Mumbai: Quant Mutual Fund will quickly apply for the launch of a multi-cap fund-of-fund (FoF) which could have allocations from throughout its 26 funds, mentioned two individuals with direct information of the matter.
The fund home has accomplished its bouquet of fairness thematic funds with the launch of commodities, public sector models, and consumption funds. Now, it needs to launch a FoF, mentioned the 2 individuals who didn’t need to be recognized.
Nirav Karkera, head of analysis at Fisdom, mentioned this FoF will assist those that need to spend money on Quant MF’s portfolios however have no idea the place to speculate at particular occasions. Some themes and sectors carry out properly at completely different timings.
View Full Picture
FoFs investing in different fairness schemes are handled like debt devices for tax functions. Which means they’re taxed at a better price than fairness funds on the capital features portion. Such FoFs might be taxed on the slab price of the unitholder. Nonetheless, these investing in change traded funds (ETFs), which, in flip, make investments at the very least 90% of the corpus in equities are handled as fairness funds for tax functions. Since Quant MF schemes aren’t ETFs, they are going to be taxed at par with debt funds.
Though the tax price of FoFs is excessive, some portion might be set off by the truth that buyers don’t must get out and in of quant MF schemes to rebalance throughout schemes. Right here, the rebalancing is completed by Quant MF itself and other people can maintain on to this fund longer, mentioned Karkera of Fisdom.
It’s unclear, although, if the FoF might be permitted to spend money on schemes that aren’t run by Quant Mutual Fund.
Just lately, Quant Mutual fund filed papers for the launch of three thematic funds: Quant Consumption, Quant PSU, and Quant Commodities. The fund home manages greater than ₹36,000 crore in 23 schemes. In the identical interval final yr, it had property below administration of ₹14,000 crore. It has an SIP e-book of greater than ₹650 crore and greater than 5 million of investor folios.
Milestone Alert!
Livemint tops charts because the quickest rising information web site on the planet 🌏 Click on right here to know extra.
Associated Premium Tales
Obtain The Mint Information App to get Each day Market Updates.
Extra
Much less
Up to date: 03 Dec 2023, 10:22 PM IST
Adblock check (Why?)