What are the investment opportunities in India?

1
India Investment Opportunities
Speakers Mr. Sandeep Bhosle, AVP Customer
Interaction Mr. Arvind Chari CIO, Quantum
Advisors May, 2021
2
Criteria to Select a Good Fund House

• What is the background?
• What is the experience?

PEOPLE

• Is there a clearly defined investment philosophy
  across all market situations or is this a
  ride-the-wave, bull-market manager?

PHILOSOPHY

• What is the research and investment process and
  how reliable is it?

PROCESS

• Given the process, is the performance as
• predictable as it should be?

PERFORMANCE
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About Quantum Mutual Fund
3

• Quantum Mutual fund was established in 2006 with
  the launch of the Quantum Long Term Equity Value
  Fund
• Quantum Mutual Fund was the 29th, but Indias 1st
  Fund house that started with a focus on a Low
  Cost Approach for investors
• Simple range of funds No confusion for investors
• Disciplined Research and Investment Process
  Team-driven, no star fund managers
• Staying the course, no short cuts Asset
  Managers, not Asset Gatherers
• Quantum MF AUM Rs.1,914.71 Cr. as on 30th April
  2021
• Number of Folios 71,906 as on 30th April 2021

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Look Out For.
4
Event When Impact trend Remarks
Budget February LT policies matter more than annual targets
Monsoon June Sept Need for a healthy water table
Pakistan Winter sport A waste of time for both countries
Local Politics The curse? A global problem
China Recent Needs capital and materials
US Fed Recent The Risk on and Risk- off behaviour
120 m youth Recent If no jobs then big trouble
5
Myth 1- India will grow 8 P.A
If the world slips sideways, India will grow...as
it has over the past 39 year We believe 6.5 Real
GDP growth is a realistic long term assumption
Source RBI and www.parliamentofindia.nic.in as
of Dec 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
May.
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India will be a Large Part of The Global Economy
You Cannot Ignore It
Source Quantum, Angus Maddison, University of
Groningen
7
Indias Continued Reforms will Make India the
Next China
World India China India average 6.1 China
average 9.2
14.0
12.3
11.6
12.0
9.9
9.6
9.5
10.0
8.8
8.7
8.5


