ELSS Could be Your Chance To Save Tax & Create Wealth

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ELSS Could be Your Chance To Save Tax Create
Wealth
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Overview Indian Economy
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Budget 2021-22 Full throttle Fiscal expansion
to GDP 2019-20 Actuals 2020-21 Revised Estimates 2021-22Budgeted
Fiscal Deficit 4.59 9.49 6.76
Capital Expenditure 1.65 2.25 2.49
Revenue Expenditure 11.65 15.46 13.14

• The govt. has set itself a fiscal deficit target
  of 6.8 in FY22
• Immediate concern was the vaccine and the health
  infrastructure. That has been addressed with
  Healthcare and Sanitation spend increasing by
  136 on a y-o-y basis
• There have been some sector specific changes like
  increase in FDI limit in Insurance to 74 from
  49 scrappage policy for Autos, which augurs
  well for respective sectors  
• On rural, there havent been any major changes in
  the allocations apart from minor enhancements in
  certain schemes
• Government has set an ambitious divestment target
  of Rs 1,750 bn, which includes planned IPO of LIC
  and privatization of certain public sector
  financial institutions
• Higher borrowings (even after adjusting for
  reclassification of borrowings of Food
  Corporation of India) by the government can crowd
  out the private sector demand for loans, until
  unless, foreign flows in debts come to their
  rescue

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Down, Down Downbut Glimmers Of Hope With Newest
Reading Showcasing Indian Economys Resilience
Source Bloomberg, as of September 30, 2020.
Note The numbers in red circle are from a
changed data series starting Jan 2015. While a
superior series, there is no comparable number
to equate the New with the Old. Most
economists deduct 0 to 1.5 from the New to
equate to the Old. Or you need to add 0 to
1.5 to equate the old to the New.
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Economic Activity vs pre-COVID levels
Source CMIE, Bloomberg, QAMC Research
Economic activity in some sectors at 90 and in
some sectors above pre-COVID levels
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Indians Still Consuming The Hungry Consumers!
Year (March end) 2-wheelers (Domestic sales Mn units) Passenger Vehicles (Domestic sales Mn units) Refrigerators (Production Mn units) Cement (mn tn) Home loans outstanding (Rs. bn)
2008 8,064,903 225 1.55 6.14 174
2009 8,439,786 392 1.55 6.72 187
2010 10,511,009 584 1.95 8.00 207
2011 13,302,335 812 2.50 8.72 216
2012 15,384,261 919 2.63 9.91 230
2013 15,753,563 868 2.67 11.12 248
2014 16,890,778 905 2.50 10.65 256
2015 18,433,027 970 2.60 11.95 270
2016 18,938,727 1,034 2.79 11.86 283
2017 19,929,958 1,170 3.05 13.05 280
2018 23,007,691 1,183 3.29 13.50 298
2019 24,460,688 1,162 3.38 15.64 337
2020 20,936,201 1,158 2.73 15.0 334
2021 YTD 11,442,365 1,152 1.41 4.0 149
CAGR (2008 to 2020) 10.0 17.8 5.8 9.3 6.7
2021 YTD data, Two-wheeler sales data as on
Nov20, Passenger Vehicle sales Data as on
November 2020 Refrigerator data as on October
2020, Cement sales data as on November' 20,
Housing loans data as on November 2020, Latest
cell phone connections data as on Oct '20
Source 2 wheeler passenger vehicle and Cement
CMIE database refrigerator production data
CMIE (IIP ) database, home loans outstanding
RBI Data on Sectoral deployment of bank credit
(September 2020). Annualized Returns.
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If The World Slips Sideways, India Will Grow As
It Has Over The Past 39 Years
Real GDP growth rate across 10 governments has
been 6.3 p.a. over the last 39 years
Source RBI and www.parliamentofindia.nic.in as
of September 2020. Note The number in red
rectangle is from a changed data series starting
Jan 2015. While a superior series, there is no
comparable number to equate the New with the
Old. Most economists deduct 0 to 1.5 from the
New to equate to the Old therefore under
Modi, the GDP has been at 5.9 at best matching
the 5.6 under the BJP-led coalition government
of Vajpayee that resulted in a rout for the BJP
at the time of the next election in 2004! Please
note that data used for World GDP for 2017 is a
median Estimate since World Bank data is not yet
available and India GDP data is governments
second advance estimate released at the end of
September.
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Covid 19 No Resurgence After First Wave,
Vaccination Drive Starts
  April 30 2020 June 30 2020 Sep 30 2020 Dec 31 2020
Daily Tests 72,453 217,931 1,426,052 1,127,244
Daily new infections 1,901 18,522 80,472 21,822
Cumulative Cases 33,610 566,840 6,225,763 10,266,674
Of which -Recovered 24,162 334,822 5,187,825 9,860,280
Deaths- Cumulative 1,075 16,893 97,497 148,738

