market. These fluctuations by the time of progression make them potentially strong. As a result, the investments of the scheme have to face the same fluctuations. Consequently, it makes your caliber strong enough to challenge adverse conditions easily.
Investment Methods
The scheme has investment methods such as lump sum and systematic investment plans. Both investment methods are unique in their way. The lump sum is a one-time investing process. It needs a huge amount at once to start. On the other hand, systematic investment plans are based on regular intervals. This method takes a small amount for the investing process.
Let’s expand the scheme by learning its disadvantages in the next section.
What are the Disadvantages of the Quant Small Cap Fund?
On the flip side, it is important to consider the risk factors or disadvantages of the scheme.
Market Fluctuations
The market has to face economic downturns unexpectedly. The firms are dependable on these fluctuations. Ultimately, it affects the productivity of the scheme. This decrement in the scheme progress lowers the value of the returns. As a result, it is reflected in your earnings.
Less Stability
Although, small cap firms provide you with more returns and growth. These firms are less stable than the large and mid cap firms. For instance, in case the business is not going well with time, the scheme has to see downturns. As a result of these downturns, it is shown in your net earnings.
High-Cost
The management team of the Quant Small Cap Fund uses advanced technologies for market research. Moreover, they design data-driven investing strategies based on that research. These operational research and designing strategies have higher expenses. This cost decreases your net earnings.
Liquidity Challenge
The small cap firms have limited liquidity than the large and mid cap firms. Frequent investing and redeeming the investments without affecting the value is challenging. The buying and selling procedure makes the expense ratio higher for the scheme. Moreover, it becomes hard to sell the investments during the inflation period. As a result, it slightly affects your net income.
Less Informative
The firms involved in the scheme are less explored side of the market. Hence, it creates less transparency between you and the investment progress. As a result, it forces you to think about whether the firms are doing well or not. Moreover, it becomes a sensitive point for you to invest further in that particular firm or not.
With the clearance of the scheme description. Let’s explore the suitability of the scheme.
Who Should Invest in the Quant Small Cap Fund?
Now, let’s focus on the eligibility for the scheme that you should know while investing in the scheme.
Seeking for Long-term Growth
The scheme parallelly grows with the growth of the firms. This is a long time procedure. If you seek growth that makes you stay for a long time. Then the scheme is a door to you for achieving that long-term growth.
Seeks for Diversification
The scheme explores the unexplored firms of the market. Additionally, make investments in such firms. If you have an exploring personality and wish to explore the unseen part of the market. Then the scheme works as an opportunity for you to invest in it. In addition, it gives your portfolio with variation of small cap investments.
Experienced Investors
The scheme has unexpected swings along with the market. If you are comfortable with the swings and have proper knowledge about the market traits. Then the scheme is suitable for you.
New Investors
If you are young and new to investing and don’t wish to face enough risks related to the scheme. Then the scheme gives you an option for regular investing that is adjustable. On a similar note, it reduces the market and time risks.
Let’s move to the conclusion that summarizes the discussion of the scheme.
Conclusion
To sum it up, the scheme shows its various features along with its risk factors. Are you still willing to multiply your income and growth potential but afraid of the risks?
Then there is a door to SIP investment that reduces your fear of risks. These are the regular investments. Furthermore, they can be adjustable as well as affordable. It inculcates the habit of savings in you by its regular interval procedure of investing.
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