INDEX QUANTUM DYNAMIC BOND FUND - QDBF HOW TO READ FACTSHEET. December 2015

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2 INDEX CONTENTS PAGE NO QUANTUM DYNAMIC BOND FUND - QDBF HOW TO READ FACTSHEET

3 QUANTUM VIEW FOR DECEMBER 2015 Equity Outlook Nilesh Shetty - Associate Fund Manager (Equity) he year 2015 can be characterised as the year when irrational exuberance built after the BJP government came into power was Tslowly diffused and expectations were reset. The year started off on a euphoric note on the back of a stellar However a significant gap between expectations and delivery on the political front and continued weak performance of corporate India led to a weak year for equities with Sensex giving a return of -6.0%. Broader indices like the BSE 200 and BSE 500 have continued to outperform the much narrower Sensex giving a return of -2.6% and -2.0% respectively. The lack of correction in midcap and small cap stocks despite very weak macro environment and poor corporate results suggest risk aversion is still low and it s a segment where investors need to be careful while investing. The headline GDP number continues to show very strong growth and was pegged at 7.2% (April Sep 2016), making India the fastest growing large economy in the world. However our interaction with most corporates suggests things have not changed much from two years ago when India reported one of its weakest GDP growth number of ~5%. The below normal monsoons further deferred any near term hopes of possible recovery. Weak rural demand leveraged corporate balance sheets and a global commodity deflation means the private sector is not capable of kick starting the capex cycle. The only hope remains a significant increase in government spending to try and add some traction to an anemic economic recovery. The biggest positive for the India remains benign global crude oil prices which have kept inflation expectations low and has created enough fiscal space for the government kick start the capex cycle. We had always been skeptical about an expected sharp revival of India s GDP given the challenges it faced, we continue to believe that things will get better in India but at a gradual pace as slowly but surely corporate balance sheet improves and consumer demand revives. The year 2015 also marks the start of a normalization of US interest rates. The US Federal Reserve increased federal funds target rate by 25 bps after keeping it at near zero for almost 7 years. The doomsday scenario forecasted for emerging markets never materailised as the event was factored well before the actual increase. Plus the commentary from the Fed suggests any further increase will be gradual and the policy stance continues to remain accommodative. Meaning the world will continue to have easy liquidity in the foreseeable future and India being one the bright spots in the emerging market basket will continue to attract its fair share of this liquidity. FII s invested ~$3 bn in CY15, much lower than historically observed but we continue to believe that given the comfortable external environment and improving domestic fundamentals India will continue to remain one of the preferred investment destinations. The big positive of 2015 has been the comeback of the retail investor. Domestic mutual funds have seen strong inflows in CY15 and have been net buyers of ~ $10 bn. Historically, retail investors have not been the best timers of allocating capital to equities, increasing allocation when valuations have been expensive and withdrawing from markets when valuations have been cheap post a significant correction. Whether this time it will be different only time will tell; but we hope Indian retail investors continue to allocate a portion of their savings to Indian equities ignoring near term volatility to what possibly is one of the best secular investment stories around the world. 3, , , , , , Net Foreign Activity (US$ m) Net Domestic Fund Activity (US$ m) Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Past performance does not indicate the future performance. (Source: Quantum Data, Bloomberg) Outlook We are far more optimistic today than we were a year ago. Correction in stock prices and a gradual improvement in corporate performance, make valuations at the start of 2016 far more comforting than at the start of India remains home to some great entrepreneurs building great long term businesses irrespective of near term hiccups related to weak political drive or global uncertainty. Any further correction from current levels could make risk reward extremely favourable and could potentially offer a great buying opportunity. Investors looking to build a long term portfolio would be advised to take advantage of the same. Data Source: Bloomberg Debt Outlook Murthy Nagarajan - Head - Fixed Income 015 year has been a year of hits and misses, macro calls on inflation and liquidity moved as per expectations, which facilitated the RBI to 2move on monetary policy front (and there has been a 125 bps cuts in Repo rates during the Calendar year). However the ten year yields barely moved as the same was trading at % levels in the beginning of the year and is now trading in the band of levels. The other factor that affected bond markets is the spread compression of bonds over Government securities, AAA PSU Bonds compressed from 60 basis points to 40 basis points. The spreads should have widened as corporate profitability was affected due to weak external demand and absence of pricing power of corporates. Weak pricing power of corporates is reflected in negative WPI prevailing for the last 13 months. At the start of 2015, the best case repo rate forecast was 7.0%. That s been bettered with the actual Repo rate standing at 6.75%. We expected the 10 year yield to trade below 7.5% (50 bps term spread) in The Indian 10 year government bond yield fell marginally below 7.5% once at the start of the year and now at 7.75% currently trades at a 100 bps spread over the Repo rate. Chart I : Term Spreads widest in a while Past performance does not indicate the future performance. (Source: Quantum Data, Bloomberg) We are of the view that there will not be any major rate changes in We forecast for one 25 bps cut in Q2 Cy16 on a good budget outcome and better monsoon expectations. That would take the Repo rate to 6.5%. For the Repo rate to then fall lower, CPI inflation has to hinge near the 4.5% mark. Monetary policy though will remain accommodative. We see that Bank deposit growth tends to slow down at lower interest rates and thus the need to incentivize the saver appropriately will ensure that bank deposit rates do not fall as low as seen in the previous episodes. QUANTUM VIEW 3