• There are no signs of a second wave
• Government has approved Oxford-AstraZeneca
  (manufactured by Serum Institute India) Bharat
  Biotechs (Local player) Vaccines for India
• Vaccination started from Jan 16, 2021
• Government plans to vaccinate 300 mln people by
  August 2021

Source John Hopkins University
Daily new infections have shown a sharp
deceleration, so far there are no signs of a
second wave
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Risk to the Recovery

• Emergence of a Second Wave of Covid Cases could
  derail economic recovery
• Job Losses amongst salaried employees and Rising
  Inflation may impact consumer discretionary spend
• Real stress in the Banking sector has yet to be
  revealed as recognition of bad loans has been
  deferred after a Supreme court order
• With fiscal policy in the expansion mode,
  inflation is the real worry. The risk of higher
  interest rates has increased

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Overview Indian Stock Markets
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Spiking PER Overstates Valuation Given The Prior
Quarters Gap Down
Source Bloomberg. Data as on January 31st 2021.
Past Performance may or may not sustained in
future.
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Indian Corporates Have Showcased Strong
Flexibility on Costs
  Q1 FY21 Q2FY21 Q3FY21
Revenue 35 56 54
EBIDTA 48 64 66
PAT 55 70 68
Source Q Research, Citigroup Based on results
which have come by 31st January 2021
Percentage of companies positively surprising
sell side expectations in quarters most impacted
by pandemic
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Estimates Have Adjusted for COVID Still
Optimistic?
Data as of January 2021 Source Bloomberg
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Quantum Tax Saving Fund
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What to look for in an ELSS Scheme?

• Stability of the Investment team Consistency in
  Style
• Long term track record across Market Cycle
• Prefer a fund with lower turnover ratio (lower
  churn) so as to reflect alignment of Fund
  Managers approach and your investment horizon
• Portfolio should have good quality companies
  across Large Caps Mid Caps depending upon where
  value lies

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Quantum Tax Saving Fund ELSS Scheme following
Value Strategy

• Quantum Tax Saving Fund Invests in Quality Midcap
  Large Cap companies with a minimum stock
  liquidity filter creates a portfolio for long
  term capital appreciation. Portfolio is similar
  to QLTEVF
• The fund has a three year lock-in which is one of
  the lowest amongst other tax saving instruments
• A three year lock-in ensures an enforced
  discipline amongst the investor. Equity is an
  investment class only in the long term in the
  near term its speculative
• Being an ELSS scheme it comes with an advantage
  of building wealth and saving taxes
• Well suited for long term goals such as children
  education retirement planning

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Our Investment Criteria Value

• Evaluate
• The Business of the company
• The environment in which it operates
• The management and their long-term goals
• Can the financials support the long-term goals?
• Analyze
• The stock price of the company based on
  fundamentals relative to its peer group, its
  history, and the market
• PER, PCF, P/BV, Div Yld, EV/EBITDA
• Buy
• Current price is generally 40 lower than our
  estimate of long-term value (in case of first
  time buy)
• Sell
• Current price is gt our estimate of long-term
  value
• Better Investment Alternatives
• Changed view of management, Changed view of
  business