7.8


8.0
7.1
7.1
6.7
6.5
6.1

5.9
5.8
6.0
5.4
5.3
5.2


4.9




4.0
3.9

3.7
3.5
4.0
3.4
3.3
3.2
2.9
2.3
2.2
2.0
0.0
Jan 80 - Oct Nov 84 - Dec Jan 90 - Jun 91 July 91
- May 84 Congress 89 Congress Janata Dal 96
Congress
Jun 96 - Mar 98 DF
Apr 98 - Apr 99 BJP
Jun 99 - May Jun 04 - May Jun 09 - May 04
NDA 09 UPA 14 UPA
Jun 14 - Dec 20 NDA
Real GDP Growth Source Worldbank, RBI and
www.parliamentofindia.nic.in as of December 2020.
Please note that data used for World GDP for 2020
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.
8
Based on Historical Data A simple Equity Market
Return Assumption
Indian Equity Market Return Assumptions Expectations Indian Equity Market Return Assumptions Expectations
GDP Growth, real 6.5
Inflation 5.0
GDP Growth, nominal 11.5
If GDP Growth Revenue Growth (Revenues of Typical Companies) 11.5
Profit Growth of Typical Companies 11.5
Companies, listed and in an Index gt Typical Company 13.5
In Long-term Equity Return should Reflect Corporate Earnings In Long-term Equity Return should Reflect Corporate Earnings
Past performance may or may not be sustained in
future. Source RBI, CMIE, Quantum Estimates
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Questions in Investors Mind
What will be the impact of Resurgence of
Covid-19? India in a global context Will Value
Style Perform ? Large Caps or Mid/Small Caps,
where to invest? Why is diversification
Important?
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Covid-19 Second Wave or Tsunami
2,000,000
Daily Tests February 2021 to April 2021
450,000
Daily Cases
1,800,000
400,000
February 2021 to April 2021
1,600,000
350,000
March 2020 to December 2020
March 2020 to December 2020
1,400,000
300,000
1,200,000
250,000
1,000,000
200,000
800,000
150,000
600,000
100,000
400,000
50,000
200,000
0
0
Days
1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 1
51 161 171 181 191 201 211 221 231 241 251 261 271
281 291
1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 1
51 161 171 181 191 201 211 221 231 241 251 261 271
281 291
4000
30
Daily Deaths
Test Positivity
3500
25
February 2021 to April 2021
February 2021 to April 2021
3000
20
March 2020 to December 2020
2500
March 2020 to December 2020
2000
15
1500
10
1000
5
500
0 Days
0
1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 1
51 161 171 181 191 201 211 221 231 241 251 261 271
281 291
1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 1
51 161 171 181 191 201 211 221 231 241 251 261 271
281 291
Days
Source John Hopkins University
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Covid-19 Lockdown déjà vu This Time is
Different How is Corporate India Placed ?
The lockdowns are lesser stringent and more
localized this time Corporate Balance-Sheet are
better. The focus has been on debt reduction and
liquidity Last one year has been all about cost
control and business continuity Pvt. Banks
NBFCs have raised capital and are best
capitalized in last 10 years As Global Recovery
is intact, export companies and commodity
producers are comfortably placed
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Smaller Companies are Losing Market Share
Sales Growth
Fixed Assets
30
30
20
20
10
10
0
-10
0
-20
-10
-30
-20
-40
-50
-30
-60
-40
Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13
Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16
Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19
Dec-19 Jun-20 Dec-20
Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13
Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16
Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19
Sep-19 Mar-20 Sep-20
Top 3 Deciles
Bottom 3 Deciles
Top 3 Deciles
Bottom 3 Deciles
CMIE- Economic Outlook, Data as on December 2020
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Business Strength of Larger Companies Reflect in
Equity Returns Over Long Term
Past performance may or may not sustained in
future
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What is ESG all about?
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What is ESG Investing?
Replacing the question how much return? with
how much sustainable return?
Generic term given to non financial factors that
can have a material impact on firm valuation
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Quantums ESG Approach
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• Our analysis is guided by the materiality of the
  issues
• Governance sits at the heart of our analysis
• Typically focus on areas such as capital
  allocation, board composition, quality of
  disclosures and treatment of minority
  shareholders
• Shortcomings go hand in hand with poor
  performance on the social and environmental
  fronts, making it a good proxy for wider problems
• Identify companies that can act as long term
  stewards of capital

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Investing with Values

• Clean and Environmental friendly businesses
• Businesses contributing towards the society
• Businesses having a fair and transparent
  practices
• Businesses that are responsible
• Businesses where sustainability drives long term
  performance

