NFO Tracker: Quantum Mutual Fund launches ethical fund

Quantum Mutual Fund has announced the launch of NFO of Quantum Ethical Fund, an open-ended equity fund that invests in companies meeting an ethical set of principles, with the objective of achieving long-term capital appreciation.

The new fund offer or NFO of the scheme will open for subscription on December 2 and will close on December 16.

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The scheme will be benchmarked against NIFTY 500 Shariah Total Return Index (TRI). The scheme will be managed by Chirag Mehta.

The investment objective of the fund is to achieve long-term capital appreciation by investing in equity and equity related instruments of companies following an ethical set of principles.

“The Quantum Ethical Fund will enable investors to align their investments to their beliefs, values and ideologies. While encouraging ethical business practices, the robust integrity and financial checks will ensure investments reflect less risk and high quality which would drive long term performance. ‘Responsibility and profitability are complementary traits’ and thereby ‘good ethics is good business’, The Quantum Ethical Fund will allow investors to generate wealth through equity investments with a clear conscience. By investing in this fund, thoughtful investors have an opportunity to undertake investments aligned to their values,” said Chirag Mehta, Chief Investment Officer & Fund Manager, Quantum AMC.

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The scheme will offer direct and regular plans. The scheme will allocate 80%-100% to the equity and equity related instruments of companies following an ethical set of principles, 0%- 20% to the debt and money market instruments in compliance with ethical principles.

The scheme will follow an active investment strategy. The corpus of the scheme will invest in shares of companies meeting an ethical set of principles including of shariah, jainism and other ethical principles, encompassing a broad ethical framework.

“If you are an investor for whom a fund invests is as important as how much fund is invested, with this fund, you can be more intentional with your investments. Ethical investing is an investment approach in which investors invest in businesses that align with their religious or social values and generate financial returns,” said I. V. Subramaniam, MD and Group Head- Equities, Quantum Advisors – Sponsor to Quantum Mutual Fund.

“Sometimes, some businesses are involved in activities which are not good in terms of social values. As an individual investor it can be difficult to identify businesses that conduct their operations in accordance with the social values followed by the investor and at the same time remain profitable. That's where the Ethical Fund is a good fit,” he added.

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