Should You Purchase This Mutual Fund Now That the Minimum Redemption Amount Is Just Rs. 1 Across All Plans?

The Quant Asset Management Company has announced a major modification to its mutual fund redemption policy in order to suit its expanding base of retail investors. With immediate effect, investors may now withdraw their money from any of its mutual fund plans for as little as Rs 1.

In the past, investors in Quant Mutual Funds had to redeem a minimum of Rs 1,000 or the account balance, whichever was lesser. With this modification, the prior policy has significantly changed, giving investors more freedom to manage their money.

Investors now have two redemption options under the new policy. They may choose to redeem a certain number of units or a certain amount, in which case the units will be sold at the net asset value (NAV) on the redemption date.

The decision by Quant Mutual Fund to amend its redemption policy was made in response to a notable rise in the proportion of retail investors in the firm, who currently make up around 30% of all transactions. Offering more accessibility and flexibility in managing their assets, the move is seen as a calculated attempt to draw in and keep ordinary investors.

The remarkable performance of Quant Mutual Fund’s flagship products in recent years has increased investor trust. For example, the Quant Small Cap Fund maintains an Asset Under Management (AUM) of Rs 17,193.09 crore and has produced exceptional results over the last three years, with a compound annual growth rate (CAGR) of 40.90%. Comparably, with an AUM of Rs 2,207.59 crore, the Quant Infrastructure Fund has generated a 3-year CAGR return of 40.48%, while with an AUM of Rs 5,421.74 crore, the Quant Mid Cap Fund has generated a 3-year CAGR of 36.32%.

A further standout performer is the Quant Flexi Cap Fund, which, as of January 31, 2024, has an AUM of Rs 3,540 crore and a steady track record. The NAV of Quant Mutual Fund is Rs 103.0873 as of February 16, 2024.

These funds’ success may be attributed to their careful portfolio management and strategic approach to investing. Prominent businesses include Reliance, Adani Power, Housing & Urban Development, Jio Financial Services, and Britannia, which are among the top holdings in these funds.

Quant Mutual Fund wants to accommodate the changing demands of its varied client base and democratize access to mutual fund investments by lowering the minimum redemption amount to Rs 1. This action is in line with the larger industry trend that encourages financial inclusion and improves investor convenience.