The securities quoted are for illustration only and are not recommendatory.
Returns are on a rolling basis and in %. Direct Plan-Growth option. Those depicted over 1-Yr are compounded annualised. Risk ratios are calculated over a 3-year period assuming a risk-free rate of 6% p.a.
Data as of October 08, 2024
(Source: ACE MF, data collated by PersonalFN)
Please note, this table only represents the best-performing funds based solely on past returns and is NOT a recommendation. Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance is not an indicator for future returns. The percentage returns shown are only for indicative purposes.<\/strong><\/p>\n\n\n\n

Quant Mid Cap Fund carries an extraordinary performance track record and has handsomely rewarded its investors. On a rolling return basis, in the last 2-year, 3-year, and 5-year periods the fund has outpaced the benchmark by a remarkable margin of around 5 to 8 percentage points CAGR and the category average by 7-10 percentage points CAGR, thus finding a spot among top quartile performers. Even over the shorter time frame of 1 year, the fund has generated a decent lead over the benchmark, outpacing most of its peers. Its superior performance in recent years has boosted its long-term returns as well. Quant Mid Cap Fund now stands among the category outperformers across time periods and has also outpaced its benchmark by a substantial margin.<\/p>\n\n\n\n

Notably, the volatility recorded by Quant Mid Cap Fund (17.15%, annualised) is higher than the category average as well as the benchmark, whereas its Sharpe Ratio is currently among the best in the Mid Cap Fund category and much ahead of the benchmark. The fund has managed to reward investors optimally for the level of risk taken.<\/p>\n\n\n\n

What is the investment strategy of Quant Mid Cap Fund?<\/strong><\/p>\n\n\n\n

Categorised as a Mid Cap Fund, Quant Mid Cap Fund is mandated to invest a minimum of 65% of its assets in stocks of mid-cap companies, i.e., companies ranking 101st to 250th in terms of market capitalisation. The fund also allocates a substantial portion in stocks of large-cap companies along with some exposure in small-cap stocks. Quant Mid Cap Fund adopts a quantitative approach to select high-growth potential stocks based on the relevant market, industry, sector, and economic parameters. This quantitative approach is based on the fund house’s proprietary VLRT framework, viz. Valuations, Liquidity, Risk, and Timing. Here are the key features of the framework:<\/p>\n\n\n\n

i) Valuation Analytics: Knowing the difference between price and value;<\/p>\n\n\n\n

ii) Liquidity Analytics: Understanding the flow of money across asset classes;<\/p>\n\n\n\n

iii) Risk Appetite Analytics: Perceiving what drives market participants to certain actions and reactions;<\/p>\n\n\n\n

iv) Time: Being aware of the cycles that govern how the other three dimensions interact.<\/p>\n\n\n\n

This framework enables the scheme to understand the various investment trends, thereby allowing it to select high-growth potential stocks. Quant Mid Cap Fund holds many of its stocks with a short-term view, and as a result, it has usually recorded a high turnover of 300-365% in the last two years.<\/p>\n\n\n\n

What is the investment strategy of Quant Mid Cap Fund?<\/em><\/strong><\/p>\n\n\n\n

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Holding in (%) as of September 30, 2024
(Source: ACE MF, data collated by PersonalFN)\u00a0<\/p>\n\n\n\n

Quant Mid Cap Fund is selective in stock picking and holds a compact portfolio of about 20-30 stocks. As of September 30, 2024, the fund held 20 stocks, with the top 10 holdings accounting for a major 68.8% of its assets. Large-cap stocks such as Reliance Industries and ITC currently appear among its top holdings. Among mid-cap stocks, the fund has a higher allocation to Aurobindo Pharma, Steel Authority of India, IRB Infrastructure Developers, Container Corporation of India, and Tata Communications. Unlike many of its peers, Quant Mid Cap Fund does not shy away from holding an exposure of 5% or more in individual mid-cap stocks, and neither does it hesitate from holding unconventional bets. The fund also held some exposure in Derivatives – Futures.<\/p>\n\n\n\n

In the last two years, Quant Mid Cap Fund has benefited immensely from its holdings in Linde India, while It has booked profits in Adani Power, Jio Financial Services, NMDC, Samvardhana Motherson International, Bharat Heavy Electricals, Oil India, Ipca Laboratories, Torrent Power, Sun TV Network, Oracle Financial Services, and Escorts Kubota, among others. The fund has also benefitted from SAIL, Tata Communications, Aurobindo Pharma, Glaxosmithkline Pharma, Llyods Metals & Energy, Tata Power Company, Linde India, and Reliance Industries, among others that have risen significantly since their addition to the fund’s portfolio.<\/p>\n\n\n\n

In terms of sectors, Quant Mid Cap Fund’s portfolio is currently skewed towards the top 4 sectors viz. Transportation, Metals, Pharma, and Consumption that collectively form around 50.4% of its assets. The rest of its portfolio is diversified across a range of sectors such as Petroleum, Telecom, Finance, and Chemicals, among others. The fund’s portfolio is well-diversified across Cyclical, Sensitive, and Defensive sectors.<\/p>\n\n\n\n

Is Quant Mid Cap Fund suitable for my investment goals and risk tolerance?<\/strong><\/p>\n\n\n\n

Quant Mid Cap Fund has registered robust growth since 2020 and now stands among the category toppers across short to longer time frames. Its active investment approach and the ability to timely identify multi-bagger ideas has helped it generate remarkable lead over the benchmark and its prominent peers. The predominant midcap allocation and timely identification of high growth stocks enable it to boost portfolio returns. The fund also holds significant allocation to large-cap stocks that can offer stability and steady growth to the portfolio.<\/p>\n\n\n\n

Although Quant Mid Cap Fund frequently churns its portfolio and carries a higher turnover ratio (currently between 300% to 365%), it has managed to keep the volatility at reasonable levels. Despite following an aggressive investment approach, the fund lays great emphasis on risk management by creating an optimal mix of stocks spread across sectors and by focusing on the valuation, liquidity, and timing of the investment. Accordingly, Quant Mid Cap Fund has fared outstandingly on the risk-adjusted returns. The Sharpe ratio of the fund is currently among the best in the category and way ahead of the benchmark.<\/p>\n\n\n\n

Quant Mid Cap Fund is suitable for aggressive investors looking for an agile Mid Cap Fund with an investment horizon of at least 5-7 years.<\/p>\n\n\n\n

Watch this video to find out the best Mid Cap Funds of 2024:<\/p>\n\n\n\n