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Our Macro-Assumptions The 4 Inputs To Our
Bottom-up Stock Selection Process
Our estimate Consensus Current readings Comments
GDP, long-term 5.5 to 6.0 (Old Series) 6.5 -7.5 New series remains confusing policy makers will grapple with GDP data
Inflation 4.0 to 4.5 4.5 to 5.0 4.6 Inflation above  RBI comfort level.  It should trend down 4.5-5.0  in the long term
10-year bond Long term 6.5 to 7.0 6.0-6.5 6.1 Inflation remain the key risk for further rate cuts
FX rates /-2 (INR /USD in a 75-80 band) /- 5 INR/USD73 lower oil prices are positive. Sudden withdrawal of portfolio flows remain key risk
Source Quantum AMC estimates, as of January 2021
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Bottom-Up Stock Selection Process
Clients get best of bottom up ideas with a risk
control measurement for each sector
25 to 40 stocks
Portfolio of stocks with broad exposure to
various sectors. Reflecting three broad themes
domestic consumption, exports and infrastructure
201 stocks
Regular meeting to review ideas and approve value
stocks for the database
Analysts study stocks in their sector- in India
and globally
Number of stocks mentioned are as per current
average trading volume value criteria. The number
of Stock in trading volume criteria, and in
portfolio will be changed from time to time based
on Investment Strategy of the scheme.
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Portfolio Construction
No
To research team
YES
No effect on decision
No
Wait
YES

• Weights assigned to a stock
• are a function of
• Reliability of management
• Quality of earnings
• Stability of earnings
• Upside Potential
• Alternatives/Cash

Indifferent guided by Research
Investment Rules
Our portfolio turnover is typically 20,
suggesting a 5 year holding period. Please refer
Scheme Information Document of the Scheme for
complete Investment Strategy
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Portfolio Positioning

• Portfolio allocation towards cement, steel,
  power capital goods utilities will benefit
  from a capex driven recovery cycle as envisaged
  by the Budget
• Monsoon has been good for second consecutive
  year. Some of the portfolio stocks are well
  positioned to benefit from strong agri rural
  economy
• High quality stocks available at reasonable
  valuations were added to the portfolio in the
  correction in February March 2020
• Portfolio stocks look comfortable after stress
  test - have strong balance-sheet or strong
  parentage to last the downturn
• Existing cash holding will be used to add new
  names in case of correction

