Allocate 25% to value strategy, says Quantum Mutual Fund

Fund managers at Quantum Mutual Fund believe post the recent rally, the benchmark indices appear expensive. However, in the medium and long term, India’s nominal GDP growth will look better than the western world. This makes it a sought-after destination for yield & growth-seeking long term global investors.

“Investors should look at active funds with portfolio P/E multiples ideally more attractively valued than the benchmark but offering a very similar or higher growth profile,” says Sorbh Gupta, Fund Manager, Quantum Mutual Fund. Gupta believes lower P/E reduces the drawdown risk, but a similar growth outlook indicates the portfolio’s ability to capture the upside sufficiently.

Quantum mutual fund believes from a long-term financial planning perspective, investors should create a diversified equity portfolio through a mix of five to six schemes of varying styles and market capitalizations. Of this, a value fund can be an anchor fund with 20-25% of total exposure layered with funds of different market capitalizations.


With the economic recovery in place, Gupta believes we are in the first meaningful corporate earning upgrade cycle since 2014. Sectors with strong multiplier effects in the economy like real estate and IT are seeing steady recovery.

An uptick in the private CAPEX cycle in the next few quarters, if it happens, will further confirm this trend and will be positive for equities.