4 We are of the view that the terminal Repo rate in this cycle will not go below the 6.0% mark, as at lower rate levels the RBI s Real Rate requirement should ideally move to the higher band of 2.0%. So, 4.0% inflation + 2.0% Real Interest rate = 6.0% nominal repo rate. We have also seen that Bank deposit growth slows down at lower interest rates and thus the need to incentivize the saver appropriately will ensure that bank deposit rates do not fall as low as seen in the previous episodes. This is a significant development as the CPI inflation mandate and Real Rate framework will make the monetary policy rates to move in a narrower band. We are of the view that the Indian Repo rate shall be in the range between the 6.0%-8.0% mark as against the % band that we have seen historically. Also, with inflation risk being priced by the RBI (in the form of positive real rate), the market will overtime begin to remove inflation risk premium in pricing government bonds. Longer tenor Government bonds when thus priced only for term premium and liquidity risk should also move in a narrower band of say, 6.5% - 8.5%, as against 5.0% - 9.5% range seen since the start of this century. Chart II: India monetary policy framework transformation yields have behaved this year has been the demand/ supply dynamics. Although, yields have remained attractive from a monetary policy standpoint, but lack of foreign inflows (restricted by RBI); lower inflows into Mutual Funds/Insurance and a bad loan battered banking system looking to book profits has resulted in lack of strong buying power in the market. With the expected increase in fiscal deficit and in the absence of a sustained source of demand, it will result in bond term spreads remaining higher. We understand government s fiscal compulsions with the increase in government salary and pension obligations and the drop in nominal GDP growth leading to lower taxes. And the need for them to kick starts the economic recovery without which the banks bad asset problems and India Inc indebtedness problems will continue to hinder capex activity. But they chose the fiscal prudence way in 2014 and will do well to stick with it. The RBI and foreign investors will allow them some leeway if and only if they see a global trend away from fiscal austerity. 8 years of global monetary policy stimulus hasn t really got the world any higher growth. And recent political victories in the western world seem to predict a shift away from austerity and fiscal rectitude. Even then, the Indian government should tiptoe its fiscal consolidation plan. RBI Liquidity management The liquidity framework followed by RBI, provides sufficient money into the system, but it still always feels like the market liquidity situation is tight. We will await changes, if any to the liquidity management operations, especially at a time when the stated monetary policy stance remains one of accommodation. We have seen foreign inflows dry up in Equities, as earnings growth has manifested only in sell-side brokers excel sheets. Also there has been a healthy reset to the Modi expectations trade, which is reflected in Equity market prices and also in the currency. The RBI after buying FX heavily in 2014 and start of 2015 has had little opportunity to add on its FX reserves kitty in the last 6 months. Past performance does not indicate the future performance. (Source: Quantum Data, Bloomberg) Chart IV: Liquidity management crucial for rate transmission Chart III: Indian bond yields will move in a tighter range Past performance does not indicate the future performance. (Source: Quantum Data, Bloomberg) Past performance does not indicate the future performance. (Source: Quantum Data, Bloomberg) Chart V : Will RBI be able to build FX reserves in 2016? Risks to our outlook/ things to watch in 2016 Fiscal Prudence: Recent statements by the finance ministry and the economic advisor on the government thinking about relaxing the fiscal consolidation roadmap are very disconcerting. Having extended the fiscal consolidation plan by a year in the FY 16 budget looking to relax it again next year is going to stretch the market credibility line in a big way. We felt the government missed a big trick in 2014; where post their thumping win and the extreme positive sentiment towards India, they could have increased the fiscal deficit for 2014/15 to clean up the fiscal; economic and banks balance sheet. They were, we believe, ill-advised then and the government is being illadvised now again. Having staked its credibility, going back on fiscal prudence promises is like going to back to the fire. Any increase in fiscal deficit will be taken as a negative sign and we will review our investment framework laid above. A big part in the way bond Past performance does not indicate the future performance. (Source: Quantum Data, Bloomberg) 4 QUANTUM VIEW

5 We would like to see RBI ensuring that Core Liquidity remains positive. With Liquidity remaining in deficit, monetary transmission will always appear to be limited. In the absence of foreign inflows, it will be important to see RBIs long term liquidity management and currency management operations. From September 2016, the FCNR Deposits raised during end 2013 will start maturing. Although the RBI has the repayment covered, it will be important to see how they manage liquidity and market sentiment. Global investors allocation to India Indian fixed income remains a sea of calm in an ocean of turbulence. In 2014 and 2015, India has stood out amongst the Emerging Markets even as a local currency play. The combination of : Lower Oil prices supporting the twin deficit ; a prudent Central Banker astutely managing inflation; currency and forex reserves; and a strong political mandate driving in foreign inflows has provided macro stability and has resulted in significant outperformance over EM peers. Chart VI: INR not fragile anymore? Past performance does not indicate the future performance. (Source : Quantum Data, Bloomberg) [All currency values are rebased to 100 on to show their comparative movement] The RBI has allowed for gradual increase in foreign investor limits and given that Global investors are so grossly under-allocated to this attractive multi-year India fixed income story, we are of the view that the investment limits in government bonds shall be regularly utilized. Inflation Trajectory - India has had two consecutive bad monsoons. There is expectation of La Nina in the next year, which should result in a good monsoon and therefore be good for the largely rain dependent Indian Economy. The Indian farmer and with it India s rural story is broken by bad monsoons; lower income growth and overall lower wealth effect. Good monsoon should prevent the government from increasing support prices and the supply should ensure that food prices remain under check. We are of the view that there shall be some increase in CPI inflation on the back of increase in rents due to salary increase for government employees and on the back of the expected increase in service tax in the February budget. We account for a rebound in commodity prices in 2016, but for it to seep into CPI inflation will be a 9-15 month lag. Expect CPI to range lower towards 4.0% by Mid-2016 and the rise back towards the 5.0% mark by March Oil and INR: No one expected Oil to go below US $100 in 2014 and no one expects it to go beyond US $60 now. We believe Oil is as much political as it is demand/supply and hence feel comfortable in planning with a higher buffer price. Oil is India s single biggest macro risk. At $60/brl, we do not see a major threat to India s inflation and fiscal outlook. As the government should be able to adjust the taxation to smoothen the price increase. But if the Oil increase happens with no commensurate increase in global growth and/or dollar weakness, then the INR and the trade account will suffer. We are of the view that the INR shall trade in a band in 2016; although we are also of the view that the dollar might weaken marginally in Any large appreciation bias in the INR will be controlled by the RBI through US Dollar purchases and boosting its FX reserves. FED outlook: Fed Hiked interest rates as expected by 25 basis points and took it to range, further hikes are contingent of the evolving CPI inflation trajectory. Inflation outlook may determine the pace and the extent of rate hikes. The Federal Reserve is expected to be behind the curve when hiking rates due to implication of strong dollar and its effect on manufacturing activity in the US. Data Source: Bloomberg, RBI Gold Outlook Chirag Mehta - Fund Manager (Commodities) old prices fell sharply this year to lows not seen since The current low in prices marks a fall of -10.9% this year and -45.5% from Gits peak in The stronger dollar, a divergent monetary policy in terms of increase in interest rates in the U.S, the global deflationary forces at play and lastly the opportunity costs in a risk propelled liquidity induced environment ensuring lower gold prices. The Fed s dilly-dallying over the rate hike and the surrounding fears and speculation did manage to provide counter trend rallies creating volatility but eventually the downtrend that dominated with prices falling to year low following the rate hike. Market expectations surrounding the timing of interest rates increase in the U.S has been the large determinant factor of gold prices in The central banks have been running experimental central banking for years now with interest rates closer to the zero mark and heightened levels of quantitative easing program. A move towards policy normalization was almost a given and needed to happen sooner rather than later. This unfolding scenario with signs of some stability in the U.S economy created grounds for divergence in monetary policies and thereby a resurging dollar. At the same time, we also saw lower demand for gold as the world flocked to risky assets given the central banking implied assurance and plentiful liquidity, making gold markets a short sellers den. Outlook We have run past the Fed rate hike and the markets should now be focusing on the extent of rate hikes. The hike was communicated very effectively and the Fed acted in line with the expectations it had created, while ensuring that it got the message across that futures hikes will be gradual, thereby reassuring investors everywhere that there is no reason to panic. In other words, the Fed retained its credibility. The devil lies in the details. Fed, while hawkish, is careful not to disturb the markets' equanimity. Forecasts by the Fed of the future path of rates still imply a fairly steady upward progress: 100 basis points of hikes next year and another 100 the year after. That s not how the market sees it, nor is it consistent with noises Yellen was making at her post-decision press conference, where she emphasized that she "strongly doubts" the likelihood of evenly spaced, "mechanical" rate rises. The markets post the hike were pricing in an interest rates of about % whereas the Fed envisages an interest rates of about 1.45% wherein lies a big disconnect. Gold prices could be under some pressure in the short term as the market anticipates further rate hikes next year. Though, we anticipate downsides to be limited for gold from hereon. Fed will not embark on an aggressive tightening until they see a risk of runaway inflation. In either of the cases, Fed will stay behind the curve and do only little and keep real rates negative for much longer. Markets will continue to assess and re-assess the length of the tightening cycle creating volatility in gold and other asset markets. On the other end, the fragile economic recovery will witness further strain as the Fed embarks on its necessary monetary policy normalisation. Unfortunately, the US economy is now so rife with speculative activities and mal-investments that could cause a downturn by any further attempts by the Fed to further 'normalise' its monetary policy. The potential for underlying weak economic growth is simply another factor that could keep a bid in place for gold. It s a matter of fact that the dollar strength is hurting gold prices. The US Dollar, this year, has gained about +9.4%, gold has declined about -10.9%. Therefore it s important to gauge how the dollar is likely to behave. In the U.S., all through this year, earnings have been falling dramatically, barring the QUANTUM VIEW 5

