Quantum Index Fund (QIF ETF) Review

The Quantum Asset Management Company has come out with another Exchange Traded Fund. Seems like all the AMC are now aware of the benefits of Exchange Traded Fund (ETF’s). At the same time, the investors are now becoming aware of this efficient mode of investments and hence the asset management companies are trying to capitalize on this new ETF product boom.
The latest one to join the bandwagon is the Quantum AMC, which has come out with its latest ETF offering in the name of Quantum Index Fund (ETF).
What is Quantum Index Fund (ETF) and which benchmark index will it be tracking?
The Quantum Index Fund (QIF) is an Open Ended Fund, which will be listed on the National Stock Exchange in the form of an Exchange Traded Fund (ETF) tracking the S&P CNX Nifty Index.

What are the issue open dates for the NFO period of Quantum Index Fund (QIF ETF)?
Applicants can apply for this Quantum Index Fund (QIF ETF) between 9th June and 20th June 2008.

What are the charges and management fee for Quantum Index Fund (QIF ETF)?
The investment management fee for the QIF is 0.25% and the total estimated expense ratio is 0.75% per annum, one of the lowest in India – as claimed by Quantum AMC.

What are the entry load and exit load for Quantum Index Fund (QIF ETF)?
There are no entry load and exit load charges. Once the ETF shares of Quantum Index Fund (QIF ETF) start trading, the standard brokerage will apply and that will depend upon your broker.

Related: Reliance Banking Exchange Traded Fund RBETF: ETF   Kotak Sensex ETF,   ETF: An example with returns calculations,  Simplest way to Invest in ETF,  Gold ETF

How will be the asset allocation in Quantum Index Fund (QIF ETF)?
90% to 100% of the money will be allocated to the stocks covered in S&P Nifty index. Remaining 0% to 10% will be in the cash money market instruments for liquidity purpose.

What is the minimum investment values for Quantum Index Fund (QIF ETF)?
Minimum investment of Rs. 5,000 and further in multiples of Rs. 1,000 are accepted in Quantum Index Fund (QIF ETF)

Any tax benefit available within Quantum Index Fund (QIF ETF)?
No tax benefit is vailable within Quantum Index Fund (QIF ETF).

Any SIP or Systematic Investment Plan scheme available within Quantum Index Fund (QIF ETF)?
No SIP plan is available within Quantum Index Fund (QIF ETF). But it will be easier for investors to invest by buying shares of Quantum Index Fund (QIF ETF) as per their own convenience.

How to apply for Quantum Index Fund (QIF ETF) during the NFO period?
Quantum Mutual Fund follows a direct-to-investor approach. During the NFO, investors can download the application form from Offical Quantum Site (PDF file in New Window). You can also call on toll free number 1-800-22-3863(BSNL/MTNL) or 022-22829414 and request the application form. Email: Info@QuantumAMC.com and postal address:
Quantum AMC Pvt. Ltd., #107, 1st Floor, Regent Chambers, Nariman Point, Mumbai 400021
Application forms are also available at designated offices of HDFC Bank,Deutsche Bank,BNP Paribas and PersonalFn.

Apart from the fund management charges, this scheme appears to be an excellent one where there are no entry or exit loads. Investors having faith in Quantum AMC can bet their money on Nifty for a long term.

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