Make Quantum India ESG Equity Fund a core part of
your portfolio!!!
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Performance of Quantum India ESG Equity Fund -
Direct Plan
The Scheme is managed by Mr. Chirag Mehta and Ms.
Sneha Joshi. Mr. Chirag Mehta is the Fund Manager
effective from July 12, 2019. Ms. Sneha Joshi is
the Associate Fund Manager effective from July
12, 2019
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 () NIFTY 100 ESG TRI () SP BSE Sensex TRI () Scheme (Rs) NIFTY 100 ESG TRI (Rs) SP BSE Sensex TRI (Rs)
1 Year 61.20 54.08 46.26 16,120 15,408 14,626
Since Inception (12th July 2019) 23.04 19.85 14.81 14,540 13,867 12,832
Past performance may or may not be sustained in
the future. Data as of 30th April, 2021 Load is
not taken into consideration in scheme returns
calculation Different Plans shall have different
expense structure. The Schemes has been in
existence for more than 1 year but has not yet
completed 3 and 5 years period. Returns are net
of total expenses and calculated on the basis of
Compounded Annualized Growth Rate(CAGR). For
performance of other Schemes Managed by Mr.
Chirag Mehta please see slide number 23, 24
25 Mr. Chirag Mehta manages 5 schemes of Quantum
Mutual Fund.
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2021- A Simple Asset Allocation Strategy to Deal
with Market Cycles
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Why is Diversification Important?
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Ignore Asset Allocation at your own Peril
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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
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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 Sensex 2
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 0.3
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 Gold -5
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 April 2021 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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Performance of Quantum Liquid Fund Direct Plan
Growth Option
Mr. Pankaj Pathak is the Fund Manager effective
from March 01, 2017
Current Value Rs 10,000 Invested at the beginning of a given period Current Value Rs 10,000 Invested at the beginning of a given period Current Value Rs 10,000 Invested at the beginning of a given period
Benchmark Additional Benchmark Benchmark Additional Benchmark
Period Scheme Returns () Crisil Liquid Fund Index Returns () Crisil 1 year T-bill Index Returns () Scheme (Rs.) Crisil Liquid Fund Index (Rs.) Crisil 1 year T-bill Index (Rs.)
7 Days 2.98 3.47 3.31 10,006 10,007 10,006
15 Days 3.09 3.55 3.23 10,013 10,015 10,013
1 Month 3.04 3.61 4.28 10,025 10,030 10,035
1 year 3.12 3.95 3.73 10,312 10,395 10,373
3 years 5.08 5.93 6.46 11,604 11,889 12,069
5 years 5.55 6.34 6.43 13,103 13,603 13,660
7 years 6.26 6.94 6.96 15,299 15,998 16,027
10 years 7.07 7.48 6.97 19,812 20,580 19,624
Since Inception (07th April 2006) 7.03 7.14 6.32 27,856 28,274 25,197
Past performance may or may not be sustained in
the future. Different Plans shall have a
different expense structure. Data as of 30th
April 2021 Simple Annualized . Pankaj Pathak
also manages Quantum Dynamic Bond Fund. Please
refer slide no. 27 to review performance of
Quantum Dynamic Bond Fund. Returns for 1 year
and above period are calculated on the basis of
Compounded Annualized Growth Rate (CAGR).
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Performance of Quantum Multi Asset Fund of Funds
Direct Plan Growth Option
The Scheme is co-managed by Mr. Chirag Mehta and
Mr. Nilesh Shetty since July 11, 2012.
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 Scheme Returns () Benchmark Returns () SP BSE Sensex TRI Returns () Scheme (Rs) Benchmark (Rs) SP BSE Sensex TRI (Rs.)
1 year 16.00 20.01 46.26 11,600 12,001 14,626
3 years 8.55 11.49 12.85 12,795 13,863 14,377
5 years 9.21 11.22 15.15 15,544 17,026 20,260
7 years 9.26 10.54 13.23 18,596 20,175 23,874
Since Inception (11th July 2012) 9.50 10.42 13.84 22,254 23,944 31,329
Past performance may or may not be sustained in
the future. Load is not taken into consideration
in scheme returns calculation. Data as of 30th
April 2021 Different Plans shall have different
expense structure. Returns are calculated on the
basis of Compounded Annualized Growth Rate