6 financial sector. Earnings for energy and metals companies have been the hardest hit. Earnings overall in the U.S. are now in decline and likely to record two successive quarterly declines. In other words, the U.S economy seems to be staring at an earnings recession. Fed s own labour market conditions index change has been declining and approaching the zero mark, IIP data has been poor providing indications of the fragile condition of the U.S. economy. The strength in the dollar also seems to be contributing to this weakness. This is true not only because of a decline in earnings from uncompetitive exports, but also, with a strong dollar, consumers can purchase imported goods more efficiently as well. Now, with most other regions of the world all engaged in massive QE and competitive devaluation of their currencies, a rate rise by the Fed now would only serve to cause the dollar to rise even further, leading to an even greater decline in profits. In short, with a strong dollar, the U.S. is importing deflation and in the process hurting corporate profits. The widening policy divergence among major central banks is going to have a major impact on currencies and create the real potential for a currency war. At signs of crisis, the Fed could potentially cut rates back to zero, go negative with the interest on reserves (punish banks for not lending out their reserves), carry out more asset purchases. Such an outcome would be incredibly bullish for gold. We restate our view that beyond the short term; as the market figures pan out that the US Fed will stay behind the curve and do only little and keep real rates negative for much longer, gold should start moving northwards. What may propel gold prices moving higher is the prospect of unwinding of short positions which can be expected post the rate hike normalization jitters as the market starts focusing on the extent of rate hikes which are likely to be restrained than many anticipate. Until then, we expect physical demand and central bank buying to support prices at lower levels helping limit downsides in gold. Past performance does not indicate the future performance. (Source: Quantum Data, Bloomberg) The price movement of gold in Rupee and US dollar terms is taken with a common base 100. Data Source: Bloomberg, World Gold Council Disclaimer: The views expressed above are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article 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 solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. Mutual fund investments are subject to market risks read all scheme related documents carefully. 6 QUANTUM VIEW

7 QUANTUM LONG TERM EQUITY FUND An Open ended Equity Nature of Investment Objective Features An Open-ended Equity Equity The investment objective of the is to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the S&P BSE 200 Index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets. Index Ÿ S&P Long BSE 30 term Total capital Return appreciation. Index S&P BSE 30 Total Return Index Ÿ Fund Manager Mr. Mr. Investments Atul Atul Kumar Kumar ~ in ( equity Since Since November November and equity 15, 15, related 2006) 2006) securities of companies in S&P BSE 200 index. Fund Manager s Total Experience Ÿ14 16 yrs. High Risk (BROWN) Associate Fund Manager Mr. Nilesh Shetty (Since March 28, 2011) Total Experience yrs. Inception Date (Date of Allotment) 13-Mar Mar-06 Current Expense Ratio 1.25% 1.25% Total Expense Ratio (Weighted Average for the Month) 1.25% Growth Dividend (Dividend Option will in turn have two Investment Options Growth & Dividend (Dividend Option will in turn have two Facilities, Dividend Payout Facility and Dividend Re-investment Facility) Minimum Application Amount ( Under each Option) Purchase : ` 500/- and in multiples of ` 1/- thereafter. Purchase : ` 500/- and in Rs. multiples of ` 1/- thereafter/ 50 units. Declaration of Net Asset Value (NAV) Every Business Day Redemption Proceeds Normally despatched within 3-4 Business Days. Entry/ Sales Load Not Applicable Upfront commission to distributors will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor. Exit Load Repurchase/ Redemption/Switch Out - On or before 180 days from the date of allotment 4.00%, after 180 days but on or before 365 days from the date of allotment 3.00%, after 365 days but on or before 545 days from the date of allotment 2.00%, after 545 days but on or before 730 days from the date of allotment 1.00%, after 730 days from the date of allotment Nil # Taxation Product Labeling Name of the Quantum Long Term Equity Fund (An Open-ended Equity ) Investors understand that their principal will be at Moderately High Risk *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. NAV (as of December 31, 2015) NAV per Unit Growth Option Dividend Option This product is suitable for investors who are seeking* Long term capital appreciation and current income Investments in equity and equity related securities of companies in S&P BSE 200 index. Tax on Long Term Capital Gains - Nil Tax on Short Term Capital Gains - 15% #The mentioned Tax Rates shall be increased by applicable surcharge, if any Education 2% and Secondary higher education 1% where ever as applicable. Equity oriented schemes will also attract Securities Transaction Tax 0.001% at the time of redemption and switch to other schemes. TRANSACTION CHARGES: In accordance with the SEBI Circular No.Cir / IMD / DF/13/2011 dated August 22, 2011, the AMC is allowed to deduct transaction charges of ` 100 for existing investors and ` 150 for a first time investor per subscription of ` 10,000 /- and above for the transaction / application received through distributors. The transaction charges shall be deducted by the AMC from the subscription amount received from the investor and paid to the distributor and the balance will be invested in the. Investors are requested to note that Quantum Mutual Fund is a direct to investor s Mutual Fund and no transaction charges shall be deducted from the investment amount for transactions / applications received from the distributor and full subscription amount will be invested in the. Fund Size as on *Average AUM #Absolute AUM (` in crores) (` in crores) Growth Option Dividend Option Total *Cumulative Daily AuM /No of days in the month #AuM as on December 31, 2015 Low LOW Riskometer Moderate Moderately High High HIGH QUANTUM LONG TERM EQUITY FUND 7

