Quant Mutual Fund files draft papers for qsif Sector Rotation Long-Short Fund: Key details

Quant Mutual Fund has filed draft documents with the Securities and Exchange Board of India (SEBI) for its new specialised investment scheme, the QSIF Sector Rotation Long-Short Fund.

The proposed fund is an open-ended scheme that will invest in equity and equity-related instruments, with limited short positions through derivatives, across a maximum of four sectors.

Given its concentrated exposure, the scheme carries high sector and market risks. The draft papers were filed on October 30, and the NFO launch date will be announced once SEBI grants its approval.

qsif Sector Rotation Long-Short Fund: Key details of the scheme

• Equity and equity-related instruments: 80-100%
• Debt and money market instruments: 0-20%
• REITs and InvITs: 0-20%
• Minimum 90% exposure in any four of the 12 defined sectors

• Sandeep Tandon: Founder and CIO, Quant Group, 33+ years of experience
• Lokesh Garg: Former UBS and Credit Suisse executive, 20 years of experience
• Ankit Pande: CFA, BE (Electronics), MBA; experience since 2011
• Sameer Kate: MBA, ex-Investec and Kotak; 20+ years of experience
• Sanjeev Sharma: PGDBA, treasury and derivatives specialist; 20+ years of experience

The minimum amount to invest on a continuous basis (SIP, SWP and STP), and the minimum additional purchase amount, is ₹10,000 and in multiples of ₹1 thereafter. For SIP, SWP and STP facilities, a minimum of 6 installments would be required.

• NFO price: ₹10 per unit
• Minimum redemption amount: ₹1,000 and in multiples of ₹1 thereafter.
• NFO duration 3-15 days
• Plans and options: The fund offers Direct and Regular plans and has Growth and IDCW options. The default plan is growth.
• The maximum Total Expense Ratio (TER) is capped at 2.25% for assets up to ₹500 crore (gradually decreasing to 1.05% beyond ₹40,000 crore).
• Exit load: An exit load of 1% would be applicable if redemptions are made within 15 days from the allotment date. After 15 days, no exit load would be applicable.

The scheme is placed in the level 5 risk band (high risk) and may be suitable for investors who seek long-term capital appreciation through equity exposure with limited short positions.