Quant MF Launches New QSIF Sector Rotation Long-Short Fund

Quant Mutual Fund has announced the launch of its latest product, the QSIF Sector Rotation Long-Short Fund. This open-ended scheme is designed to invest in equity & equity-related instruments across a maximum of four sectors, while also taking limited short positions through derivatives to capitalize on market swings.

Aimed at investors seeking long-term capital appreciation, the fund focuses on identifying high potential sectors while maintaining a disciplined approach to risk through strategic hedging. Its main idea is to maximize returns by rotating exposure among sectors showing strong growth indicators & by using short positions when specific sectors face downturns.

The fund’s benchmark is the NIFTY 500 Total Return Index (TRI). It will be jointly managed by Quant’s experienced team comprising Sandeep Tandon, Lokesh Garg, Ankit Pande, Sameer Kate and Sanjeev Sharma. The subscription and redemption frequency will be daily, offering flexibility for investors. An exit load of 1 percent will apply if units are redeemed or switched out within 15 days of allotment, while no charges will apply beyond this period.

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The minimum amount required for this mutual fund scheme investment is Rs 10 lakh, with additional investments in multiples of Re 1. For those investing through SIP, STP or SWP, the minimum amount is set at Rs 10,000 with at least six installments required, thereby catering to both institutional and high-net-worth retail investors.

The fund’s allocation strategy includes investing 80-100% in equity and equity-related instruments within up to four sectors, 0-20% in debt & money market instruments and 0-20% in Real Estate Investment Trusts (ReITs) or Infrastructure Investment Trusts (InVITs). The investment framework aims to harness cyclical and macroeconomic trends by deploying at least 80% of its net assets in focused sectoral allocations identified through advanced cycle analytics and economic modeling.

The QSIF Sector Rotation Long-Short Fund may incorporate short derivative positions of up to 25% on a sectoral basis. All stocks in a sector that is being shorted will be held as short positions to ensure disciplined execution and effective risk control. The portfolio will have 80-100% in long equity exposure, while up to 20% may be kept in cash or money market instruments for managing liquidity and making tactical adjustments.

On top of this, the fund can use derivatives beyond the 25% limit only to completely protect long positions or to adjust the portfolio. This helps the portfolio stay flexible in changing market conditions and allows it to take advantage of opportunities while effectively managing risks.

By using thorough sector analysis, active rotation, and structured hedging, Quant Mutual Fund’s new QSIF Sector Rotation Long-Short Fund aims to provide steady, risk-adjusted returns for investors in India’s changing equity market.

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