8 Quantum Long Term Equity Fund Performance as on December 31, 2015 The is co-managed by Atul Kumar and Nilesh Shetty. ~ Other schemes managed by Mr. Atul Kumar refer page no. 32 SCHEME PERFORMANCE (FUND MANAGER-WISE) A. Cumulative performance Date NAV per Unit Returns (%) ^ # # 31-Dec-14 Last 1 Year ,349 9,632 9, Dec-13 Last 2 Years ,383 12,701 12, Dec-12 Last 3 Years ,701 14,061 13,444 ^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option. Returns up to 1 year period are Absolute Returns. Returns greater than 1 year period are compounded annualized (CAGR). # S&P BSE 30 TRI ## S&P BSE shows the current value of ` 10,000/- invested at the beginning of a given period B. Discrete 12 month performance Returns (%) ^ ^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option. Returns up to 1 year period are Absolute Returns. Returns greater than 1 year period are compounded annualized (CAGR). # S&P BSE 30 TRI ## S&P BSE shows the current value of ` 10,000/- invested at the beginning of a given period ** Inception Date: March 13, Since inception returns are calculated on NAV of ` 10 invested at inception. ^^Standard Deviation: 13.61% Beta: 0.93 Sharpe Ratio: 0.66 Past performance may or may not be sustained in the future. # S&P BSE 30 TRI # ## S&P BSE Sensex. V a l u e o f I n v e s t m e n t o f ` 1 0, 0 0 # Dec 31, 2014 to Dec 31, ,349 9,632 9,497 Dec 31, 2013 to Dec 31, ,898 13,187 12,989 Dec 31, 2012 to Dec 31, ,916 11,070 10,898 Since Inception ** ,410 27,862 24,175 SIP Performance of Quantum Long Term Equity Fund as on December 31, 2015 Since Inception SIP 7 Year SIP 5 Year SIP 3 Year SIP 1 Year SIP Total Amount Invested (Rs. 000) 1, Mkt Value as on December 31, 15 (Rs. 000) 2, , Returns (XIRR*) (%) Returns (XIRR*) (%) # Returns (XIRR*) (%) ## Load is not taken into consideration and Returns are for Growth Option using applicable NAV on the SIP day (5th of every month). Return on SIP and are annualized and compounded investment return for cash flows resulting out of uniform and regular monthly subscriptions as on 5th day of every month (in case 5th is a non-business Day, then the next Business Day) and have been worked out using the Excel spreadsheet function known as XIRR. XIRR calculates the internal rate of return for series of cash flow. Assuming `. 10,000 invested every month on 5th day of every month (in case 5th is a non-business Day, then the next Business Day), the 1 year, 3 years, 5 years, 7 years and since inception returns from SIP are annualized and compounded investment return computed on the assumption that SIP installments were received across the time periods from the start date of SIP from the end of the relevant period viz. 1 year, 3 years, 5 years, 7 years and since Inception. *XIRR - XIRR calculates the internal rate of return to measure and compare the profitability of series of investments. Brokerage & Commissions Paid Brokerages Paid for investments for ` 2,11, Distributor Commissions Paid till date NIL 8 QUANTUM LONG TERM EQUITY FUND

9 Portfolio as on December 31, 2015 Name of Instrument Industry / Rating Quantity Market Value In Lakhs * Cash & Cash Equivalents ^^Portfolio Turnover Ratio (Last one year): 6.74% Industry Allocation (% of Net Assets) as on December 31, 2015 Note: Standard Deviation, Sharpe Ratio & Beta are calculated on Annualised basis using 3 years history of monthly returns. Risk Free Rate assumed to be 7.03% (FBIL Overnight MIBOR for 31st Dec, 2015) for calculating Sharpe Ratio. ^^ Definitions Standard deviation measures historical volatility. A high standard deviation suggests high volatility, while lower standard deviation would refer to more stability. Beta is the tendency of a fund's returns to respond to market swings. A beta of 1 indicates that the fund price will move with the market. A beta of less than 1 means that thesecurity will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market. Sharpe Ratio is used to characterise how well the return of an asset compensates the investor for the risk taken. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been. Portfolio Turnover Ratio is the percentage of a funds assets that have changed over the course of a year. % to Net Asset EQUITY & EQUITY RELATED A) Listed /Awaiting listing on the Stock Exchange 1. Bajaj Auto Ltd Auto 1,46,233 3, Infosys Ltd Software 2,89,618 3, Hero MotoCorp Ltd Auto 1,13,355 3, Housing Development Finance Corporation Ltd Finance 2,37,204 2, Tata Consultancy Services Ltd Software 1,02,058 2, Petronet LNG Ltd Gas 7,56,155 1, NTPC Ltd Power 12,96,265 1, Tata Chemicals Ltd Chemicals 4,68,057 1, Indian Oil Corporation Ltd Petroleum Products 4,07,489 1, The Indian Hotels Company Ltd Hotels, Resorts And Other Recreational Activities 14,83,999 1, Kotak Mahindra Bank Ltd Banks 2,37,408 1, Tata Motors Ltd Auto 4,30,123 1, Oil & Natural Gas Corporation Ltd Oil 5,78,095 1, GAIL (India) Ltd Gas 3,61,860 1, Power Grid Corporation of India Ltd Power 9,13,744 1, State Bank of India Banks 5,58,356 1, Exide Industries Ltd Auto Ancillaries 8,31,997 1, Maruti Suzuki India Ltd Auto 23,687 1, Tata Steel Ltd Ferrous Metals 4,02,185 1, PTC India Ltd Power 15,55,143 1, Bharti Airtel Ltd Telecom - Services 3,01,919 1, Wipro Ltd Software 1,75, Voltas Ltd Construction Project 2,73, ACC Ltd Cement 41, The Indian Hotels Company Ltd - CCD - 05/03/2016 Hotels, Resorts And Other Recreational Activities 2,82, ICICI Bank Ltd Banks 88, B) Unlisted NIL NIL NIL Total of all Equity 41, MONEY MARKET INSTRUMENTS A) Treasury Bills (T-Bill) Days Tbill (MD 24/11/2016) Sovereign 50, Total of T-Bill B) Collateralised Borrowing & Lending Obligation (CBLO)* 4, Total of Money Market Instruments 4, Net Receivable/(payable) Grand Total 46, Auto Software Power Gas Banks Finance Hotels, Resorts And Other Recreational Activities Chemicals Petroleum Products Oil Auto Ancillaries Ferrous Metals Telecom - Services Construction Project Cement 1.22% 2.25% 2.21% 1.91% 3.01% 2.62% 4.39% 4.05% 3.76% 7.09% 6.88% 6.46% 9.10% 14.36% 20.53% 0% 5% 10% 15% 20% 25% QUANTUM LONG TERM EQUITY FUND 9

