Quant Small Cap Fund is an equity mutual fund that primarily invests in small-cap companies, aiming to provide long-term capital appreciation. Launched on January 1, 2013, the fund has established itself over the past 12 years. As of December 31, 2024, it manages assets worth ₹25,183 crores, categorizing it as a medium-sized fund in its segment. The fund carries a high-risk level, typical of small-cap investments.
Performance Metrics
Over the past five years, Quant Small Cap Fund has delivered impressive returns:
- 1-Year Return: -8.09%
- 3-Year CAGR: 21.20%
- 5-Year CAGR: 38.09%
These figures indicate significant growth over the long term, despite short-term volatility.
Expense Ratio & Exit Load
The fund’s expense ratio is 0.68%, aligning with the average for small-cap funds. Investors should note an exit load of 1% if units are redeemed within one year of investment.
Top Holdings & Sector Allocation
As of January 2025, the fund’s top sector allocations are:
- Services: 17.59%
- Healthcare: 16.35%
- Energy: 15.13%
- Financial: 13.92%
- Construction: 6.14%
The top company holdings include:
- Reliance Industries: 9.63%
- JIO Financial: 6.71%
- Aditya Birla Fashion and Retail: 4.13%
- HFCL: 4.11%
- Bikaji Foods International: 3.89%
This diversified allocation across sectors and companies helps mitigate risks associated with small-cap investments.
Fund Manager Details
The fund is managed by Ms. Shweta Verma, who has been with Quant Mutual Fund as a Research Analyst for the past 15 months, specializing in investment research. She holds a BSc (Hons) in Economics and an MSc in Behavioural & Experimental Economics.
Investment Strategy
Quant Small Cap Fund follows a style-agnostic approach, selecting businesses based on Quant’s proprietary VLRT (Velocity, Liquidity, Risk, and Time) model. This model aims to identify opportunities across various market conditions, balancing growth and value investment styles.
NAV & Investment Options
As of February 25, 2025, the latest Net Asset Value (NAV) of the fund is ₹240.12. The minimum investment required for a Systematic Investment Plan (SIP) is ₹1,000, while a lump-sum investment requires a minimum of ₹5,000.
Why Choose Quant Small Cap Fund?
The fund has demonstrated strong long-term performance, with a 5-year CAGR of 38.09%, outperforming many peers. Its diversified portfolio across various sectors and a disciplined investment strategy make it an attractive option for investors seeking high growth potential in the small-cap segment.
Why Not to Choose Quant Small Cap Fund?
Investing in small-cap funds comes with high volatility and risk. The fund has experienced short-term underperformance, with a 1-year return of -8.09%. Investors should be prepared for significant fluctuations and have a long-term investment horizon to mitigate these risks.
Performance of Companies in the Fund
The top holdings have shown varied performance:
- Reliance Industries: P/E ratio of 23.55; 1-year return of -19.05%
- HFCL: P/E ratio of 33.72; 1-year return of -25.08%
- Poly Medicure: P/E ratio of 70.15; 1-year return of 39.35%
These figures reflect the inherent volatility in small-cap investments, underscoring the importance of a long-term perspective.
In conclusion, Quant Small Cap Fund offers substantial growth potential for investors willing to accept higher risk and maintain a long-term investment horizon. Its diversified portfolio and robust investment strategy make it a noteworthy consideration in the small-cap category.