Quantum Fixed Income Team

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1 (Yellow) Medium risk Quantum Dynamic Bond Fund (An Open-ended Debt Scheme with Defined Credit Exposure and Dynamic Maturity Profile ) # NFO date 29/4/2015 to 13/5/2015 Quantum Fixed Income Team Date: 16 April 2015 Quantum Dynamic Bond Fund 1

2 PRODUCT LABEL This product is suitable for investor who are seeking*: Regular income over short to medium term and capital appreciation Investment in Debt / Money Market Instruments / Government Securities Medium risk (YELLOW) * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk Quantum Dynamic Bond Fund 2

3 Debt Fund vs Dynamic Bond Fund Debt Funds or Income Funds are mutual fund schemes which invest in debt securities and money market instruments. They aim to generate income and moderate capital appreciation with relatively lower risk. Dynamic Bond Fund is a debt fund which gives the fund manager flexibility to actively manage the portfolio based on interest rate view. Quantum Dynamic Bond Fund 3

4 Quantum Dynamic Bond Fund Investment Objective To generate income and capital appreciation through active management of portfolio consisting of short term and long term debt and money market instruments. Fund Features Invest in high quality debt and money market instruments. Manage portfolio duration based on market assessments. No Exit load and Low expense ratio. Quantum Dynamic Bond Fund 4

5 Why to invest in Bond Fund To reduce the impact of equity market volatility on overall portfolio. Provide active exposure to interest rate. Tax efficient returns over medium to long term. Free to withdraw investment anytime. Quantum Dynamic Bond Fund 5

6 Why Quantum Dynamic Bond Fund Offers a solution for all your long term debt investment needs. Minimize credit risk in your portfolio. Low expense ratio. No exit load. Quantum Dynamic Bond Fund 6

7 Dividend option: Taxation benefits Investors receive dividends tax free. However mutual fund has to pay dividend distribution tax. Growth option: Investor can take indexation benefit if investing for more than three years. It reduces the total taxable amount relative to inflation. Quantum Dynamic Bond Fund 7

8 Active Interest Rate Management If interest rates expected to rise - Invest in short term securities that mature early and re-invest the proceeds at higher rate. If interest rates expected to fall - Invest in long term bonds to lock in high interest rates. If interest rates fall subsequently the value of bond will increase providing capital growth. Quantum Dynamic Bond Fund 8

9 QDBF: Why Now? Long term bond yields on downward trajectory, making Risk-Return profile favorable towards bonds. Bonds have limited downside due to higher interest accruals and significant upside potential in near future. Rising Equity Market + High Interest Rate = Favorable Time to Invest in Debt Funds. Expected Political and Macro stability will ensure increased capital inflows. Quantum Dynamic Bond Fund 9

10 QDBF - Asset Allocation Quantum Dynamic Bond Fund 10

11 Research & Resources Experienced Fund Management Team with proven track record of managing Debt products. In-house research capability- not dependent on third party research. Investment philosophy is based on SLR principle in that order. (Safety Liquidity Return) Investors primarily exposed to interest rate risk with minimal credit / illiquidity risk in the portfolio. Quantum Dynamic Bond Fund 11

12 Risk Management Strategies Key Risks Interest Rate Risk Credit and Default Risk Liquidity Risk Risk Mitigation Strategies Active interest rate management through altering maturity profile at appropriate time. Macro research team actively tracks and forecasts interest rate outlook. Invest major portion in securities issued by Government and top rated PSU companies. Credit analysts track the credit profile of the issuer and project likely credit changes. Investment team determine the time taken to liquidate any position based on market trades. Quantum Dynamic Bond Fund 12

13 NFO Details - How to Invest Scheme Options Growth Option Monthly Dividend Payout Option Monthly Dividend Re-investment Option. NFO Period 29th April 2015 to 13th May 2015 Lock-in Period Nil Expense Ratio Up to 1.00% Benchmark Index How to Invest Crisil Composite Bond Fund Index New investors Offline, MF Utility, ASBA Existing investors Offline, Online, MF Utility, ASBA Quantum Dynamic Bond Fund 13

14 Disclaimer Mutual fund investments are subject to market risks, read all scheme related documents carefully. Investment Objective: The investment objective of Quantum Dynamic Bond Fund (QDBF) is to generate income and capital appreciation through active management of a portfolio consisting of short term and long term debt and money market instruments. Asset Allocation pattern: Government Bond/Bills: %, PSU Bonds: 0-50%, Certificate of Deposits, Commercial Paper, Short Term Debt Instruments: 0-75% and CBLO/ Repos: 0-100%.Terms of Issue: QDBF is An Open Ended Debt Scheme with Defined Credit Exposure and Dynamic Maturity Profile offering Growth, Monthly Dividend Reinvestment and Monthly Dividend Payout Options. The units will be available at Rs. 10 per unit during the NFO period. Minimum Application Amount: Rs.500 and in multiples of Rs 1. thereafter.. Entry Load: N.A. Exit Load: Nil. Risk Factors: Please visit to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-). Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, Quantum Dynamic Bond Fund 14

15 Disclaimer continued The data in this presentation are meant for general reading purpose only and are not meant to serve as a professional guide/investment advice for the readers. This presentation has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been suggested or offered based upon the information provided herein, due care has been taken to endeavor that the facts are accurate and reasonable as on date. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investment. None of the Sponsors, the Investment Manager, the Trustee, their respective Directors, Employees, Affiliates or Representatives shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the data/information/opinions contained in this presentation. Quantum Dynamic Bond Fund 15