10 Nature of Features An Open-ended Equity Linked Savings with a lock-in period of 3 years Investment Objective The investment objective of the is to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the S&P BSE 200 Index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets. Index S&P BSE 30 Total Return Index Fund Manager Mr. Atul Kumar ~ ( Since December 10, 2008) Fund Manager s Total Experience 16 yrs. Inception Date (Date of Allotment) December 23, 2008 Current Expense Ratio 1.25% Investment Options QUANTUM TAX SAVING FUND An open ended Equity Linked Saving with a lock-in period of three years Total Expense Ratio (Weighted Average for the Month) 1.24% Minimum Application Amount ( Under each Option) Growth & Dividend Purchase: ` 500/- and in multiples of ` 500/- thereafter. Purchase: ` 500/- and in multiples of ` 500/- thereafter. Lock-in Declaration of Net Asset Value (NAV) Redemption Proceeds Entry/ Sales Load Exit Load Taxation # 3 years from the date of allotment of the respective Units Every Business Day Normally despatched within 3-4 Business Days. Not Applicable Upfront commission to distributors will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor. Nil Tax on Long Term Capital Gains - Nil Tax on Short Term Capital Gains - 15% Product Labeling Name of the Quantum Tax Saving Fund (An Open-ended Equity Linked Savings ) This product is suitable for investors who are seeking* Long term capital appreciation Investments in equity and equity related securities of companies in S&P BSE 200 index and to save tax u/s 80 C of the Income Tax Act. Investments in this product are subject to lock in period of 3 years. Low Riskometer Moderate Moderately LOW HIGH Investors understand that their principal will be at Moderately High Risk High High * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. #The mentioned Tax Rates shall be increased by applicable surcharge, if any Education 2% and Secondary higher education 1% where ever as applicable. Equity oriented schemes will also attract Securities Transaction Tax 0.001% at the time of redemption and switch to other schemes. TRANSACTION CHARGES: In accordance with the SEBI Circular No.Cir / IMD / DF/13/2011 dated August 22, 2011, the AMC is allowed to deduct transaction charges of ` 100 for existing investors and ` 150 for a first time investor per subscription of ` 10,000 /- and above for the transaction / application received through distributors. The transaction charges shall be deducted by the AMC from the subscription amount received from the investor and paid to the distributor and the balance will be invested in the. Investors are requested to note that Quantum Mutual Fund is a direct to investor s Mutual Fund and no transaction charges shall be deducted from the investment amount for transactions / applications received from the distributor and full subscription amount will be invested in the. NAV (as of December 31, 2015) NAV per Unit Growth Option Dividend Option Fund Size as on *Average AUM (` in crores) #Absolute AUM (` in crores) Growth Option Dividend Option Total *Cumulative Daily AuM /No of days in the month #AuM as on December 31, QUANTUM TAX SAVING FUND

11 Quantum Tax Saving Fund Performance as on December 31, 2015 ~ Other schemes managed by Mr. Atul Kumar refer page no. 32 SCHEME PERFORMANCE (FUND MANAGER-WISE) A. Cumulative performance Date NAV per Unit Returns (%) ^ # Dec 31, 2014 to Dec 31, ,245 9,632 9,497 Dec 31, 2013 to Dec 31, ,003 13,187 12,989 Dec 31, 2012 to Dec 31, ,889 11,070 10,898 Since Inception ** ,850 29,889 26,962 SIP Performance of Quantum Tax Saving Fund as on December 31, 2015 # 31-Dec-14 Last 1 Year ,245 9,632 9, Dec-13 Last 2 Years ,346 12,701 12, Dec-12 Last 3 Years ,621 14,061 13,444 ^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option. Returns up to 1 year period are Absolute Returns. Returns greater than 1 year period are compounded annualized (CAGR). # S&P BSE 30 TRI ## S&P BSE shows the current value of ` 10,000/- invested at the beginning of a given period B. Discrete 12 month performance ^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option. Returns up to 1 year period are Absolute Returns. Returns greater than 1 year period are compounded annualized (CAGR). # S&P BSE 30 TRI ## S&P BSE shows the current value of ` 10,000/- invested at the beginning of a given period ** Inception Date: Dec 23, Since inception returns are calculated on NAV of ` 10 invested at inception. Since Inception SIP 5 Year SIP 3 Year SIP 1 Year SIP Total Amount Invested (Rs. 000) Mkt Value as on December 31, 15 (Rs. 000) 1, Returns (XIRR*) (%) Returns (XIRR*) (%) # Returns (XIRR*) (%) ## ^^Standard Deviation: 13.79% Beta: 0.95 Sharpe Ratio: 0.64 Past performance may or may not be sustained in the future. # S&P BSE 30 TRI ## S&P BSE Sensex. Load is not taken into consideration and Returns are for Growth Option using applicable NAV on the SIP day (5th of every month). Return on SIP and are annualized and compounded investment return for cash flows resulting out of uniform and regular monthly subscriptions as on 5th day of every month (in case 5th is a non-business Day, then the next Business Day) and have been worked out using the Excel spreadsheet function known as XIRR. XIRR calculates the internal rate of return for series of cash flow. Assuming `. 10,000 invested every month on 5th day of every month (in case 5th is a non-business Day, then the next Business Day), the 1 year, 3 years, 5 years and since inception returns from SIP are annualized and compounded investment return computed on the assumption that SIP installments were received across the time periods from the start date of SIP from the end of the relevant period viz. 1 year, 3 years, 5 years and since Inception. *XIRR - XIRR calculates the internal rate of return to measure and compare the profitability of series of investments. Brokerage & Commissions Paid Brokerages Paid for investments for ` 17, Distributor Commissions Paid till date Returns (%) ^ NIL # V a l u e o f I n v e s t m e n t o f ` 1 0, 0 0 # QUANTUM TAX SAVING FUND 11

12 Portfolio as on December 31, 2015 Name of Instrument Industry Quantity Market Value In Lakhs % to Net Asset EQUITY & EQUITY RELATED A) Listed /Awaiting listing on the Stock Exchange 1. Bajaj Auto Ltd Auto 11, Infosys Ltd Software 23, Housing Development Finance Corporation Ltd Finance 19, Hero MotoCorp Ltd Auto 8, Tata Consultancy Services Ltd Software 8, Petronet LNG Ltd Gas 65, Tata Chemicals Ltd Chemicals 37, The Indian Hotels Company Ltd Hotels, Resorts And Other Recreational Activities 1,23, Indian Oil Corporation Ltd Petroleum Products 32, NTPC Ltd Power 93, Tata Motors Ltd Auto 34, Kotak Mahindra Bank Ltd Banks 18, Power Grid Corporation of India Ltd Power 86, GAIL (India) Ltd Gas 30, Oil & Natural Gas Corporation Ltd Oil 45, State Bank of India Banks 45, Exide Industries Ltd Auto Ancillaries 67, Tata Steel Ltd Ferrous Metals 35, Bharti Airtel Ltd Telecom - Services 24, PTC India Ltd Power 1,22, Maruti Suzuki India Ltd Auto 1, Voltas Ltd Construction Project 21, Wipro Ltd Software 12, ACC Ltd Cement 3, The Indian Hotels Company Ltd - CCD - 05/03/2016 Hotels, Resorts And Other Recreational Activities 23, ICICI Bank Ltd Banks 7, B) Unlisted NIL NIL NIL Total of all Equity 3, MONEY MARKET INSTRUEMENTS A) Collateralised Borrowing & Lending Obligation (CBLO)* Net Receivable/(payable) Grand Total 3, * Cash & Cash Equivalents ^^Portfolio Turnover Ratio (Last one year): 6.94% Industry Allocation (% of Net Assets) as on December 31, 2015 Auto Software Power Gas Banks Finance Hotels, Resorts And Other Recreational Activities Chemicals Petroleum Products Oil Auto Ancillaries Ferrous Metals Telecom - Services Construction Project Cement 1.15% 2.17% 1.88% 2.94% 2.63% 2.46% 4.51% 4.04% 3.66% Note: Standard Deviation, Sharpe Ratio & Beta are calculated on Annualised basis using 3 years history of monthly returns. Risk Free Rate assumed to be 7.03% (FBIL Overnight MIBOR for 31st Dec, 2015) for calculating Sharpe Ratio. ^^ Definitions Standard deviation measures historical volatility. A high standard deviation suggests high volatility, while lower standard deviation would refer to more stability. Beta is the tendency of a fund's returns to respond to market swings. A beta of 1 indicates that the fund price will move with the market. A beta of less than 1 means that thesecurity will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market. Sharpe Ratio is used to characterise how well the return of an asset compensates the investor for the risk taken. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been. Portfolio Turnover Ratio is the percentage of a funds assets that have changed over the course of a year. 6.77% 6.45% 7.54% 9.03% 14.04% 19.71% 0% 5% 10% 15% 20% 25% 12 QUANTUM TAX SAVING FUND

