Are you considering the Quant PSU Fund NFO subscription by 15 February? Learn essential details before investing, including insights, benefits, and FAQs. Make informed decisions today.
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Quant PSU Fund: At present, PSU’s craze in the stock market is at its peak. In the last few years, the performance of public sector companies has improved significantly. Shares of government companies are trading at multi-year highs. Market experts, retail investors and institutional investors have been attracted to it. In such a situation, Quant Mutual Fund has brought a new fund offer (NFO) on this theme, which is called Quant PSU Fund. Let’s know about it in detail.
NFO closed on February 15, to reopen on February 21
Quant PSU Fund is a sectoral scheme whose NFO will open for subscription on February 2, 2024. Applications for this NFO can be made till February 15. This is an open-ended scheme. The unit allotment will be done on February 20 and it will be open for subscription again from February 21. The minimum investment required is Rs 5000. The entry load is zero. An exit load of 1% will be charged on redemption and switching within 15 days of unit allotment.
Fund’s money will be invested in PSU stocks
The scheme aims at capital appreciation in the long term. The entire fund will be invested in PSU stocks. Its benchmark index will be the BSE PSU Index TRI. The fund will be managed by Sandeep Tandon, Ankit Pandey, Sanjeev Sharma and Vasav Sehgal. Sandeep Tandon is the founder and chief investment officer of Quantum MF. He has 27 years of experience in the capital market.
PSUs play an important role in the growth of the country.
According to the information given about the new scheme on the website of Quant Mutual Fund, public sector companies play an important role in nation building. Public sector companies are mainly involved in 5 core equities. These include infrastructure development, research and innovation, strategic industries, employment generation and social equity and redistribution of wealth.
Why was Quant PSU Fund introduced at this time?
“We have launched several thematic funds,” the fund house said in its note. This has been done due to cyclical uptrend. If any investor wants to capitalize on the Indian growth story, then this is the golden time for him. Preparations are underway for structural changes in the PSU theme. Even though PSU stocks have performed tremendously in the last few times, there is still a lot left in them based on valuation.
PSU’s contribution to India’s growth
More than 50% stake in public sector companies is held by the central or state governments. These PSUs have been a major contributor to India’s early growth story. Before the private sector boom, the basis of growth was prepared by government companies. According to the CAG report, the expenditure of 23 states increased by 74% in the first quarter of FY24. In FY24, interest-free loans of Rs 1.3 lakh crore will be distributed to the states, of which Rs 60000 crore has been sanctioned.
Opportunity pipeline of millions of crores by FY2030
Talking about the Opportunity Pipeline by FY2030, Rs 2.45 lakh crore will be spent in the power sector. 17 lakh crore will be spent on railways, with the help of which the dream of high speed rail will be fulfilled. Due to indigenisation, there is a possibility of 5 lakh crore rupees in defence in the next 5 years. 2.4 lakh crore will be spent in the next 2 years under the Jal Jeevan Mission. The capital expenditure for the next five years based on the PLI scheme is Rs 5 lakh crore.
Conclusion
The Quant PSU Fund NFO presents investors with an opportunity to unlock the potential of the PSU segment through a systematic and quantitative approach to fund management. With the deadline for subscription approaching, investors should carefully evaluate the offering and consider its suitability within their investment portfolio.
FAQs
- What is an NFO?
- A New Fund Offer (NFO) is the initial offer period of a new mutual fund scheme launched by an asset management company.
- How does Quant PSU Fund differ from other PSU funds?
- Quant PSU Fund adopts a quantitative approach to fund management, leveraging advanced analytics and algorithms to identify undervalued PSU stocks.
- Can I invest in Quant PSU Fund after the NFO period?
- Yes, investors can invest in Quant PSU Fund even after the NFO period through regular purchase mode.
- What are the risks associated with investing in NFOs?
- Risks associated with investing in NFOs include market risks, liquidity risks, and specific risks associated with the underlying securities.
- Is it advisable to invest in NFOs for beginners?
- Beginners should carefully assess their risk tolerance and investment objectives before investing in NFOs, seeking guidance from financial advisors if necessary.