(CAGR). Benchmark has been changed from Crisil
Composite Bond Fund Index (40) SP BSE SENSEX
Total Return Index (40) Domestic price of gold
(20) to CRISIL Composite Bond Fund Index (20)
SP BSE Total Return Index (40) CRISIL
Liquid Index (25) Domestic Price of Gold (15)
with effective from April 01, 2021. It is a
customized index and it is rebalanced daily. For
performance of other Schemes Managed by Mr.
Chirag Mehta please see slide number 18,24 25,
For performance of other Schemes Managed by Mr.
Nilesh Shetty please see slide number 26.
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Performance of Quantum Equity Fund of Funds
Direct Plan Growth Option
The Scheme is managed by Mr. Chirag Mehta
effective from November 1, 2013.
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 47.42 53.92 46.26 14,742 15,392 14,626
3 years 8.30 11.46 12.85 12,707 13,851 14,377
5 years 12.83 15.09 15.15 18,300 20,209 20,260
7 years 14.65 14.43 13.23 26,052 25,710 23,874
10 years 12.09 11.84 11.35 31,352 30,659 29,328
Since Inception (20th July 2009) 13.59 12.47 11.92 44,930 39,966 37,709
Past performance may or may not be sustained in
the future. Load is not taken into consideration
in scheme returns calculation. Data as of 30th
April 2021.Different Plans shall have different
expense structure. Returns are net of Total
Expenses and calculated on the basis of
Compounded Annualized Growth Rate (CAGR). For
performance of other Schemes Managed by Mr.
Chirag Mehta please see slide number 18,23 25
25
Other Schemes managed by Mr. Chirag Mehta
Quantum Gold Fund Mr. Chirag Mehta is managing
the scheme effective from May 1, 2009. Ms. Ghazal
Jain is co-managing the scheme effective from
June 2, 2020
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 Gold Fund (Gr) -1.17 -0.37 13.37 14.44 7.89 8.94
Past performance may or may not be sustained in
the future. Domestic Price of Gold. Data as of
30th April 2021 Returns are net of total
expenses and are calculated on the basis of
Compounded Annualized Growth Rate (CAGR). Mr.
Chirag Mehta manages 5 Schemes and Ms. Ghazal
Jain manages 2 Schemes of the Quantum Mutual
Fund. The Scheme being Exchange Traded Fund has
one plan to invest through stock exchange and
having a single expense structure Quantum Gold
Savings Fund Mr. Chirag Mehta is managing the
scheme effective from May 19, 2011. Ms. Ghazal
Jain is co-managing the scheme effective from
June 2, 2020
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 Gold Savings Fund Direct Plan (Gr) -3.38 -0.37 13.17 14.44 8.19 8.94
Quantum Gold Savings Fund Regular Plan (Gr) -3.46 -0.37 13.05 14.44 NA NA
Past performance may or may not be sustained in
the future. Domestic Price of Gold. Data as of
30th April 2021 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.
Chirag Mehta manages 5 Schemes and Ms. Ghazal
Jain manages 2 Schemes of the Quantum Mutual Fund.
26
Other Schemes managed by Mr. Nilesh Shetty
Quantum Long Term Equity Value Fund Mr. Sorbh
Gupta effective from December 1, 2020.Co-managing
with Mr. Nilesh Shetty 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) 57.24 53.92 7.82 11.46 11.17 15.09
Quantum Long Term Equity Value FundRegular Plan (Gr) 56.46 53.92 7.39 11.46 NA NA
Past performance may or may not be sustained in
the future. Load is not taken into consideration
in Scheme Return Calculation. Data as of 30th
April,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.
27
Other Schemes managed by Mr. Pankaj Pathak
Quantum Dynamic Bond Fund Mr. Chirag Mehta
effective from July 12, 2019.Co-managing with Ms.
Sneha Joshi effective from July 12, 2019
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 Dynamic Bond Fund Direct Plan (Gr) 5.82 7.69 8.21 8.97 8.56 8.61
Quantum Dynamic Bond Fund Regular Plan (Gr) 5.69 7.69 8.08 8.97 NA NA
Past performance may or may not be sustained in
the future. Data as on 31th April 2021 Different
Plans shall have a different expense structure.
Returns are net of total expenses and are
calculated on the basis of Compounded Annualized
Growth Rate (CAGR). Pankaj Pathak also manages
Quantum Liquid Fund. Benchmark CRISIL Composite
Bond Fund Index.
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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. 21st May 2021 Mutual fund
investments are subject to market risks, read all
scheme related documents carefully.
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