13 Nature of Features An Open-ended Equity Fund of Funds Investment Objective The investment objective of the scheme is to generate long-term capital appreciation by investing in a portfolio of open-ended diversified equity schemes of mutual funds registered with SEBI. There can be no assurance of positive returns from following the stated investment strategy. Index S&P BSE 200 Index Fund Manager Mr. Chirag Mehta ~ (Since November 1, 2013) Fund Manager s Total Experience 11 yrs. Inception Date (Date of Allotment) July 20, 2009 Current Expense Ratio 0.50% Investment Options Minimum Application Amount ( Under each Option) Declaration of Net Asset Value (NAV) Redemption Proceeds Entry/ Sales Load QUANTUM EQUITY FUND OF FUNDS An Open ended Equity Fund of Funds Total Expense Ratio (Weighted Average for the Month) 0.50% Growth & Dividend (Dividend Option will in turn have two Facilities, Dividend Payout Facility and Dividend Re-investment Facility) Purchase: ` 500/- and in multiples of ` 1/- thereafter. Purchase: ` 500/- and in multiples of ` 1/- thereafter/ 50 units Every Business Day Normally despatched within 3-4 Business Days. Not Applicable Upfront commission to distributors will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor. Exit Load Repurchase/ Redemption/ Switch Out - On or before 365 days from the date of allotment 1.5 %. Product Labeling Name of the Quantum Equity Fund of Funds (An Open-ended Equity Fund of Funds ) Tax on Capital Gains * This product is suitable for investors who are seeking* Long term capital appreciation Investments in portfolio of open-ended diversified equity schemes of mutual funds registered with SEBI whose underlying investments are in equity and equity related securities of diversified companies * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Resident Individuals & HUF FII s / Overseas Financial Organisations Long Term 20% with Indexation 10% without Indexation Partnership Firm 20% with Indexation Non Resident Indians 10% without Indexation (on transfer of long term capital assets being unlisted securities) Indian Companies 20% with Indexation Foreign Companies 10% without Indexation (on transfer of long term capital assets being unlisted securities) Short Term Maximum 30% 30% 30% Maximum 30% 30% 40% Low LOW Riskometer Moderate Moderately HIGH Investors understand that their principal will be at Moderately High Risk High High * The mentioned Tax Rates shall be increased by applicable surcharge, if any Education 2% and Secondary higher education 1% where ever as applicable. TRANSACTION CHARGES: In accordance with the SEBI Circular No.Cir / IMD / DF/13/2011 dated August 22, 2011, the AMC is allowed to deduct transaction charges of ` 100 for existing investors and ` 150 for a first time investor per subscription of ` 10,000 /- and above for the transaction / application received through distributors. The transaction charges shall be deducted by the AMC from the subscription amount received from the investor and paid to the distributor and the balance will be invested in the. Investors are requested to note that Quantum Mutual Fund is a direct to investor s Mutual Fund and no transaction charges shall be deducted from the investment amount for transactions / applications received from the distributor and full subscription amount will be invested in the. NAV NAV per Fund Size as on *Average AUM (as of December 31, 2015) Unit (` in crores) Growth Option Dividend Option #Absolute AUM (` in crores) Growth Option Dividend Option Total *Cumulative Daily AuM /No of days in the month #AuM as on December 31, 2015 QUANTUM EQUITY FUND OF FUNDS 13

14 Quantum Equity Fund of Funds Performance as on December 31, 2015 ~ Other schemes managed by Mr. Chirag Mehta refer page no. 33 SCHEME PERFORMANCE (FUND MANAGER-WISE) A. Cumulative performance Date NAV per Unit Returns (%) ^ # SIP Performance of Quantum Equity Fund of Funds as on December 31, 2015 # 31-Dec-14 Last 1 Year ,473 9,852 9, Dec-13 Last 2 Years ,779 13,347 12, Dec-12 Last 3 Years ,416 13,931 13,444 ^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option. Returns up to 1 year period are Absolute Returns. Returns greater than 1 year period are compounded annualized (CAGR). # S&P BSE 200 INDEX ## S&P BSE shows the current value of ` 10,000/- invested at the beginning of a given period B. Discrete 12 month performance ^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option. Returns up to 1 year period are Absolute Returns. Returns greater than 1 year period are compounded annualized (CAGR). # S&P BSE 200 INDEX ## S&P BSE shows the current value of ` 10,000/- invested at the beginning of a given period ** Inception Date: July 20, Since inception returns are calculated on NAV of ` 10 invested at inception. Since Inception SIP 5 Year SIP 3 Year SIP 1 Year SIP Total Amount Invested (Rs. 000) Mkt Value as on December 31, 15 (Rs. 000) 1, Returns (XIRR*) (%) Returns (XIRR*) (%) # Returns (XIRR*) (%) ## ^^Standard Deviation: 15.49% Beta: 1.09 Sharpe Ratio: 0.69 Past performance may or may not be sustained in the future. # S&P BSE 200 INDEX ## S&P BSE Sensex. Load is not taken into consideration and Returns are for Growth Option using applicable NAV on the SIP day (5th of every month). Return on SIP and are annualized and compounded investment return for cash flows resulting out of uniform and regular monthly subscriptions as on 5th day of every month (in case 5th is a non-business Day, then the next Business Day) and have been worked out using the Excel spreadsheet function known as XIRR. XIRR calculates the internal rate of return for series of cash flow. Assuming `. 10,000 invested every month on 5th day of every month (in case 5th is a non-business Day, then the next Business Day), the 1 year, 3 years, 5 years and since inception returns from SIP are annualized and compounded investment return computed on the assumption that SIP installments were received across the time periods from the start date of SIP from the end of the relevant period viz. 1 year, 3 years, 5 years and since Inception. *XIRR - XIRR calculates the internal rate of return to measure and compare the profitability of series of investments. Brokerage & Commissions Paid Brokerages Paid for investments in Distributor Commissions Paid till date Returns (%) ^ NIL NIL # V a l u e o f I n v e s t m e n t o f ` 1 0, 0 0 # Dec 31, 2014 to Dec 31, ,473 9,852 9,497 Dec 31, 2013 to Dec 31, ,066 13,547 12,989 Dec 31, 2012 to Dec 31, ,403 10,438 10,898 Since Inception ** ,996 18,271 17, QUANTUM EQUITY FUND OF FUNDS

