A unique confluence of factors has put the spotlight back on mutual fund investing in India. With the emergence of a new generation of equity investors, aided by tech-driven innovations in financial services, equity mutual funds witnessed inflows of Rs. 71, 593 crores. The rising tide of investor interest has been met by burgeoning choices, reflected in the launch of 140 new funds in 2021.
Navigating through this crowded market, and defining the principles to guide one’s investments could be a challenge, without the expert advice of an industry veteran. Fortunately, viewers got all that and more, on a live webinar, ‘A Masterclass for The Thoughtful Investor’, presented by Moneycontrol and Quantum Mutual Fund, where Kayezad Adajania, Editor, Personal Finance, Moneycontrol, sat down with Ajit Dayal, Founder, Quantum Mutual Fund, who brought with him a world of experience and insights on how mutual funds can best serve the interests of investors.
A Solid Foundation
Many of Ajit Dayal’s essential investment principles are rooted in his role as an international fund manager, leading up to the launch of Quantum Mutual Fund in 2006. It’s an ode to his foresight that some of those principles have now become regulatory mandates, most noticeably Quantum Mutual Fund’s practice of benchmarking their performances against the Total Return Index.
Another enduring initiative for transparency is Quantum’s treatment of distributors. “We said we’re happy to work with distributors, as long as they disclose the commission they have earned”, said Ajit Dayal, drawing a contrast in how his company took a firm stance against the opaque system, compared to the rest.
A Clear View
Such operational details, according to Ajit Dayal, are the guardrails that allow investors to pick the right funds. “As an investor you have to be aware of how your money is deployed”, he cautioned all would-be thoughtful investors. “To become thoughtful investors, it takes time. You make a mistake and learn”.
Although, Ajit Dayal and Quantum Mutual Fund do have a readymade solution for new investors to invest securely and diversify effectively. They extol the value of their ’12-20-80’ investment formula, which apportions a retail investor’s corpus along an investment pyramid of increasing risk. “12-20-80 is like the model used by pension funds. They have a responsibility to their pensioners, you have a responsibility to your family”, said Ajit Dayal, when pitching this innovative investment protocol.
Steps To Sustainability
Quantum Mutual Fund stayed true to their pioneering spirit, with the launch of an ESG fund in 2019 – Quantum India ESG Equity Fund. It follows a tradition of socially responsible investments, which Quantum Advisors first introduced in 1996, with the launch of an ‘Integrity filter’. That early initiative has now evolved into a sophisticated ESG index, developed by Quantum Mutual Fund independently, which makes their ESG fund unique in the market, as Ajit Dayal noted.
For the first time investor, the discussion packed in a laundry list of ideas and insights that didn’t just lay out the basic rules to investing in mutual funds, but also elaborated on how thoughtful investing is the first step to better investment management. All it needs is to be put into practice diligently.
Watch the full discussion here:
For more information on how you can make your investment journey a success, visit Quantum Mutual Fund Website
