Quant Mutual Fund files draft papers with Sebi for an index fund, its second passive fund

Quant Mutual Fund has filed a draft document with Sebi for an index fund - Quant Nifty 100 Index Fund. This will be the second passive offering by the fund house as at present the fund house offers a silver ETF.

Quant Nifty 100 Index Fund will aim to provide returns that, before expenses, closely correspond to the total returns of the securities represented by the Nifty 100 Index, subject to tracking error.

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The performance will be benchmarked against Nifty 100 Total Return Index (TRI) and will be managed by Sameer Kate, Sanjeev Sharma, and Yug Tibrewal.

This passive fund will allocate 95-100% in equities and equity related securities constituting Nifty 100 Index and 0-5% in debt & money market instruments.

As part of the fund management process, the scheme may use derivative instruments such as index futures and options, or any other derivative instruments that are permissible or may be permissible in future under applicable regulations. However, trading in derivatives by the scheme shall be for restricted purposes as permitted by the regulations.

The fund will offer regular and direct plans with growth and IDCW options. The minimum application amount will be Rs 5,000 and in multiples of Re 1 thereafter. Units will be allotted in whole figures and the balance amount will be refunded. The minimum application amount for monthly SIP will be Rs 1,000 and in multiples of Re 1 thereafter with minimum six installments.

The tracking error i.e. the annualized standard deviation of the difference in daily returns between the underlying index and the NAV of the Index Fund, based on past one year rolling data shall not exceed 2%. The maximum base expenses ratio (BER) permissible under Regulation 66 will be upto 0.90%.

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The principal invested in the fund will be at “very high” risk according to the riskometer of the fund.

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