15 Portfolio as on December 31, 2015 Name of Instrument Quantity Market Value In Lakhs % to Net Asset MUTUAL FUND UNITS 1. SBI Magnum Multiplier Fund-Direct Plan Growth 61, HDFC Mid-Cap Opportunities Fund- Direct Plan- Growth Option 2,45, HDFC Capital Builder Fund- Direct Plan- Growth Option 45, Mirae Asset India Opportunities Fund-Direct Plan-Growth 2,83, Franklin India High Growth Companies Fund -Direct-Growth 3,13, Birla Sun Life Frontline Equity Fund - Growth - Direct Plan 56, ICICI Prudential Focused Bluechip Equity - Direct Plan-Growth 3,09, Total of Mutual Fund Units MONEY MARKET INSTRUMENTS A) Collateralised Borrowing & Lending Obligation (CBLO)* Net Receivable/(payable) Grand Total * Cash & Cash Equivalents Note: Standard Deviation, Sharpe Ratio & Beta are calculated on Annualised basis using 3 years history of monthly returns. Risk Free Rate assumed to be 7.03% (FBIL Overnight MIBOR for 31st Dec, 2015) for calculating Sharpe Ratio. ^^ Definitions Standard deviation measures historical volatility. A high standard deviation suggests high volatility, while lower standard deviation would refer to more stability. Beta is the tendency of a fund's returns to respond to market swings. A beta of 1 indicates that the fund price will move with the market. A beta of less than 1 means that thesecurity will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market. Sharpe Ratio is used to characterise how well the return of an asset compensates the investor for the risk taken. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been. QUANTUM EQUITY FUND OF FUNDS 15

16 QUANTUM DYNAMIC BOND FUND An Open-ended Debt with Defined Credit Exposure and Dynamic Maturity Profile Nature of Investment Objective Index Fund Manager Fund Manager s Total Experience Inception Date (Date of Allotment) Current Expense Ratio Features An Open-ended Debt with Defined Credit Exposure and Dynamic Maturity Profile To generate income and capital appreciation through active management of portfolio consisting of short term, long term debt and money market instruments. CRISIL Composite Bond Fund Index Mr. Murthy Nagarajan (Since May 19, 2015) 21 yrs. May 19, % Total Expense Ratio (Weighted Average for the Month) 0.50% Investment Options Minimum Application Amount ( Under each Option) Declaration of Net Asset Value (NAV) Redemption Proceeds Entry/ Sales Load Exit Load Product Labeling Name of the Quantum Dynamic Bond Fund (An Open-ended Debt with Defined Credit Exposure and Dynamic Maturity Profile) This product is suitable for investors who are seeking* Regular income over short to medium term and capital appreciation Investment in Debt / Money Market Instruments / Government Securities. * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Growth Option, Monthly Dividend Payout Option and Monthly Dividend Reinvestment Option Purchase: ` 500/- and in multiples of ` 1/- thereafter. Purchase: ` 500/- and in multiples of ` 1/- thereafter/ 50 units Every Business Day Normally despatched within 1-2 Business Days. Not Applicable Upfront commission to distributors will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor. Nil Low LOW Riskometer Moderate Moderately HIGH Investors understand that their principal will be at Moderate Risk High High Tax on Capital Gains * Resident Individuals & HUF FII s / Overseas Financial Organisations Long Term 20% with Indexation 10% without Indexation Partnership Firm 20% with Indexation Non Resident Indians 10% without Indexation (on transfer of long term capital assets being unlisted securities) Indian Companies 20% with Indexation Foreign Companies 10% without Indexation (on transfer of long term capital assets being unlisted securities) Short Term Maximum 30% 30% 30% Maximum 30% 30% 40% * The mentioned Tax Rates shall be increased by applicable surcharge, if any Education 2% and Secondary higher education 1% where ever as applicable. TRANSACTION CHARGES: In accordance with the SEBI Circular No.Cir / IMD / DF/13/2011 dated August 22, 2011, the AMC is allowed to deduct transaction charges of ` 100 for existing investors and ` 150 for a first time investor per subscription of ` 10,000 /- and above for the transaction / application received through distributors. The transaction charges shall be deducted by the AMC from the subscription amount received from the investor and paid to the distributor and the balance will be invested in the. Investors are requested to note that Quantum Mutual Fund is a direct to investor s Mutual Fund and no transaction charges shall be deducted from the investment amount for transactions / applications received from the distributor and full subscription amount will be invested in the. NAV (as of December 31, 2015) NAV per Unit Growth Option Monthly Dividend Option Fund Size as on *Average AUM (` in crores) #Absolute AUM (` in crores) Growth Option Monthly Dividend Option Total *Cumulative Daily AuM /No of days in the month #AuM as on December 31, QUANTUM DYNAMIC BOND FUND

17 Weighted Average Maturity as on December 31, 2015 (In Yrs.) At the end of the month Modified Duration 6.40 Brokerage & Commissions Paid Brokerages Paid for investments in NIL Distributor Commissions Paid till date NIL Portfolio Yield 7.73% Dividend History - Monthly Dividend payout option Record Date Net Dividend per unit (Post Dividend Distribution Tax) Individual Non Individual 26-Oct Nov Dec Portfolio as on December 31, 2015 Name of Instrument Rating Market Value In Lakhs % to Net Asset DEBT INSTRUMENTS A) Listed/awaiting listing on Stock Exchanges NIL NIL I) Government Securities % GOI (MD 19/03/2030) Sovereign 1, % GOI (MD 25/11/2023) Sovereign % GOI (MD 09/06/2020) Sovereign % GOI (MD 10/11/2033) Sovereign B) Privately Placed/Unlisted NIL NIL C) Securitized Debt Instruments NIL NIL Total of Debt Instruments 3, MONEY MARKET INSTRUMENTS A) Treasury Bills (T-Bill) Days Tbill (MD 09/06/2016) Sovereign Total of T-Bills B) Collateralised Borrowing & Lending Obligation (CBLO)* Total of Money Market Instruments Net Receivable / (Payables) Grand Total 3, * Cash & Cash Equivalents Asset Allocation (% of Net Assets) as on December 31, 2015 CBLO & Net Receivable / (Payable) 7.58% Govt. Securities 92.42% Govt. Securities CBLO & Net Receivable / (Payable) Rating Profile (% of Net Asset) as on December 31, 2015 CBLO & Net Receivable / (Payable) 7.58% Sovereign 92.42% Sovereign CBLO & Net Receivable /(Payable) QUANTUM DYNAMIC BOND FUND 17