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Performance Across the Market Cycles (Mar 2006
Jan 2021 Quantum Tax Saving Fund Direct Plan
Growth Option)
Past performance may or may not be sustained in
future. This graph should be reviewed in
conjunction with detailed performance of the
scheme provided on slide number 25 Source
Bloomberg
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There have been years when equity markets had a
brilliant run, years when only bonds were
dependable, and years when gold shined the
brightest, and these periods did not typically
overlap
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Ignore Asset Allocation at your own Peril
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Sensex 49 Sensex 49 Gold 26 Sensex 83 Gold 23 Gold 32 Sensex 28 Sensex 11 Sensex 32 Bonds 9 Bonds 13 Sensex 30 Gold 8 Gold 16 Gold 28
Gold 20 Gold 16 Bonds 9 Gold 24 Sensex 19 Bonds 7 Gold 12 Bonds 4 Bonds 14 Sensex -4 Gold 11 Gold 5 Sensex 7 Sensex 14 Bonds 17
Bonds 4 Bonds 7 Sensex -52 Bonds 4 Bonds 5 Sensex -24 Bonds 9 Gold -5 Gold -8 Gold -7 Sensex 3 Bonds 5 Bonds 6 Bonds 11 Sensex 12
Past performance may or may not sustained in
future The chart ranks the best to worst
performing indexes per calendar year from top to
bottom Data as of December 2020 Past performance
may or may not be sustained in future. Based on
SP BSE Sensex Domestic Gold prices and CRISIL
Composite Bond Fund Index Source Bloomberg
Imagine someone holding an all equity portfolio
in 2008, or holding none in the equity rally that
followed?
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2021- A Simple Asset Allocation Strategy to Deal
with Market Cycles
Keep 6-24 months of expenses in Liquid Fund, Bank
Fixed Deposit so that It can be withdrawn
immediately
Please note that the above is the suggested fund
allocation only and is not to be considered as
investment advice / recommendation, please seek
independent professional advice and arrive at an
informed investment decision before making any
investments.
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Performance of Quantum Tax Saving Fund Direct
Plan Growth Option The Scheme is Managed by Mr.
Sorbh Gupta since October 1, 2016.
Period   Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period
Period   Benchmark Additional Benchmark Benchmark Additional Benchmark
Period   Scheme Returns () SP BSE 200 TRI () SP BSE Sensex TRI () Scheme (Rs) SP BSE 200 TRI (Rs) SP BSE Sensex TRI (Rs)
1 year 16.54 16.51 15.09 11,650 11,646 11,505
3 years 3.61 7.75 10.08 11,121 12,506 13,336
5 years 10.64 14.11 14.65 16,587 19,360 19,826
7 years 13.00 14.73 13.81 23,532 26,168 24,736
10 years 10.89 11.35 11.24 28,121 29,301 29,035
Since Inception (23rd Dec 2008) 16.12 15.83 15.36 61,090 59,300 56,444
Past performance may or may not be sustained in
the future. Data as 31st January 2021 Load is not
taken into consideration in scheme returns
calculation. Returns are net of Total Expenses
and calculated on the basis of Compounded
Annualized Growth Rate (CAGR) with effect from
February 01, 2020 benchmark has been changed from
SP Sensex TRI to SP BSE 200 TRI Mr. Sorbh Gupta
manages 2 schemes of Quantum Mutual Fund. For
performance of other Schemes Managed by Mr. Sorbh
Gupta please see slide number 26.
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Other Schemes managed by Mr. Sorbh Gupta
Quantum Long Term Equity Value Fund Mr. Sorbh
Gupta is co -managing the scheme effective from
December 1, 2020. Mr. Nilesh Shetty is
co-managing the scheme effective from March 28,
2011.
Period 1 year 1 year 3 years 3 years 5 years 5 years
  Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns ()
Quantum Long Term Equity Value FundDirect Plan (Gr) 16.20 16.51 3.64 7.75 10.50 14.11
Past performance may or may not be sustained in
the future. Load is not taken into consideration
in Scheme Return Calculation. Data as of 31st
January, 2021 BSE 200 TRI. Returns are net of
total expenses and are calculated on the basis of
Compounded Annualized Growth Rate (CAGR).
Different Plans shall have different expense
structure. Mr. Sorbh Gupta Mr. Nilesh Shetty
manages 2 schemes of Quantum Mutual Fund.
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Product Label
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Product Label
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Product Label
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Disclaimer Terms of Use
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. Quantum AMC shall make
modifications and alterations to the performance
and related data from time to time as may be
required as per SEBI Mutual Fund Regulations.
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. The Quantum AMC shall make
modifications and alterations to the performance
and related data from time to time as may be
required. Please visit www.QuantumMF.com to
read scheme specific risk factors. Investors in
the Scheme 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 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. Statutory Details Quantum Mutual
Fund (the Fund) has been constituted as a Trust
under the Indian Trusts Act, 1882. 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, 1956. 5th February 2021 Mutual
fund investments are subject to market risks,
read all scheme related documents carefully.
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Thank You
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Solutions to meet Sustainable Development Goals
SGD-17

SMILE
WHAT IS SMILE?
THE SMILE STORY
OUTCOME SO FAR
SMILE was born out of our desire to support
credible NGOs and create a steady stream of money
flow for them
Since 2018, Quantum MF investors have supported 7
NGOs from diverse sectors via the SMILE facility
SMILE enables Quantum MF investors to contribute
10 of their investment in eligible schemes to
charities vetted by HelpYourNGO
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SMILE Process Flow
10 OF THE SMILE CORPUS
DONATION RECEIPTS
INVEST IN SMILE UNITS
Q Long Term Equity Value Fund Q Equity Fund of
Funds Q Dynamic Bond Q Multi Asset Q Gold
Savings Q Liquid
HelpYourNGO sends donation receipts and
80G Liaises with NGO grantees Monitors reviews
Donated to NGOs selected by investors and vetted
by HelpYourNGO
Investors receive periodic program reports from
HYNGO on the NGOs supported by them
Investors receive periodic program reports from
HelpYourNGO on the NGOs supported by them