Quantum Mutual Fund, India's first and only direct-to-investor fund house, will not increase its current expense ratio for the flagship product Quantum Long Term Equity Fund, an open ended equity scheme and will continue to charge 1.25% as its expense ratio, which is among the lowest in the industry.
Quantum Mutual Fund continues to strongly believe in what is one of the cornerstones of the Quantum philosophy “Offering low-cost products while maintaining transparency to our investors”. Staying true to this statement Quantum AMC will currently not increase its Total Expense Ratio (TER) for all the existing schemes. The current expense ratio for eight schemes offered by Quantum Mutual Fund is as under:-
Name of the Scheme | Expense Ratios |
Quantum Long Term Equity Fund | 1.25 % |
Quantum Tax Savings Fund | 1.25% |
Quantum Gold Fund (ETF) | 1.00% |
Quantum Index Fund (ETF) | 0.50% |
Quantum Liquid Fund | 0.45% |
Quantum Equity Fund of Fund | 0.30% |
Quantum Gold Savings Fund | 0.25% |
Quantum Multi Asset Fund | 0.25% |
Elucidating Quantum Mutual Funds views on this announcement, Jimmy A Patel, Chief Executive Officer, Quantum Asset Management Company Private Limited said, “We welcome the recent move by SEBI that encourages the mutual fund industry to improve its geographical reach to increase retail participation. We offer low cost products and have capped the current expense ratio of our flagship product Quantum Long Term Equity Fund at 1.25% (one of the lowest in the industry) and offer a complete paperless invest online platform on www.QuantumMF.com, the only one of its kind in the country .”
The change of regulations notified by SEBI on 13 September 2012 (SEBI circular CIR/IMD/DF/21/2012 ) and SEBI Notification dated 26 September 2012 to SEBI (Mutual Funds) (Second Amendment) Regulations, 2012, with effect from 1 October 2012 and their effect on the investors in Quantum Mutual Fund is summarized in the table below:
The changes suggested by SEBI are | Impact on Quantum Investors |
To charge additional expense ratio up to 30 bps on daily net asset of the scheme, if the net inflows are received from locations beyond top 15 cities (subject to certain conditions) | No increase in expense ratios |
To charge additional expense ratio up to 20 bps towards different sub-heads mentioned under sub-regulations 52 | No increase in expense ratios |
An additional 12.36% of Investment Fees (Service Tax) that would now be borne by the investor | No increase in expense ratios |