18 Nature of Investment Objective Features An Open-ended Liquid Index Crisil Liquid Fund Index Fund Manager Mr. Murthy Nagarajan (Since November 1, 2013) Fund Manager s Total Experience 21 yrs. Inception Date (Date of Allotment) April 7, 2006 Current Expense Ratio 0.35% Total Expense Ratio (Weighted Average for the Month) 0.34% Investment Options Minimum Application Amount ( Under each Option) Declaration of Net Asset Value (NAV) Redemption Proceeds QUANTUM LIQUID FUND An Open ended Liquid The primary investment objective of the is to provide optimal returns with low to moderate levels of risk and high liquidity through judicious investments in money market and debt instruments. Growth, Daily Dividend Reinvestment & Monthly Dividend Payout. Growth Option: ` 5,000/-and in multiples of ` 1/- thereafter. Monthly Dividend Payout Option: ` 10,000/- and in multiples of ` 1/- thereafter. Daily Dividend Reinvestment Option: ` 1,00,000/- and in multiples of ` 1/- thereafter. Investment: ` 500/- and in multiples of ` 1/- thereafter /50 units (For all options) Every Business Day Normally despatched within 1-2 Business Days. Entry/ Sales Load Exit Load Product Labeling Name of the Quantum Liquid Fund (An Open- ended Liquid ) Not Applicable Upfront commission to distributors will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor. Nil This product is suitable for investors who are seeking* Income over the short term Investments in debt / money market instruments Riskometer Moderate Moderately High Low High LOW HIGH Investors understand that their principal will be at Low risk * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Tax on Capital Gains * Resident Individuals & HUF FII s / Overseas Financial Organisations Long Term 20% with Indexation 10% without Indexation Partnership Firm 20% with Indexation Non Resident Indians 10% without Indexation (on transfer of long term capital assets being unlisted securities) Indian Companies 20% with Indexation Foreign Companies 10% without Indexation (on transfer of long term capital assets being unlisted securities) Short Term Maximum 30% 30% 30% Maximum 30% 30% 40% * The mentioned Tax Rates shall be increased by applicable surcharge, if any Education 2% and Secondary higher education 1% where ever as applicable. TRANSACTION CHARGES: In accordance with the SEBI Circular No.Cir / IMD / DF/13/2011 dated August 22, 2011, the AMC is allowed to deduct transaction charges of ` 100 for existing investors and ` 150 for a first time investor per subscription of ` 10,000 /- and above for the transaction / application received through distributors. The transaction charges shall be deducted by the AMC from the subscription amount received from the investor and paid to the distributor and the balance will be invested in the. Investors are requested to note that Quantum Mutual Fund is a direct to investor s Mutual Fund and no transaction charges shall be deducted from the investment amount for transactions / applications received from the distributor and full subscription amount will be invested in the. NAV (as of December 31, 2015) NAV per Unit Growth Option Monthly Dividend Payout Option Daily Dividend Reinvestment Option Fund Size as on *Average AUM (` in crores) #Absolute AUM (` in crores) Growth Option Daily Dividend Reinvestment Option Monthly Dividend Payout Option Total *Cumulative Daily AuM /No of days in the month #AuM as on December 31, QUANTUM LIQUID FUND

19 Quantum Liquid Fund Performance as on December 31, 2015 A. Cumulative performance Date ^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option. Returns up to 1 year period are Simple Annualised Returns. Returns greater than 1 year period are compounded annualized (CAGR). # Crisil Liquid Fund Index ## Crisil 1 year T- Bill Index * Simple Annualised Yield ** shows the current value of ` 10,000/- invested at the beginning of a given period B. Discrete 12 month performance NAV per Unit Returns(%) ^ # # Dec 31, 2014 to Dec 31, ,789 10,823 10,822 Dec 31, 2013 to Dec 31, ,882 10,921 10,856 Dec 31, 2012 to Dec 31, ,876 10,903 10,586 Since Inception ** ,760 20,268 18,010 ^ Past performance may or may not be sustained in the future. Load is not taken into consideration and Returns are for Growth Option. Returns up to 1 year period are Absolute Returns. Returns greater than 1 year period are compounded annualized (CAGR). # Crisil Liquid Fund Index ## Crisil 1 year T- Bill shows the current value of ` 10,000/- invested at the beginning of a given period ** Inception Date: April 7, Since inception returns are calculated on NAV of ` 10 invested at inception. # 23-Dec-15 7 days * ,018 10,019 10, Dec days * ,032 10,034 10, Nov days * ,060 10,064 10, Dec-14 Last 1 Year * ,789 10,823 10, Dec-13 Last 2 Years ** ,741 11,821 11, Dec-12 Last 3 Years ** ,769 12,888 12,437 Returns (%) ^ # V a l u e o f I n v e s t m e n t o f ` 1 0, 0 0 Weighted Average Maturity as on December 31, 2015 (Days) At the end of the month 45 Average during the month 44 Modified Duration 35 Brokerage & Commissions Paid Brokerages Paid for investments in ` 8,300 Distributor Commissions Paid till date NIL Portfolio Yield 7.17% Dividend History - Monthly Dividend payout option Record Date Net Dividend per unit (Post Dividend Distribution Tax) Individual Non Individual 26-Oct Nov Dec QUANTUM LIQUID FUND 19

20 Portfolio as on December 31, 2015 Name of Instrument Rating Residual Maturity (in days) Market Value In Lakhs % to Net Asset DEBT INSTRUMENTS A) Listed /Awaiting listing on Stock Exchanges NIL NIL NIL B) Privately Placed/Unlisted NIL NIL NIL C) Securitized Debt Instruments NIL NIL NIL Total of Debt Instruments NIL NIL MONEY MARKET INSTRUEMENTS A) Certificate of Deposit (CD) 1. Oriental Bank of Commerce CD (MD 03/03/2016) CRISIL A Andhra Bank CD (MD 22/01/2016) CARE A Total of CDs 1, B) Commerical Papers (CP) 1. National Bank For Agri & Rural CP (MD 29/01/2016) CRISIL A Export Import Bank of India CP (MD 16/02/2016) CRISIL A Power Finance Corporation Ltd CP (MD 26/02/2016) CRISIL A Rural Electrification Corp Ltd CP (MD 01/03/2016) CRISIL A Total of CPs 3, C) Treasury Bills (T-Bill) Days Tbill (MD 10/03/2016) Sovereign Total of T-Bills D) Collateralised Borrowing & Lending Obligation (CBLO)* Total of Money Market Instruments 5, Net Receivable / (Payables) Grand Total 5, * Cash & Cash Equivalents Asset Allocation (% of Net Assets) as on December 31, 2015 CBLO & Net Receivable / (Payable) 7.34% Banks 26.23% Public Financial Institution 61.21% Public Financial Institution Banks CBLO & Net Receivable / (Payable) Govt. Securities Govt. Securities 5.22% Rating Profile (% of Net Asset) as on December 31, 2015 Sovereign 5.22% CBLO & Net Receivable / (Payable) 7.34% A % A1+ CBLO & Net Receivable / (Payable) Sovereign 20 QUANTUM LIQUID FUND