Quantum Mutual Fund announces roadmap for lower expense ratios

Quantum Mutual Fund announced a roadmap for reducing the expense ratios of its funds: Quantum Long Term Equity Fund, Quantum Liquid Fund, Quantum Dynamic Bond Fund and Quantum Gold Fund.

"Since our inception, Quantum has always been focussed on keeping costs low for investors. As we continue to deliver performance and reach out to more people, our Assets Under Management (AUM) will surely grow," said Quantum Mutual Fund in a note. "A nice thing about running a mutual fund is that as its assets under management grow, it typically doesn't need to increase its costs by the same proportion. This means revenues grow more than expenses, and profits go up."

The fund house said it has two choices before it. One, keep all the new profits. Second, share those profits with investors. And the fund house has chosen the second option to reiterate its commitment to its investors, it said.


"Quantum Long Term Equity Fund in 2006, carried an expense ratio of 2.25% (Gross of Tax). As we have grown over the years, we have brought that down to its current 1.25% (Gross of Tax, 1.09% Net of Tax)," the fund house said. "We are now making a pledge that as the AUM of Quantum Long Term Equity Fund hits certain future thresholds, we will lower our fees accordingly," it added.